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The Servicemembers Civil Relief Act (SCRA) is a vital law designed to safeguard the legal and financial rights of those who serve our Nation.
For active-duty military members, Reservists, National Guard members on federal orders, and commissioned officers, the SCRA provides critical protections during periods of service.
These safeguards allow servicemembers to focus fully on their mission without the added stress of financial or legal burdens back home.
In this post from VA benefits expert Brian Reese, we’ll explain who qualifies for SCRA protections and highlight the top 5 benefits with real-world examples to help you better understand your rights.
Let’s begin!
Table of Contents
Summary of Key Points
- SCRA Basic Eligibility: The Servicemembers Civil Relief Act (SCRA) provides legal and financial protections for active-duty members, Reservists, National Guard members on federal orders, and commissioned officers in PHS and NOAA, including certain rights for dependents and those with Power of Attorney (POA).
- Top 5 SCRA Protections: Key protections include a 6% cap on pre-service loan interest rates, safeguards against default judgments, foreclosure protection, property repossession restrictions, and the ability to terminate housing and auto leases without penalties.
- Real-World Examples and Application Steps: Practical scenarios explain protections like reducing car loan interest rates, postponing legal proceedings, and avoiding repossession or foreclosure, with clear steps to activate benefits through written requests and deployment orders.
- Why the SCRA Matters: The SCRA provides peace of mind by addressing financial and legal challenges during military service, ensuring servicemembers and their families are protected from unfair penalties and disruptions while focusing on their missions.
Who Qualifies for Servicemembers Civil Relief Act (SCRA) Protections?
SCRA protections apply to:
- Active-Duty Service Members – Army, Navy, Marine Corps, Air Force, Space Force, and Coast Guard.
- Reserve Component Service Members – When serving on active duty.
- National Guard Service Members – Mobilized under federal orders for more than 30 consecutive days.
- Commissioned Officers – Public Health Service (PHS) and National Oceanic and Atmospheric Administration (NOAA).
Note: Dependents of service members and individuals with Power of Attorney (POA) may also exercise certain SCRA rights.
Top 5 Benefits and Protections Offered Under the SCRA
#1. Interest Rate Reduction – 6% Cap on Pre-Service Loans
What It Covers:
- Pre-service debts, including mortgages, auto loans, credit cards, and student loans.
- Lowers interest rates to 6% during active duty and up to 1 year post-service for mortgages.
Example: Imagine you took out a $25,000 car loan before joining the military at a 10% interest rate, resulting in monthly payments of $530. After activating SCRA protections, your lender must reduce the rate to 6%, lowering your monthly payment to approximately $483—a savings of about $47 per month.
How to Apply: Send a written request to your lender with a copy of your active-duty orders. Requests can be made anytime during active duty and up to 180 days after leaving service.
#2. Protection Against Default Judgments
What It Covers:
- Prevents courts from issuing judgments against servicemembers who can’t appear in court due to active duty.
Example: You’re deployed overseas and miss a court date for a civil lawsuit. Under SCRA, the court must:
- Verify your military status before proceeding.
- Appoint an attorney to represent you with POA.
- Postpone proceedings for at least 90 days upon request.
Note: Inform the court about your deployment status early to avoid complications.
#3. Protection Against Home Foreclosures
What It Covers:
- Prohibits foreclosure on pre-service mortgages without a court order.
- Extends protection for 1 year after active duty ends.
Example: You’re struggling to keep up with your mortgage payments while deployed. Your lender can’t foreclose on your home without obtaining a court order. The court can also delay foreclosure proceedings to give you time to catch up financially.
#4. Protection Against Repossession
What It Covers:
- Prevents repossession of property purchased before active duty without a court order.
Example: Before joining the military, you financed a car. After entering active duty, you fall behind on payments. Instead of immediately repossessing your vehicle, the lender must:
- Obtain a court order.
- Allow the court to delay the repossession or modify loan terms.
Note: Notify your lender of your active-duty status early to ensure compliance.
#5. Lease Termination – Housing and Vehicles
What It Covers:
- Allows servicemembers to terminate residential leases and auto leases without penalties.
Housing Example: You sign a 12-month lease before deployment but later receive orders for a Permanent Change of Station (PCS) or deployment for 90+ days.
Under SCRA, you can:
- Provide written notice of termination and a copy of orders.
- End your lease 30 days after the next rent due date.
Auto Lease Example: You lease a car before deployment and later receive orders for a PCS for overseas duty or deployment lasting 180+ days.
Under SCRA, you can:
- Submit a written notice and your deployment orders to terminate the lease without early termination fees.
Why the SCRA Matters for Veterans and Service Members
Life in the military comes with unique financial and legal challenges.
The SCRA exists to provide peace of mind so you can focus on your mission without worrying about problems at home.
Whether it’s reducing debt burdens, preventing foreclosures, or terminating leases, the SCRA is an essential safety net for servicemembers and their families.
Pro Tip: Stay proactive—document everything and communicate clearly with lenders, landlords, and legal representatives to ensure your rights under the SCRA are protected.
Need Help Navigating the SCRA?
If you need assistance understanding your rights under the SCRA, contact your nearest military legal assistance office or visit the following resources:
Military Legal Assistance Offices: legalassistance.law.af.mil
Consumer Financial Protection Bureau: consumerfinance.gov/military-financial-lifecycle
By understanding and leveraging the protections available under the SCRA, you can safeguard your finances and legal standing if the need arises.
About the Author
Brian Reese
Brian Reese is a world-renowned VA disability benefits expert and the #1 bestselling author of VA Claim Secrets and You Deserve It. Motivated by his own frustration with the VA claim process, Brian founded VA Claims Insider to help disabled veterans secure their VA disability compensation faster, regardless of their past struggles with the VA. Since 2013, he has positively impacted the lives of over 10 million military, veterans, and their families.
A former active-duty Air Force officer, Brian has extensive experience leading diverse teams in challenging international environments, including a combat tour in Afghanistan in 2011 supporting Operation ENDURING FREEDOM.
Brian is a Distinguished Graduate of Management from the United States Air Force Academy and earned his MBA from Oklahoma State University’s Spears School of Business, where he was a National Honor Scholar, ranking in the top 1% of his class.
