Understanding the Servicemembers’ Civil Relief Act (SCRA)

The Servicemembers’ Civil Relief Act (SCRA) is a cornerstone of legal protection for members of the U.S. Armed Forces. Designed to reduce financial and legal burdens during active duty, the Act protects those serving in the regular military, the Reserves, the National Guard, and, in some cases, their immediate families.

Whether you’re deployed overseas or training stateside, SCRA protections provide the peace of mind needed to focus on your mission, rather than mounting legal or financial pressures back home. This guide outlines the key benefits of the SCRA, addresses common misconceptions, and shows you how to take full advantage of the protections you’ve earned.

How The SCRA Protects Military Members

The SCRA applies to all active-duty members of the Army, Navy, Air Force, Marine Corps, and Coast Guard, as well as Reservists and members of the National Guard who are called to federal active duty for more than 30 consecutive days.

It’s important to note that these protections are not limited to those deployed in combat zones—they also extend to service members in training, assigned to non-combat posts, or mobilized for domestic operations.

While spouses and dependents aren’t directly covered, they may act on behalf of a servicemember, particularly in legal or financial matters. This support is especially valuable during deployments or Permanent Change of Station (PCS) moves.

Key Mortgage and Housing Protections Under The SCRA

1. Interest Rate Cap at 6%

The SCRA limits interest rates to 6% on most debts incurred before military service, including credit cards, auto loans, and mortgages. To activate this benefit, the servicemember must notify the creditor in writing and include a copy of their military orders. This lower rate is valid throughout active duty and for mortgages, extending up to 12 months post-service.

2. Protection from Eviction

SCRA protects active-duty military and their families from eviction if the monthly rent is below a federally updated threshold. To claim this protection, you must notify your landlord in writing and provide a copy of your military orders. Courts may delay eviction proceedings or require landlords to take additional legal steps.

3. Lease Termination Rights

Servicemembers can terminate certain leases—including residential property, automobiles, and cell phone contracts without penalty if they receive deployment or PCS orders for 90 days or more. A written notice and copy of the orders must be submitted to the leaseholder.

4. Protection Against Default Judgments

If a servicemember is unable to appear in court due to active duty, the SCRA may prevent a court from issuing a default judgment. Legal proceedings must be postponed until the servicemember can participate or be represented properly.

5. Repossession and Foreclosure Protections

In many cases, the SCRA restricts lenders from repossessing a vehicle or foreclosing on a mortgage without a court order, particularly for debts taken out before entering military service.

Who Is Eligible For SCRA Benefits?

Misconception #1: SCRA Only Applies in Combat Zones

False. SCRA protections apply regardless of deployment location, including domestic duty stations and training assignments.

Misconception #2: SCRA Benefits Are Automatic

Not true. You must request SCRA protections by notifying your lender, landlord, or service provider and providing proper documentation (usually a copy of military orders).

Misconception #3: SCRA Applies to All Debts

SCRA benefits only apply to obligations that began before active duty started. It does not apply to debts incurred while already serving unless covered under specific clauses.

How To Request SCRA Protection

Servicemembers and their families can get free guidance from the Armed Forces Legal Assistance Program. These offices offer expert advice on SCRA protections, eligibility, and how to file requests or resolve disputes.

You can locate your nearest legal assistance office here: legalassistance.law.af.mil.

Final Thoughts

The Servicemembers’ Civil Relief Act exists to safeguard your legal and financial stability while you serve. Whether you’re facing a PCS move, deployment, or unexpected hardship, the SCRA gives you the legal ground to protect your family and finances while fulfilling your duty to our country.

We proudly serve Veterans, Active-Duty Military Personnel, and First Responders across Indiana, Illinois, and Michigan. If you have questions about how SCRA protections might affect your mortgage or financial situation, contact us today—we’re here to help you navigate the path home with clarity and confidence.