Facts About Servicemembers’ Civil Relief Act (SCRA)
As a public service to my fellow military members, especially those called into active service in the National Guard and Reserves, I wanted to pass along some information I found on creditcards.com about the Servicemembers’ Civil Relief Act (SCRA).
The first one is titled “Stepping up for America’s military men and women”:
Several of the world’s largest credit card issuers are stepping up to help ease the burden of debt for active military by offering protections that go significantly beyond the call of duty.
Under the Servicemembers’ Civil Relief Act (SCRA), lenders must offer several protections beyond what is available for civilians, such as a cap of 6 percent on the interest rates on loans military service men and women incur prior to becoming active. Some others, however, have chosen to do more.
To find out which ones and how far they really go, check out the article and please pass this along to any troops you know may need it.
The second article is titled “Law eases debt burden for active military“:
Americans’ personal debt reached $2.6 trillion earlier this year, and the men and women of the nation’s armed forces have felt their share of financial pain. However, a nearly 70-year-old law is helping to ease the debt burden for those called to actively serve their country.
Financial protections for service members exist in the form of the Servicemembers’ Civil Relief Act (SCRA). Under the law, called the Soldiers and Sailors Civil Relief Act when it was written in 1940 until it was renamed and updated in 2003, lenders must cap at 6 percent the interest rates on loans military service members incurred prior to becoming active.
The 6 percent interest cap applies to any charges — including credit card debt, service charges and renewal charges or fees — except bona fide insurance. The act specifies that in order to receive the interest rate reduction, a service member must request it in writing and include a copy of his or her military orders.
To find what additional protections the law includes, check out the rest of the article.
Hope these two links are helpful.
