When you go on active duty, it may be hard to keep up with all of your credit payments. This is especially true if you have loans with high interest rates. The Servicemembers Civil Relief Act (“SCRA”) may allow you to reduce your rate of interest on those pre-existing loans while you are on active duty. This federal law sets a maximum interest rate of 6%. (This includes service charges, renewal charges and fees.)
The Servicemembers Civil Relief Act (SCRA) may allow you to reduce your rate of interest on those pre-existing loans while you are on active duty. This federal law sets a maximum interest rate of six percent (6%). (This includes service charges, renewal charges and fees.) It applies in cases where your "active duty materially affects your ability to pay." For example, if you will lose income because of your military service.
- You must have taken on the debt before beginning active duty; and
- You must show that your ability to pay the debt has been materially affected due to military service (such as reduced income).
- Answer a few simple questions.
- Print out your form.
- Proofread and sign it.
- Attach a copy of your Current Leave and Earnings Statement.
- Attach a copy of your Activation Orders.
- Make copies for your own records.
- Then send the original, with attachments, to your credit card company.This is an easy-to-use interactive form. All you need to do is answer a few simple questions and then print out your form. The program will create a letter and instructions. You can use this to notify your lending institution that they cannot charge you more than six percent (6%) interest on your loan.
- Interactive Form Packet is currently unavailable.
- Sample Form is attached.
The correct citation is 50 U.S.C.A. § 3937 (formerly cited as 50 App. USCA § 527).
You must have Microsoft Word or Word Viewer installed on your computer to use the interactive form packet.
You must have Adobe Reader to view the sample form packet. You can download Adobe Reader for free here.
Resource Date: November 2015; Updated January 2018
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