What Is Servicemembers Civil Relief Act (SCRA)?

Who Is Protected by the SCRA?

The SCRA covers members of the uniformed services who are on active duty. This includes:

• Active-duty Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force members
• Reservists on active duty and National Guard members on federal service, including a call authorized by the President or Secretary of Defense for more than 30 consecutive days to respond to a national emergency; the exact service category matters
• Commissioned officers of the Public Health Service and NOAA on active service

Some protections also extend to dependents of servicemembers — a spouse on a jointly held mortgage or lease may qualify for certain SCRA protections even if they are not in the military themselves. Courts have given this dependent protection varying interpretations; legal assistance from a JAG officer or legal aid organization is valuable when dependents are involved.

The 6% Interest Rate Cap: § 3937

This is the provision most commonly used by active-duty personnel. If you incurred a debt — any debt — before entering active duty, the interest rate is capped at 6% per year for the duration of your active service (and for one year after, if the debt is a mortgage). Key mechanics:

• What qualifies: Mortgages, credit cards, personal loans, auto loans, student loans — any debt incurred before active duty. The debt must have been incurred by the servicemember, or jointly with a spouse.
• How to invoke: Send written notice to the lender, along with a copy of military orders, at any time during service and no later than 180 days after it ends. Once the lender has them, it must apply the cap back to the date your service began.
• Retroactive application: The reduction applies from the date active duty began, not the date notice was sent. Excess interest paid in the interim must be credited to the account.
• What "interest" covers: Under DOJ enforcement guidance, "interest" includes not just the stated rate but also origination fees, service charges, and other fees — so lenders cannot evade the cap by calling the excess a "service fee."
• Effect on payment: The monthly payment must be reduced to reflect the lower rate. The lender cannot simply maintain the same payment and re-amortize — the servicemember must see an actual reduction in what they owe each month.

Foreclosure Protection: § 3953

The SCRA's foreclosure protection has two layers depending on whether the state uses judicial or non-judicial foreclosure:

• Non-judicial foreclosure: A sale during active duty or in the 12 months after is not valid unless a court ordered it first, or the servicemember signed a valid written waiver under § 3918. In practice, a lender in a non-judicial state generally has to go to court first. A lender that knowingly forecloses in violation commits a federal misdemeanor.
• Judicial foreclosure: Requires a court order. In a case filed during service or in the 12 months after, the court can pause the case for as long as justice and equity require, or adjust the obligation to protect everyone's interests. It must do one or the other when the servicemember asks and military service materially affects their ability to pay.

The protection applies only to mortgages incurred before active duty. The mortgage foreclosure protection in § 3953 and the 6% cap both generally cover obligations incurred before military service. Other SCRA protections have their own eligibility rules.

SCRA and VA Loans: Overlapping Protections

Active-duty servicemembers with VA loans have overlapping protections from two sources. The SCRA provides the 6% cap and the court-order rule for foreclosure during service and the year after. VA loans separately carry VA servicing requirements, including VA approval requirements before any foreclosure on a VA-guaranteed loan, and the VA's willingness to intervene with servicers on behalf of veterans facing financial hardship. Together, these create a particularly strong protection stack — a servicemember with a VA loan who is on active duty is protected by SCRA during service and by VA servicing rules and guarantee backing throughout the loan's life.

Default Judgment Protection: § 3931

Before a court enters a default judgment, the plaintiff must file a sworn statement saying whether the defendant is in military service. If it appears the defendant is serving, the court must appoint a lawyer for them first. It must also pause the case for at least 90 days if there may be a defense that can't be presented without the servicemember, or if the lawyer can't reach them. This prevents creditors from obtaining quick judgments — which can lead to wage garnishment, bank levies, and liens — while a servicemember is deployed and unable to respond to legal process.

How to Invoke SCRA Protections

Some SCRA protections need you to act; others, like the foreclosure and default-judgment rules, bind lenders and courts on their own. Notice matters most for the interest rate cap:

1. For the interest rate cap: Send a written notice plus a copy of orders to each lender during service and no later than 180 days after it ends. Use certified mail, return receipt requested.
2. For foreclosure protection: The protection doesn't depend on notice, but tell your servicer in writing when you receive orders. Most major servicers have dedicated SCRA teams and online notification portals. The DOD's Military OneSource program provides free assistance.
3. For court proceedings: File a notice of active military service status in any pending litigation. Before a default judgment, the plaintiff must tell the court whether you are in military service; the DOD's SCRA website is the usual way to check.

Enforcement and Violations

The DOJ Civil Rights Division and CFPB both enforce the SCRA. Private violations can be remedied through civil suit — courts can award damages, impose equitable relief (rescinding an unlawful foreclosure, restoring account terms), and in egregious cases refer matters to DOJ for criminal prosecution. Willful violation of the SCRA's foreclosure protection is a federal misdemeanor.