The Servicemembers Civil Relief Act - Page 3
What Transactions are Affected?
- 6% Cap on Credit Card Interest
- Active servicemember must request the cap or give notice to the creditor
- Interest capped at 6% only during active duty
- Applies to debt held jointly with servicemember's spouse
- Interest charged in excess of 6% during SCRA period is forgiven
- Creditor can remove the cap if it convinces a court that the active servicemember is not impaired by military service
Ability to Cancel Leases
- Applies to business, agricultural or home leases
- If executed by a person who, during the lease term, enters military service
- If executed by a servicemember who, during the lease term, received orders for a permanent change of station or deployment for at least 90 days in support of a military operation
Ability to Cancel Car or Truck Leases
- If person who signed lease enters military service for 180 days or more
- Or if person enters service under call or orders for 180 days or less and gets an order extending service to 180 days or more, without a break in service
- Or if person receives an order for a permanent change of station
- From a location within CONUS to a location outside of CONUS; or
- From a location in a state outside CONUS to a location outside of that state; or
- If person receives an order to deploy for not less than 180 days
The SCRA can also help an active servicemember:
- Delay foreclosure on their home
- Delay repossession of personal property
- Extend the time for paying tax liabilities
Consult an attorney for advice as to how the SCRA may apply in your specific situation.
