Individuals who serve in the U.S. Armed Forces may suffer financial difficulties as a result of their military service, compounded by the fact that they often serve overseas and may be directly involved in combat.

For this reason, federal law extends legal protection to military personnel and their dependents to ensure military personnel do not suffer, or have to worry about, severe financial consequences while serving their country. This law is known as the “Servicemember Civil Relief Act” (SCRA).  It may also be called “Soldiers & Sailors” referring to an older law called the “Soldiers and Sailors Civil Relief Act (SSCRA).”

The Servicemember Civil Relief Act (SCRA) provides the following protections on any loan issued to an eligible person before they entered military service:


  • Interest Rate & payment amount reduction: Interest rates must be reduced to 6% and payment amounts must be reduced based on the new rate. Members may assert this right up to 180 days after they leave military service and the reductions must be retroactive to the date of service.
  • Additionally, we may not repossess a vehicle or foreclose real estate without first obtaining a court order.  This action would only be taken in the most extreme of circumstances.

Note that these protections are not automatic.  It is up to you to notify us of your service and to request that we activate the SCRA provisions.