The Servicemembers Civil Relief Act: What It Actually Caps

The Servicemembers Civil Relief Act (SCRA) is a federal law, not a lender courtesy — and it gives active-duty service members specific, enforceable protections most people (including some lenders) don't fully know about.

What it caps. For debt incurred before entering active duty, SCRA caps interest at 6% while on active duty, on qualifying loans and credit accounts, once the lender is properly notified. It also provides protections against certain evictions, foreclosures, and default judgments during active duty.

What it doesn't cover. Debt taken on after entering active duty generally isn't covered by the same interest cap, and the protection isn't automatic — it typically requires notifying the lender with proof of active-duty status. It's also specific to certain types of accounts, not a blanket freeze on all debt.

If pre-service debt is part of a larger picture that needs sorting out, see what applies to you with a free check-in.