16 Nov SCRA offers protections on interest rates and leases.
SCRA caps the interest rates on loans incurred prior to active duty at 6%. The rate reduction applies to the interest on all pre-service loans and obligations, including mortgages, car loans, credit cards and even federally guaranteed student loans. The interest over 6% is forgiven, not deferred. Lenders cannot deny or revoke credit, change the terms of an existing loan or refuse to grant you credit because you seek SCRA protections. Any claim of rights under SCRA cannot be used as the basis for a lender to decide that you are unable to pay a debt to generate an adverse credit report. To receive the interest rate deduction, a service member must make the request in writing and include a copy of his or her orders.
If you are a renter, SCRA protects you and your dependents from eviction if your monthly rent is below a certain threshold. Absent a court order, your landlord may not evict you or your dependents from a home that is used as your primary residence during a period of military service. If an eviction is filed against you or one of your dependents, the court must temporarily stay the proceedings or adjust the amount of your financial obligation if you can show proof that you have been unable to pay your rent because of your military service. SCRA allows you to terminate, without penalties, any residential and/or business leases that you entered into prior to joining the military. You may also terminate leases while in active service if you receive orders to deploy for a period of at least 90 days or orders for a permanent change of duty station. In most cases, you will have the right to have your security deposit refunded. However, you will be responsible for any unpaid rent due before the effective date of termination, as well as any taxes, fees and reasonable charges for damages.