The Business Side of SCRA

Financial Institutions

January 01, 2012

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The Servicemembers Civil Relief Act of 2003 (SCRA), which expanded the Soldiers’ and Sailors’ Civil Relief Act of 1940 (SSCRA), provides protections to active duty servicemembers, reservists, or members of the National Guard called to active duty, and dependents of the active duty servicemembers in limited situations. The intent is to delay, reduce, or suspend certain financial obligations, allowing servicemembers to dedicate their complete attention to their duties and relieve stress on them and their families during deployment. Examples of obligations covered by the SCRA include mortgage payments, credit card payments, termination of leases, and taxes. The most well-known protection limits the maximum interest rate charged on credit obligations acquired prior to military service or activation to six percent per year during active duty.

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