SCRA Guide for Servicemembers

The Servicemembers Civil Relief Act (SCRA) is a federal law that protects active duty military members from financial and legal burdens that could harm their ability to perform their duties. Most servicemembers underutilize SCRA protections because they don't know what it covers or how to invoke it. These protections can save thousands of dollars during deployment and active duty periods.

Interest Rate Cap

SCRA caps interest rates at 6% per year on most debts incurred before entering active duty — including mortgages, credit cards, auto loans, and student loans. Lenders must reduce the rate to 6% for the duration of active duty service and forgive all interest above 6% (not just defer it). To invoke: send a written request to each lender with a copy of your orders. The lender must comply within 90 days. This protection does not apply to debts taken on after active duty begins.

Protection Against Default Judgments

Courts cannot enter a default judgment against an active duty servicemember without first verifying their military status and potentially staying the proceedings. If you are sued while deployed and cannot appear in court, you can request a 90-day stay (delay) of the proceedings. Creditors who attempt to obtain default judgments without complying with SCRA face significant penalties.

Lease Termination Rights

SCRA allows servicemembers to terminate residential leases early without penalty under specific conditions: if you receive PCS orders to a location more than 35 miles away, if you are deployed for more than 90 days, or if you are released from active duty. Written notice must be given with a copy of your orders attached. The lease terminates 30 days after the next rent due date following the notice. Landlords cannot charge early termination fees or keep security deposits based on early termination under SCRA.

Protection from Eviction

Landlords cannot evict an active duty servicemember or their dependents from a primary residence without a court order during the period of service. Courts can stay eviction proceedings for up to 90 days if military service is affecting the servicemember's ability to meet lease obligations.

Vehicle Lease Termination

Similar to residential leases, servicemembers can terminate vehicle leases early without penalty when: receiving PCS orders outside the continental US, or deployment orders for 180+ days. Written notice with orders must be provided. The vehicle must be returned within 15 days of the notice.

Tax Benefits

SCRA provides that only the state of domicile (not the state where stationed) can tax the income of active duty servicemembers. If you are stationed in California (13.3% income tax) but are domiciled in Texas (no income tax), California cannot tax your active duty pay. This applies to spouses under the Military Spouses Residency Relief Act (MSRRA) as well.

How to Invoke SCRA Protections