The Servicemembers Civil Relief Act
Guide last updated: April 17, 2026. Hazard class: financial and housing. Civic education by a Concerned Parent.
The short version
The Servicemembers Civil Relief Act (SCRA) is a federal law that provides financial and legal protections to active-duty military servicemembers and, in some cases, their families. It caps interest rates on pre-service debts, protects against default judgments, limits evictions, and prevents foreclosure of pre-service obligations without a court order. Invoking SCRA generally requires written notice to the creditor plus a copy of military orders.
Who is covered
The SCRA covers:
- Active-duty members of all branches (Army, Navy, Marines, Air Force, Space Force, Coast Guard)
- Reservists and National Guard members called to active duty under federal orders
- Commissioned officers of the Public Health Service and NOAA on active service
- In some provisions: the servicemember's dependents (spouse, children, others supported by the servicemember)
Protection generally begins on the date of active-duty orders and continues through active service, with certain protections extending for a period after discharge.
The 6% interest rate cap
This is the most-used SCRA protection. Interest on pre-service consumer debts and mortgages is capped at 6% per year during active duty. "Pre-service" means the debt was incurred before active duty began.
To invoke the cap, the servicemember must send the creditor:
- A written request invoking the 6% cap
- A copy of active-duty orders
- Sent within 180 days of leaving active duty (you can invoke it later, within that window, to get retroactive relief)
The creditor must reduce the rate to 6% retroactive to the start of active duty and must forgive (not just defer) any interest above 6%. The cap applies to mortgages, credit cards, auto loans, personal loans, and most consumer debts — but not student loans (which have a separate 6% cap under a different law) or debts incurred during active duty.
Protection from default judgments
If you are sued while on active duty and do not appear in court, the court cannot enter a default judgment against you without first appointing an attorney to represent you and making findings about your military status. This protects deployed servicemembers who may be unable to respond to lawsuits in a timely way.
If a default judgment is entered against you in violation of the SCRA, you can move to reopen the judgment within 90 days of leaving active duty.
Residential eviction protection
Landlords cannot evict servicemembers or their dependents from residential housing without a court order, if the monthly rent is at or below a statutory threshold (CPI-adjusted; approximately $10,184/month in 2025). The court must either stay the eviction or adjust the terms to reduce the burden on the servicemember's military service.
Foreclosure protection for pre-service mortgages
Mortgages signed before active duty cannot be foreclosed during active duty or within one year after — except by court order or a formal SCRA-compliant waiver. A lender who forecloses in violation of the SCRA can be criminally liable and owes damages to the servicemember.
Other SCRA protections
- Lease termination. Servicemembers can terminate residential and automobile leases without penalty upon receiving orders for a PCS or deployment of 90+ days.
- Vehicle repossession protection. Similar to foreclosure — no repossession of a vehicle for a pre-service loan without court order.
- Insurance protection. Life insurance cannot lapse during active duty under certain conditions.
- Tax residency. Servicemembers keep their state of legal residence for tax purposes even while stationed elsewhere.
- Storage lien protection. Self-storage facilities cannot sell a servicemember's property for non-payment without court order.
Dependents
Some SCRA protections extend to dependents — typically the 6% cap (if the dependent is also on the debt), lease termination in limited circumstances, and certain eviction protections. The Military Spouses Residency Relief Act (MSRRA) adds related tax-residency protections for spouses.
How to invoke SCRA protection
The general pattern:
- Identify the specific protection that applies to your situation (interest rate cap, eviction stay, foreclosure protection, lease termination, etc.)
- Draft a written invocation letter specifying the protection, the underlying debt or lease, and the date active duty began
- Attach a copy of active-duty orders (Permanent Change of Station orders, mobilization orders, or activation letter)
- Send by certified mail with return receipt
- Keep a copy of everything sent and received
You can use the dispute-letter generator on this site for a starting template. Review with a JAG office or military-specialized attorney before sending — SCRA interacts with state law and creditor-specific circumstances in ways that affect the wording.
Penalties for creditor violations
Creditors who violate the SCRA can be liable for:
- Actual damages to the servicemember
- Punitive damages where the violation was willful
- Attorney's fees
- Criminal penalties for specific violations (willful eviction, willful foreclosure)
Free legal help for servicemembers
- Base JAG office. Every military installation has a Judge Advocate General (JAG) office that provides free legal assistance to active-duty servicemembers on civil matters including SCRA invocations. JAG office locator.
- ABA Military Pro Bono Project. Free civil legal assistance for junior-enlisted active-duty servicemembers and their families whose income is below program thresholds. militaryprobono.org.
- Illinois Armed Forces Legal Assistance. Illinois State Bar Association military assistance program.
- Veterans Legal Support Center at John Marshall Law School. Free legal help for Illinois veterans.