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SCRA (Service-members Civil Relief Act).
I am always dumbfounded by how many service members do not know what SCRA is and what protections and benefits it offers them! It can literally save servicemen and women thousands!
-Reduced interest rates!
*****On paper this benefit applies up until the day you enlist. APRs and interest paid on credit cards, mortgages, student loans, car loans, fees, service charges etc. will be readjusted to a maximum of 6%. However, many companies will apply SCRA benefits while service members are on active duty and even extend one year after separation. What does this mean? Many credit cards and loans will reduce interest rates to 6% or even lower (0% in some cases), and waive fees (the American Express Platinum card has a $450 annual fee which is waived for military). Navy Federal and USAA apply the federal SCRA rules to the letter, which is why they can charge young service members upwards of 24.99% APR on their credit cards. However, you'll find that even cards like Best Buy will reduce APR to 6% or lower.
-Postponement of foreclosures.
*****No sale, foreclosure or seizure of property for a breach of a pre-service mortgage obligation is valid if made during or within nine months after your period of active duty, unless pursuant to a valid court order.
-Deferred income taxes.
*****The IRS and state and local taxing authorities must grant a deferral of income taxes due before or during your military service if your ability to pay such income tax is materially affected by military service. No interest or penalty can be added as a result of this type of deferral.
-Eviction prevention
*****You and your family cannot be evicted from housing for nonpayment of rent without a court order regardless of the language of your rental agreement or local laws.
-Protection against default judgments
*****The court must grant a stay of at least 90 days if it determines that there may be a defense to the action and that the defense cannot be presented without your attendance.
-Postponed civil court matters
*****If your military service will prevent you from participating in a civil court action or administrative proceeding, you can request a 90-day delay (or "stay") in the proceeding; you are automatically entitled to this delay if you follow all of the requirements.
-Protection for small-business owners
*****If you are a small-business owner, your nonbusiness assets and military pay are protected from being available to satisfy creditors while you are on active duty. This applies to debts or obligations you may have due to your business.
-Termination of lease agreements
*****You may terminate your residential lease by delivering written notice of termination.
-Termination of automobile leases
*****If you signed a lease agreement and then received orders to deploy, you may be able to terminate the lease under the SCRA.
-Termination of phone service
*****You may request termination of cell phone service or phone exchange service if you entered a contract for such services before receiving military orders to relocate for not less than 90 days to a location that does not support the contract.
-Prevention of repossession of property
*****Without a court order, property cannot be repossessed for nonpayment or a contract terminated or rescinded for any "breach" by you prior to or during your military service
-Life insurance coverage protection
*****Life insurance companies cannot terminate coverage or require payment of additional premiums if you engage in military service .
-Suspension of professional liability insurance
*****If you are a professional in health care, legal services or another professional as determined by the secretary of defense and you are called to active duty, you may suspend your professional liability insurance policy upon written request to the insurance carrier.
-Voting rights in your home state
*****Like your tax residency, your residency for state, federal or local voting purposes is unaffected by your absence from your usual voting state due to military service. Similar protections exist for spouses.
http://www.militaryonesource.mil/moving?content_id=267394
I am always dumbfounded by how many service members do not know what SCRA is and what protections and benefits it offers them! It can literally save servicemen and women thousands!
-Reduced interest rates!
*****On paper this benefit applies up until the day you enlist. APRs and interest paid on credit cards, mortgages, student loans, car loans, fees, service charges etc. will be readjusted to a maximum of 6%. However, many companies will apply SCRA benefits while service members are on active duty and even extend one year after separation. What does this mean? Many credit cards and loans will reduce interest rates to 6% or even lower (0% in some cases), and waive fees (the American Express Platinum card has a $450 annual fee which is waived for military). Navy Federal and USAA apply the federal SCRA rules to the letter, which is why they can charge young service members upwards of 24.99% APR on their credit cards. However, you'll find that even cards like Best Buy will reduce APR to 6% or lower.
-Postponement of foreclosures.
*****No sale, foreclosure or seizure of property for a breach of a pre-service mortgage obligation is valid if made during or within nine months after your period of active duty, unless pursuant to a valid court order.
-Deferred income taxes.
*****The IRS and state and local taxing authorities must grant a deferral of income taxes due before or during your military service if your ability to pay such income tax is materially affected by military service. No interest or penalty can be added as a result of this type of deferral.
-Eviction prevention
*****You and your family cannot be evicted from housing for nonpayment of rent without a court order regardless of the language of your rental agreement or local laws.
-Protection against default judgments
*****The court must grant a stay of at least 90 days if it determines that there may be a defense to the action and that the defense cannot be presented without your attendance.
-Postponed civil court matters
*****If your military service will prevent you from participating in a civil court action or administrative proceeding, you can request a 90-day delay (or "stay") in the proceeding; you are automatically entitled to this delay if you follow all of the requirements.
-Protection for small-business owners
*****If you are a small-business owner, your nonbusiness assets and military pay are protected from being available to satisfy creditors while you are on active duty. This applies to debts or obligations you may have due to your business.
-Termination of lease agreements
*****You may terminate your residential lease by delivering written notice of termination.
-Termination of automobile leases
*****If you signed a lease agreement and then received orders to deploy, you may be able to terminate the lease under the SCRA.
-Termination of phone service
*****You may request termination of cell phone service or phone exchange service if you entered a contract for such services before receiving military orders to relocate for not less than 90 days to a location that does not support the contract.
-Prevention of repossession of property
*****Without a court order, property cannot be repossessed for nonpayment or a contract terminated or rescinded for any "breach" by you prior to or during your military service
-Life insurance coverage protection
*****Life insurance companies cannot terminate coverage or require payment of additional premiums if you engage in military service .
-Suspension of professional liability insurance
*****If you are a professional in health care, legal services or another professional as determined by the secretary of defense and you are called to active duty, you may suspend your professional liability insurance policy upon written request to the insurance carrier.
-Voting rights in your home state
*****Like your tax residency, your residency for state, federal or local voting purposes is unaffected by your absence from your usual voting state due to military service. Similar protections exist for spouses.
http://www.militaryonesource.mil/moving?content_id=267394
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Edited >1 y ago
Posted >1 y ago
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ENS (Join to see) Didn't realize this protection existed. Been out of the business for so long it may not have been around. Is there a type-O in the first sentence tho? which states : "On paper this benefit applies up until the day you enlist." Thanks for sharing somethings all SMs should be aware of.
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ENS (Join to see)
Capt Tom Brown actually, SCRA only applied up until a person enters into the military. They can then apply SCRA to any loans and debts they accrued (an are still paying off) prior to enlisting. However, many financial institutions will extend this offer up through the day you leave the service, or in some cases, plus one year.
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Why is that I good to the V/A for medical but not the dentist! I don’t understand that at all!! Could someone please answer that question.
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