SCRA & MLA Guide

Interest on pre-service debts (credit cards, auto loans, mortgages, student loans, personal loans) is capped at 6% per year, including most fees and service charges. The excess interest above 6% is permanently forgiven, not deferred. Your monthly payments are reduced by the interest savings. You must submit a written request to each creditor with a copy of your orders. The creditor can challenge this only if they believe your ability to pay is not materially affected by your service. Applies to: debts incurred before active duty only. Debts taken on during service are not covered.

One of the most widely used SCRA benefits. Many major credit card issuers — including American Express, Chase, Citi, Bank of America, Capital One, and others — waive annual fees entirely for active-duty service members under SCRA. This applies to cards opened both before and during service (issuer policies vary). An Amex Platinum ($895/yr), Chase Sapphire Reserve ($795/yr), or Amex Gold ($325/yr) becomes free to carry while you’re on active duty — keeping all the rewards, lounge access, and travel credits at zero annual cost. How to request: Contact each card issuer’s SCRA/military benefits department (most have a dedicated line or online form) and provide a copy of your orders. Many issuers also retroactively waive fees back to your date of entry into active duty. After separation: Annual fees resume. Some issuers offer a grace period or retention offers, but the SCRA waiver itself ends when active duty ends.

No foreclosure (judicial or nonjudicial) on a pre-service mortgage without a valid court order during your active-duty service and for 12 months after separation. A judge can pause, block, or adjust the loan. This is strict liability — a knowing violation is a criminal offense (fine + up to 1 year imprisonment). VA Home Loan Calculator →

You can terminate a residential lease without penalty upon receiving PCS orders, deployment orders of 90+ days, or separation or retirement orders. The landlord cannot charge an early termination fee. Unpaid rent is prorated to the termination date. You can also terminate a vehicle lease entered before active duty or during service if you receive deployment orders of 180+ days or PCS from CONUS to OCONUS. Provide written notice + copy of orders.

A landlord cannot evict you or your dependents from a rental property without a court order if the monthly rent is below the SCRA threshold ($10,239.63 as of January 2025; adjusted annually). The court can stay eviction proceedings, adjust rent, or order other relief if your ability to pay is materially affected by service.

If your military service prevents you from appearing in a civil court case (divorce, custody, debt collection, foreclosure), you can request a mandatory 90-day stay, with the option to request additional stays. Does not apply to criminal cases. Courts must also appoint an attorney to represent you before entering any default judgment.

No court can enter a default judgment against you (ruling against you because you didn’t appear) while you’re on active duty without first verifying your military status and appointing an attorney. If a default judgment was wrongly entered, you can request it be set aside.

A creditor cannot repossess property (including vehicles) secured by a pre-service installment contract without a court order during your service. You must have made at least one payment before entering active duty. Late fees may still accrue and delinquencies may still be reported.

Federal, state, and local income taxes can be deferred for up to 180 days after release from service if your ability to pay is materially affected by military service. No interest or penalties accrue during the deferral period.

Your state of legal residence for tax purposes does not change simply because you’re stationed in a different state. Military income is taxed only by your state of legal domicile. The Military Spouses Residency Relief Act (MSRRA) extends this protection to spouses — a military spouse can keep the service member’s state of legal residence for tax, voting, and vehicle registration purposes.

Life insurance: Insurers cannot terminate coverage or require additional premiums due to military service. Premiums can be deferred during service + 2 years after. Health insurance: Must be reinstated upon return from service if it was in effect before and terminated during service. Professional liability: Can be suspended during service by written request; must be reinstated within 30 days of separation.

A newer SCRA provision (50 U.S.C. § 4025a) allows service members and their spouses who hold professional licenses to have those licenses recognized at a similar scope of practice when they relocate due to military orders. This applies across state lines and covers a wide range of licensed professions.

Cell phone contracts can be terminated without penalty if you receive PCS orders or deployment orders to a location where the provider cannot provide service for at least 90 days.

A storage facility cannot foreclose or enforce a lien on your property during your service and for 3 months after release, unless a court determines your ability to pay is not affected by military service.

Lenders cannot charge more than 36% MAPR on covered consumer credit products. The MAPR includes interest, fees, credit service charges, and other costs. This targets payday loans, auto title loans, tax refund anticipation loans, and high-interest personal loans.

Lenders cannot require mandatory allotments from military pay as a condition of a loan. Mandatory arbitration clauses are void. Lenders cannot charge prepayment penalties. Rolling over or refinancing a loan unless the new terms benefit the borrower is prohibited.

Residential mortgages, purchase-money auto loans (buying a car with a loan secured by the car itself), loans secured by personal property used as the dwelling, and credit transactions exempt from Regulation Z. The MLA is aimed at unsecured consumer credit, not major secured purchases.

Title 10 federal activation (30+ days): Full SCRA protections, same as active-duty members. Protections begin on the date of activation and end per the grace periods above.

Title 32 activation (authorized under § 502(f), 30+ days, in response to a national emergency): SCRA protections apply.

Weekend drill and annual training (less than 30 days): SCRA protections do not apply for short-duration duty. However, some lenders voluntarily extend SCRA-like protections — always ask.