The Servicemembers Civil Relief Act (SCRA)

The SCRA is a federal law that provides protections for military members as they enter active duty

The law is designed to ease financial burden on servicemembers during military service

Military service is defined under the SCRA as including: full-time active duty members of the five military branches, Reservists on federal active duty, and members of the National Guard on federal orders for a period of more than 30 days

SCRA protections begin on the date they enter active military service. For military reservists, the protections begin upon the receipt of certain military orders

What are some of the benefits?

–          A 6% interest rate cap on financial obligations that were incurred prior to military service: The borrower must provide the creditor with written notice and a copy of the military orders or other appropriate indicator of military service, such as a letter from a commanding officer.

–          Protections against default judgments: In any civil court proceeding in which the defendant servicemember does not make an appearance, a plaintiff creditor must file an affidavit with the court. The court must stay a civil court proceeding for at least 90 days if an appointed attorney has been unable to contact the defendant servicemember or if there may be a defense to the action that requires that the defendant be present

–          Repossession protection: The SCRA states that a creditor may not repossess a vehicle during a borrower’s period of military service without a court order as long as the servicemember borrower either placed a deposit for the vehicle or made at least one installment payment on the contract before entering military service

Please contact our SCRA Customer Service Representative at (714) 399-1613 or email to inquire about eligibility or relief provided by the SCRA

The United States Department of Justice. (2019, June 3). The Servicemembers Civil Relief ACT (SCRA). Retrieved from