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  • Hide What is the SCRA?

    The Servicemember's Civil Relief Act (SCRA) provides protections for individuals who are entering the service, called to active duty in the military or deployed servicemembers. The SCRA is intended to postpone or suspend certain civil obligations—many of them financial—so service members can devote their full attention to their duties while their family members experience less stress.

    For example, the SCRA places a limit on the amount of interest that may be collected on financial obligations of any kind: 6 percent per year during the time of military service. Any amount over and above that 6 percent is permanently forgiven.

    The SCRA also defines servicemember benefits with regard to issues such as trials, taxes, leases, mortgages and more. For additional information on the SCRA, visit Military.com .

  • Show How do I cap my interest rates at 6 percent under SCRA?

    There are 3 conditions you need to fulfill in order to benefit from the 6 percent interest rate cap provided by the SCRA. You need to have taken out the loan before you began active duty (a loan taken out while on active duty is not eligible for SCRA benefits), you must make a request for benefits within 180 days after the end of your active duty and you must request the benefits by supplying a copy of your active duty orders or other qualifying documentation. Alternatively, you may provide either a completed copy of the Military Short Form (available from your local JAG or Housing office) or a letter on official letterhead from your commanding officer. This letter must contain your full name, Social Security number, date of birth, home address and active duty start date, as well as your commanding officer's telephone number and a statement acknowledging that your creditors may rely on it.

  • Show Who is eligible for SCRA benefits?

    SCRA protections extend to all active duty servicemembers and activated reservists, and active duty members of the commissioned corps of the National Oceanic and Atmospheric Administration (NOAA), the commissioned corps of the Public Health Service and the National Guard (when called to active duty).

  • Show How long do SCRA benefits and protections last?

    Your SCRA benefits and protections begin the day you enter active duty. SCRA benefits legally expire at the end of your active duty period, but there's good news if you are a Bank of America customer: If you have a credit card or installment loan amount with Bank of America, we will extend your benefits on those accounts for an additional 6 months. If you have a mortgage account with us, we will extend your benefits for an additional 12 months.

  • Show Is my spouse eligible for SCRA interest rate benefits?

    It depends. SCRA benefits and protections apply to credit that's extended to a servicemember in the name that servicemember or to a servicemember and spouse jointly. For example, if a husband is called to active duty, the wife cannot request an interest rate reduction on a credit card that is in her name. However, if the credit card account in question is a joint account, then SCRA benefits may apply. Spouses and dependents can petition a court for relief if the servicemember provided more than one-half of the individual's support for the 180 days immediately preceding an application for relief. Contact your military legal service office or your private attorney to petition a court for relief.

  • Show Will my spouse be able to handle questions about SCRA for me in my absence?

    Yes, but in order for your spouse to be able to obtain information and make any decisions on your behalf regarding your accounts, you should make sure that power of attorney has been properly assigned. For full details about setting up power of attorney, be sure to contact your military legal service office or your private attorney.

  • Show Will the SCRA protect me from foreclosure?

    If your mortgage was obtained before you entered military service, the SCRA requires your lender to obtain a court order before it can foreclose on your home during any covered period of military service and for 12 months after your service is completed. The lender must determine whether you are a servicemember on active duty, and the court is required to protect your rights under SCRA. While some states have laws that allow lenders to foreclose on a mortgage without a court order, the SCRA does not allow lenders to take advantage of such laws against servicemembers who obtained their mortgages before their active duty status began. In order to ensure foreclosure does not occur and that you get the interest rate benefits to which you’re entitled, it’s always a good idea to notify the bank of your call to active duty.

  • Show Will the SCRA protect me from repossession?

    If your installment loan was obtained before you entered military service, the SCRA requires your lender to obtain a court order before it can repossess your personal property during any covered period of military service. The lender must determine whether you are a servicemember on active duty, and the court is required to protect your rights under SCRA. In order to ensure repossession does not occur and to ensure you get the interest rate benefits that you are entitled to, it's always a good idea to notify the bank of your call to active duty.

  • Show If I'm protected from foreclosure and repossession, do I still have to make my payments?

    Yes. While SCRA protections include a prohibition on foreclosure and repossession without a court order, a foreclosure or repossession can still take place if a court deems it appropriate. In addition, in accordance with Fair Credit Reporting practices, the bank continues to report delinquent payments to the credit bureau. Any missed or late payments, even if during a covered active duty period, will affect your credit rating.

  • Show I requested benefits but the bank declined my request even though I'm in the military. Why?

    To be entitled to the interest rate and foreclosure protections, you must have opened your loan or line of credit prior to going on active duty. If you made the loan while you were already on active duty, you are not entitled to interest rate benefits and foreclosure protections.

  • Show I requested benefits but the bank declined my request even though I was called to duty in the state National Guard. Why?

    To be entitled to benefits and protections you must be called to active duty under Federal Orders by the President or the Secretary of Defense. A call to duty by the governor of the state for full time National Guard duty or training is not eligible. Certain states do provide benefits for state-ordered duty, but state duty is not covered under the Federal SCRA.

  • Show The bank reported me to the credit bureau as being past due even though I'm currently receiving SCRA benefits. Can the bank report me past due?

    SCRA does not relieve you of your responsibility to make payments in a timely manner and it does not prevent the bank from reporting past due payments to the credit bureau. The bank cannot, however, charge you a late fee for any late payments due in the SCRA eligibility period if the fee coupled with the interest charges would amount to greater than 6%.

  • Show I have several accounts with the bank. Can I submit one request for SCRA benefits that applies to them all?

    The bank makes every effort to ensure all of a customer's eligible accounts are identified when a request for benefits is submitted. However, you may want to submit a request for each product to ensure that you receive all the benefits to which you're entitled.

  • Show My car loan was approved for SCRA benefits, but my mortgage was not. How can that be?

    To be entitled to the 6% interest rate cap and foreclosure and repossession protections you must have opened your loan or line of credit prior to going on active duty. If you made a loan while you were already on active duty, you are not entitled to interest rate benefits and foreclosure or repossession protections on that account. So while some accounts qualify for benefits and protections, others may not based on their open date.

  • Show What do I need to do to request benefits?

    Get detailed instructions in our SCRA Requirements page. You have up until 180 days after the end of active duty to request benefits.

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