What Is The Servicemembers Civil Relief Act (Scra)?
The Servicemember Civil Relief Act (SCRA) is a federal statute allowing servicemembers to suspend or postpone some civil obligations so the servicemember can devote full attention to military duties. The original Soldiers’ and Sailors’ Civil Relief Act was passed during World War I. The statute was reenacted during World War II and was modified during Operation Desert Storm.
The Servicemembers Civil Relief Act (SCRA), formerly known as Soldiers and Sailors Civil Relief Act, was established in 1940 to provide relief measures to persons in active military status. According to Section 526 of the 1940 Act, all debt incurred by a servicemember prior to active military duty service will be charged a maximum interest rate of 6% during the period of active military duty service.
The SCRA, formerly known as the Soldiers and Sailors Civil Relief Act, was established in 1940 to provide relief measures to persons in active military status. According to Section 526 of the Act, all debt incurred by a servicemember prior to deployment will be charged a maximum interest rate of 6% during the period of deployment.
The SCRA was created in 2003 completely replaced the Soldiers’ and Sailors’ Civil Relief Act (SSCRA) of 1940. The SCRA (and previously the SCCRA) protects those persons who serve on active military duty for the nation’s defense, from adverse consequences to their legal rights that may result because of such service, so that such persons may devote their full attention and all their energies to the nation’s defense. The SCRA strengthens the protections originally granted by the SSCRA, extends certain protection for dependents of the member on active duty, and creates new protections for members. The SCRA provides protection for members in civil court and administrative actions. It also provides protections for issues involving taxation, house/apartment leases, car leases, interest rates and insurance.
