The Servicemembers Civil Relief Act - Page 3

What Transactions are Affected?

  • 6% Cap on Credit Card Interest
  • Active servicemember must request the cap or give notice to the creditor
  • Interest capped at 6% only during active duty
  • Applies to debt held jointly with servicemember's spouse
  • Interest charged in excess of 6% during SCRA period is forgiven
  • Creditor can remove the cap if it convinces a court that the active servicemember is not impaired by military service

Ability to Cancel Leases

  • Applies to business, agricultural or home leases
  • If executed by a person who, during the lease term, enters military service
  • If executed by a servicemember who, during the lease term, received orders for a permanent change of station or deployment for at least 90 days in support of a military operation

Ability to Cancel Car or Truck Leases

  • If person who signed lease enters military service for 180 days or more
  • Or if person enters service under call or orders for 180 days or less and gets an order extending service to 180 days or more, without a break in service
  • Or if person receives an order for a permanent change of station
  • From a location within CONUS to a location outside of CONUS; or
  • From a location in a state outside CONUS to a location outside of that state; or
  • If person receives an order to deploy for not less than 180 days

The SCRA can also help an active servicemember:

  • Delay foreclosure on their home
  • Delay repossession of personal property
  • Extend the time for paying tax liabilities

Consult an attorney for advice as to how the SCRA may apply in your specific situation.

Jim K. Jopling
Attorney at Law
747 East San Antonio, Suite 103
El Paso, Texas 79912

(915) 541-6099

Toll Free Facsimile:
(866) 864-6854