The SCRA protects you, as well as your dependents, if any, from being forced to testify or pay penalties against you based on debt they may have. It is also important to know that the final decision on the applicability of this act lies with each creditor and not the Department of Defense, so don’t approach them for further details. In this article we will discuss. View source to know if you qualify for SCRA.
What Is SCRA?
The Servicemembers Civil Relief Act (SCRA) is a federal law that gives active duty military personnel certain protections during service. The SCRA applies to all military branches, and most of the protections provided by the SCRA are available to all active duty members, regardless of whether they are on foreign or domestic soil. Some of the more important provisions include:
Rent and mortgage protections. Under the SCRA, you may terminate your lease if you receive a permanent change of station orders or if you are deployed for 90 days or more. If your lease runs through the end of your deployment, you may suspend rent payments without penalty while away. You also have the right to break your lease early without penalty if you receive PCS orders, but only if your lease period is less than 120 days from your exit date from leased premises or the move-in date for month-to-month leases.
Credit card protections. Your credit card interest rates can’t increase while you’re on active duty unless there’s an increase in the prime rate, which hasn’t happened since 2006. You also have protection from default judgments against you while on active duty or within 60 days after discharge from active duty status due to military service obligations.
Ways on How to Know if You Have Qualified For SCRA
If you are in the military, you may be entitled to certain benefits unavailable to civilians. Benefits such as student loans, tax breaks, and mortgage relief can help make life easier for military members and their families. However, some benefits are not available under SCRA. If you want to know if you qualify for these benefits, here are some ways how to see if you have qualified for SCRA:
1. Check Your Paperwork
Suppose you received a letter from your lender telling you about SCRA relief. In that case, your lender has already reviewed your situation and determined that you meet all requirements for receiving this benefit. The letter will also contain information on how long this benefit will last and what kind of documentation you require. You can also check with your lender if they have sent out any letters regarding SCRA relief.
2. Look at Your Credit Report
If there is a notation on your credit report stating that the Department of Justice has granted you SCRA relief, then it means that they have approved your request for this benefit. This notation should appear on both Experian and Equifax reports within 30 days after receiving approval from the DOJ.
3. Check Your Orders
You can start by checking your orders. If you have received them and they include a call to active duty, then you’re covered under the SCRA. In some cases, however, it may take time before your orders arrive, so make sure that if there’s no date on it yet, ask someone who knows about it so that they can confirm whether or not you’re covered under this law.
4. Check Your Military Status
If you’re unsure whether your orders qualify as “active duty,” check with your unit’s finance office or personnel department. It’s also helpful to have a copy of your orders handy when contacting creditors so they can verify your eligibility for relief under SCRA.
5. Call Your Lender
If you want to know if you qualify for SCRA protection, call your lender or servicer and ask them if they offer any SCRA protections for servicemembers. Some lenders have their policies for granting relief under the SCRA; others follow federal guidelines set by the Consumer Financial Protection Bureau (CFPB).
6. Get a Letter from Your Commanding Officer
If your lender isn’t familiar with or willing to grant relief under the SCRA, ask them how they can determine whether or not you’re eligible for replacement. They’ll likely require documentation from your commanding officer confirming that you’re on active duty.
Wrapping Up
The SSCRA is one of the best service credit protections for military members. Acceptance of this will be an advantage for any individual. Eligibility for military separation must be attained before you can avail of the benefit. Getting SCRA benefits can be a possibility depending on your current situation.