Improving SCRA Benefit Utilization

Summary#

This bill adds information about financial protections under the Servicemembers Civil Relief Act (SCRA) to certain financial literacy training for military members. It requires training to include consumer protections for members and dependents, including the SCRA limit on interest rates for debts from before service.

The bill also changes when servicemembers get written notice of SCRA benefits. It requires notice when a person first enters military service, and for reserve members when they first enter the reserve component and when they are mobilized or individually called to active duty for more than 30 days.

The bill changes the SCRA rule about interest rates on pre-service debts so that a creditor must apply the SCRA maximum interest rate to all obligations a servicemember has with that creditor, not only the specific debts mentioned in a servicemember's notice. Creditors must also offer ways for a servicemember to submit any required documents online, by mail, or by fax.

What it means for you#

• If you are a servicemember or a dependent, you should receive financial literacy training that explains SCRA protections, including the interest rate limit on some pre-service debts.
• New service members and certain reservists must get written notice about SCRA protections at the times listed above.
• If you are called to active duty, creditors must apply the SCRA interest-rate limit to any obligation you have with them and must provide online, mail, or fax options to submit documents to get the protection.
• Financial institutions and creditors will need to adjust their processes to apply rate limits more broadly and accept documents by the methods listed.

Expenses#

No publicly available information on costs to the federal government, the military, servicemembers, or private parties is included in the bill text or metadata.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.