Orders sent you somewhere, and the contracts you signed as a civilian did not move with you. Federal law gives you a set of shields no civilian has — a rate cap, a way out of a lease, a pause on an eviction — but every one of them switches on only when you invoke it, and the office that helps you do that is free.
The SCRA: the 6% cap and how to switch it on
The Servicemembers Civil Relief Act (SCRA) covers you from the day you enter active duty, and Reserve and Guard members from the date on their activation orders. Its best-known rule: on any debt you took on before active duty — a credit card, a car loan, student loans, a mortgage — the creditor must cut the interest rate to 6% for your whole period of service (for a mortgage, service plus one year after), and the interest above 6% is forgiven, not deferred. That is the statute (50 U.S.C. §3937), not a courtesy.
To invoke it, send the creditor written notice and a copy of your orders. You can do that any time while serving and up to 180 days after you leave active duty, and the reduction is effective from the date you entered service, so interest already charged above 6% since then is refunded or credited. Ask the creditor for its SCRA form, keep a copy of everything, and check the next statement for the new rate.
| SCRA protection | What it does | How you invoke it |
|---|---|---|
| Interest-rate cap | 6% on pre-service debt during service (mortgages: plus one year after); the excess is forgiven | Written notice and a copy of orders to the creditor, up to 180 days after release |
| Lease termination | End a housing or auto lease you signed before active duty, or after receiving PCS orders or deployment orders of 90 days or more | Written notice and a copy of orders to the landlord or lessor |
| Eviction stay | A court must delay eviction 90 days when service keeps you from paying rent, for rent under a ceiling indexed each year (current figure on the Military OneSource page) | The court, with the legal office drafting the request |
| Civil court stay | A 90-day delay in a civil case your service keeps you from attending | A request to the court |
| Default judgments | A court must check your military status before entering a default judgment, and one entered while you served can be reopened | The legal office |
The MLA: the cap on new credit
The Military Lending Act (MLA) covers the other end of the timeline. While you are on active duty, and for your dependents, lenders may not charge more than a 36% Military Annual Percentage Rate (MAPR) on most new consumer credit — payday loans, vehicle-title loans, installment loans, credit cards, refund-anticipation loans. The MAPR counts interest plus most fees, credit insurance and add-on products, so a lender cannot dodge the cap by moving the cost into a fee. Covered loans also cannot require mandatory arbitration. Two things fall outside the MLA: a mortgage, and a loan used to buy the car or goods that secure it.
The lender must check your status in the Defense Department's MLA database before it lends. If a loan broke the cap, file a complaint at consumerfinance.gov/complaint and take the contract to the legal office — an MLA violation can make the loan void from the start.
| Law | Covers | Applies to |
|---|---|---|
| SCRA | Debts, leases and court cases from before active duty | You, from entry (or activation) until release, plus one year for the mortgage cap |
| MLA | New consumer credit you open while serving | You on active duty and your dependents |
The reason the cap exists is visible from the main gate of almost any installation: payday and title lenders, buy-here-pay-here car lots and rent-to-own stores cluster there because a steady paycheck and a young population far from home make a reliable market. "Military-friendly" on a sign is a marketing label, not a legal category. The predatory-lending lesson shows how to read the contract; the legal office will read it with you before you sign.
Where the free help is
- Installation legal assistance office. Free legal advice and letters for service members and dependents, including SCRA notices, lease terminations and loan reviews. Find yours through the Armed Forces Legal Assistance locator (legalassistance.law.af.mil).
- Military OneSource, 800-342-9647, militaryonesource.mil. Free financial counseling and legal referrals, day or night.
- Personal Financial Counselors at your installation's family support center, for budgets and debt plans.
- The Justice Department enforces the SCRA; report a creditor or landlord that ignores a valid notice at servicemembers.gov or through the legal office.
These protections are strong, free, and inert until you use them. Send the notice, keep the copy, and let the legal office do the drafting.