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The Servicemembers Civil Relief Act (SCRA)

Heartland Bank is proud to support the banking needs of those military service personnel who are sacrificing for the benefit of our nation. You work hard and serve with pride, and under protections of the Servicemembers Civil Relief Act (SCRA) you may be entitled to certain rights.

What is the Servicemembers Civil Relief Act (SCRA)?

  • The Servicemembers Civil Relief Act (SCRA) of 2003, previously known as the Soldiers’ and Sailors’ Civil Relief Act, is a federal law that protects active duty military service personnel as they enter active duty. It covers issues such as credit cards interest rates, personal loans, mortgage interest rates, mortgage foreclosure, civil judicial proceedings, automotive leases, life insurance, health insurance and more.

Who May be Entitled to Legal Protections Under the SCRA?

  • Regular members of the U.S. Armed Forces (Army, Navy, Air Force, Marine Corps, and Coast Guard).
  • Reserve and National Guard personnel who have been activated and are on Federal active duty.
  • National Guard personnel under a call or order to active duty for more than 30 consecutive days under section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by Federal funds.
  • Active service members of the commissioned corps of the Public Health Service and the National Oceanic and Atmospheric Administration.
  • Certain United States citizens serving with the armed forces of a nation with which the United States is allied in the prosecution of a war or military action.

What Legal Protections are Servicemembers Entitled To Under the SCRA?

  • The SCRA states that a debt incurred by a servicemember, or servicemember and spouse jointly, prior to entering military service shall not bear interest at a rate above six percent during the period of military service and one year thereafter, in the case of an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage, or during the period of military service in the case of any other obligation or liability.
  • The SCRA states that in a legal action to enforce a debt against real estate that is filed during, or within one year after the servicemember's military service, a court may stop the proceedings for a period of time, or adjust the debt. In addition, the sale, foreclosure, or seizure of real estate shall not be valid if it occurs during, or within one year after the servicemember's military service unless the creditor has obtained a valid court order approving the sale, foreclosure, or seizure of the real estate.
  • The SCRA contains many other protections besides those applicable to home loans.

Where can I find out more about SCRA and the benefits I may be eligible for?