If you're on active duty or have served, two federal laws protect you from financial hits that would destroy a civilian. SCRA (Servicemembers Civil Relief Act, 50 USC §3901+) covers debts incurred before you went on AD. MLA (Military Lending Act, 10 USC §987) covers consumer credit incurred during AD.
Both are dramatically under-used. The Department of Justice estimates that fewer than 30% of eligible service members claim the 6% interest cap. The Amex Platinum annual fee (now $895) gets waived for AD under SCRA, and most platinum-holding service members never ask.
This is the practical guide. Each protection has its own trigger, its own form or letter, and its own enforcement pathway.
SCRA, the 6% interest cap (the headline protection)
For debts incurred BEFORE you entered active duty, lenders must cap interest at 6% during your active service. This is the single highest-dollar SCRA protection.
Covers:
- Mortgages
- Credit cards
- Car loans
- Student loans (federal AND private, federal Direct Loans made on/after Oct 1, 2008 drop to 0% while you serve in a hostile-fire or imminent-danger area, capped at 60 months)
- Personal loans
- Most installment debts
How to claim:
- Write a letter (or email) to each pre-service lender invoking SCRA
- Include a copy of your active duty orders
- Lender must reduce the rate to 6% retroactive to your AD start date AND forgive (not just defer) the interest above 6%
That last part matters. SCRA isn't a deferment, interest above 6% is permanently forgiven. Most servicers handle this by recalculating your loan as if it had been at 6% from your AD start date.
The cap continues for active service + 1 year on mortgages, active service only on other debts.
DOJ enforces this aggressively. Major banks have settled for millions over SCRA violations. If a lender refuses your written request, file a complaint with the CFPB Office of Servicemember Affairs at consumerfinance.gov/military.
SCRA mortgage protection, the foreclosure freeze
Pre-service mortgages cannot be foreclosed non-judicially during AD or for 12 months after. State foreclosure rules don't override this. Even in states that normally allow non-judicial foreclosure, you get a court order requirement.
Combined with the 6% cap and SCRA's right to a stay of judicial proceedings (below), this is the strongest civilian-life protection in federal law for AD members.
SCRA judicial stay, pause any civil court case
If you're an AD member named in a civil court proceeding (divorce, debt collection, eviction, child custody, traffic), you can request a mandatory 90-day stay of the proceeding. Court must grant it on a written request showing your military duty materially affects your ability to appear.
Additional stays available at court discretion (and routinely granted for deployments).
Submit a letter to the court invoking 50 USC §3932, attach orders, and state how your duty prevents appearance. The court has no discretion on the initial 90 days, that's a mandatory grant.
SCRA default judgment reopening, undo a judgment entered while you were deployed
If a civil court entered a default judgment against you during your AD service or within 60 days after, and you had a meritorious defense and military duty prevented you from appearing, you can reopen the judgment by motion within 90 days of leaving active duty.
This is huge for service members who get sued in default while overseas, credit card lawsuits, evictions, debt collection, and can't respond in time. SCRA lets you wipe out the judgment and get a real hearing.
50 USC §3931. File a motion in the court that entered the judgment.
SCRA vehicle lease termination
You can terminate a pre-service vehicle lease without penalty when you enter AD for 180+ days. Already-AD members can terminate when ordered to PCS overseas or to a 180+ day deployment.
No early-termination fee. Lessor must refund any prepaid lease amounts.
How: written notice + copy of orders to the lessor. They have 60 days to refund.
50 USC §3955.
SCRA rental lease + eviction protection
For residential leases under the SCRA monthly rent cap ($10,542.60/mo for 2026, adjusted annually for inflation), AD members and dependents cannot be evicted without a court order during active service. Landlords trying to lock you out or terminate utilities without going through court are violating SCRA.
You can also terminate a residential lease on entry to AD or on receipt of PCS orders / 90+ day deployment orders. Written notice + orders, effective 30 days after the next rent due date.
If your landlord refuses, file a complaint with the state attorney general (most have Servicemember Affairs units) and DOJ Servicemembers Initiative.
SCRA service contract termination
The Veterans Auto and Education Improvement Act of 2022 (PL 117-333, signed January 5, 2023, codified at 50 USC §3956) lets you cancel certain service contracts without penalty when you deploy or PCS. Covered contracts:
- Cell phone and telephone service
- Internet service
- Cable and satellite TV
- Gym and fitness memberships
- Home security / alarm-monitoring services
Note: standalone streaming subscriptions (Netflix, Spotify, etc.) are not named in the statute, though some get bundled into a covered cable or internet contract.
Trigger: AD member on PCS orders or a 90+ day deployment. Give written notice with a copy of your orders. Providers must refund unused prepaid balances. If a provider balks, cite PL 117-333 / 50 USC §3956.
Military-spouse professional license portability
Also under the Veterans Auto and Education Improvement Act of 2022 (PL 117-333, §19, codified at 50 USC §4025a, effective January 2023): when a service member relocates on military orders, a professional license (nursing, teaching, real estate, etc.) held by the service member or their spouse and in good standing generally carries over to the new duty-station state, subject to the statute's conditions.
If you're a military spouse PCS'ing and your destination state is slow-walking your license recognition, this is your federal law to cite.
SCRA tax payment deferment
If your ability to pay federal or state income tax is materially affected by your military service, you can defer payment for up to 180 days after end of service, with no interest or penalty.
50 USC §3991. Apply to IRS or your state revenue department, attach orders, explain how service affected your ability to pay (deployment, training, etc.).
This is rarely used because most service members pay through W-2 withholding, but it's available if you have an estimated tax burden you can't meet due to AD.
MLA, the 36% MAPR cap on consumer credit incurred DURING AD
The Military Lending Act caps the Military Annual Percentage Rate (MAPR) at 36% on covered consumer credit incurred during active duty. Covers:
- Credit cards
- Personal loans
- Auto loans
- Vehicle title loans
- Payday loans
- Refund anticipation loans
The MAPR is broader than APR, it includes finance charges, credit insurance, application fees, and certain participation fees. The 36% cap is the all-in cost, not just interest.
DoD operates a Manpower Data Center system that lets lenders check active-duty status before extending credit. Lenders are required to check; most major lenders do this automatically.
You don't have to "invoke" MLA, it applies automatically to AD members. But if a creditor's actually charging you over 36% MAPR, that's evidence of a violation. File a CFPB OSA complaint.
The Amex Platinum (and other premium card) annual fee waiver
This is the highest-dollar single SCRA benefit most platinum holders don't claim.
American Express waives the annual fee on all consumer cards (including Platinum at $895, Gold $325, etc.) for AD members under SCRA (pre-service cards) and MLA (cards opened during AD). They also suspend late fees, overlimit fees, and returned-payment fees.
How to claim:
- Call Amex SCRA line: 800-253-1720
- Or apply online at americanexpress.com/scra
- Submit orders or DoD verification
- Amex applies the waiver retroactively to your AD start date AND going forward for the duration of service
If you have an Amex Platinum or Gold and you're on AD, you should be paying $0 in annual fees. Period. The MLA-side applies automatically for cards opened during AD; the SCRA-side requires you to apply for pre-service cards.
Other major issuers also waive fees under SCRA but require you to apply. Chase, Citi, Capital One, Discover all have SCRA programs. Apply to each issuer separately.
The CFPB Office of Servicemember Affairs, your complaint route
If a lender refuses to honor SCRA or MLA, file a CFPB OSA complaint at consumerfinance.gov/military. CFPB tracks military consumer-finance complaints with statutory authority under Dodd-Frank §1013(e) and routinely gets results.
Specifically for student loans: CFPB has a Private Student Loan Ombudsman within OSA that handles federal and private student loan disputes for service members.
State AG offices also have Servicemember Affairs units in many states (NC, VA, IL, WA, NY, others). Stack federal CFPB + state AG for maximum leverage.
Your SCRA + MLA action checklist
- List every pre-service debt: mortgage, car loan, credit cards, student loans, personal loans
- Write each lender invoking SCRA 6% cap, include orders
- Confirm each lender forgave (not deferred) interest above 6%
- If you have a premium credit card, apply for annual fee waiver under SCRA
- Update mortgage holder, landlord, and major creditors on your AD status to trigger foreclosure / eviction / lease protections
- If you're sued in civil court during AD, file a §3932 stay motion immediately
- If a default judgment was entered against you during deployment, file a §3931 motion to reopen within 90 days of returning
- If you have pre-service vehicle lease and entered AD for 180+ days, terminate without penalty
- If you're PCS'ing or deploying 90+ days, terminate covered service contracts (cell phone, internet, cable/satellite TV, gym, home security) without penalty
- File CFPB OSA complaint at consumerfinance.gov/military for any lender that refuses to honor SCRA/MLA
These protections exist because Congress recognizes military service creates financial situations civilians don't face. They only work if you claim them.