Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act (SCRA) is a federal law that protects eligible, active duty service members if their military service impedes their ability to meet financial obligations incurred before entry into active military service. The SCRA postpones or suspends certain civil obligations so that members of the Armed Forces can better focus on their military responsibilities without adverse financial consequences or stresses for them or their families.

Benefits provided under SCRA may include:

  • Reducing the rate of interest for debts incurred before entering active duty to 6%
  • Protecting service members against default judgments, evictions, mortgage foreclosures, and repossession of property
  • Giving service members the ability to terminate residential and automobile leases
  • Protecting service members against foreclosure

Learn more about the benefits and protections of SRCA by visiting The United States Department of Justice's website.

Eligible Service Members Include:

  • Full-time, active duty members of the Army, Navy, Air Force, Marine Corps, Coast Guard & Space Force

  • Army, Navy, Air Force, Marine Corps or Coast Guard reservists serving on active duty

  • National Guard members in qualifying active service

  • Commissioned officers of the National Oceanic & Atmospheric Administration and Public Health Service


Contact a Local Banker for More Information

FAQs

  • The Servicemembers Civil Relief Act (SCRA) is a federal law providing benefits and protections to individuals engaged in military service so they can focus on their missions without the same amount of financial-related stress as they otherwise might have.
  • The SCRA protects all branches of the U.S. Armed Forces, including the Army, Navy, Marines, Air Force, Coast Guard and Space Force.

    In addition, the SCRA protects:
    • Reservists called to Active Duty
    • Members of the National Guard called to Active Duty pursuant to U.S. Code Title 10 or called to federal active service for more than 30 consecutive days under U.S. Code Title 32 section 502(f)
    • Commissioned officers of the Public Health Service and National Oceanic and Atmospheric Administration engaged in active service
    • U.S. citizens who are serving in the armed forces of a U.S. allied nation during the joint prosecution of a war or military action
    • Retired military personnel
    • Members of the National Guard who haven't been called to Active Duty or who haven't been called to federal active service for a period of more than 30 consecutive days
    • Servicemembers who applied for SCRA, and the request was submitted to TowneBank greater than 180 days after their last day of Active Duty. As an SCRA requirement, a servicemember must apply no later than 180 days after the last day of Active Duty.
  • Please contact a local banker near you or make an appointment for more information.