In 2004 Congress passed the Servicemembers Civil Relief Act (SCRA), amending an earlier act from 1940. The act provides significant assistance to members of the military who are deployed overseas.
For instance, the period of active duty military service may not be included in computing time periods in which military members may bring a claim (or be sued for a claim). Importantly, however, this “time out” for running of statutes of limitations does not apply to family members or dependents.
Of even more importance these days to our military on active duty is the 2008 amendments to the SCRA which limits the legal interest rate on all liabilities of servicemembers to 6 per cent, including for mortgages! This means that interest on mortgages above 6% is not just deferred, it is forgiven! Reduction of credit card payments can be dramatic. Under the Act, “interest” includes such things as service charges, renewal charges, fees and any other charge except bona fide insurance. But this relief is not automatic: a service member must provide his or her creditor with written notice of mobilization, along with a copy of the active duty military orders, to start the application of the Act. But, on the other hand, a servicemember has up to 180 days after his or her release from active duty to give this notice.
