How do the SCRA apply to deployment of active duty miltary?
January 17, 2010 9:51 AM   Subscribe

Help me understand how the Servicemembers Civil Relief Act (SCRA) applies to active duty military being deployed specific to installment loans.

After extensive internet research, I haven't been able to figure out exactly how installment loans are affected by deployment of active duty military who obtained installment loans during their tenure as military. The SCRA only seems to speak to deployment when referencing auto loans, real estate leases and cell phone contracts. What I can't find is how deployment relates to installment loans.

I can see the clear explanation of interest rate relief for loans obtained prior to enlistment, but I can't figure out if deployment of active duty constitutes an interest rate relief if the loan was obtained after enlistment.
posted by Zophi to Work & Money (3 answers total)
You cannot get interest rate relief on loans obtained after enlistment via SCRA. You're better off going to your relief agency of choice (Navy-Marine Corps Relief, Army Emergency Relief, Air Force Aid, Coast Guard Mutual Assistance) and getting a short term loan from them to replace the installment loan.

Also, inform your chain of command if you're having trouble paying things off. Don't go it alone, especially if you have a security clearance. Financial difficulties are the quickest way to lose your clearance.
posted by squorch at 3:40 PM on January 17, 2010

Remember that a threshold requirement of the SCRA is that it only applies to servicemembers who are on "active" duty. If you are a member of a state guard unit, your "enlistment" date is different than your date of being on "active" duty. In other words, it is quite possible that a guard member entered into an installment contract after enlisting in the guard, but before he/she is placed on "active" duty. It's only the "active" duty status that triggers the potential for SCRA protections. You didn't specify if you are regular army/navy/etc.., or guard, so I thought I would point this detail out.
posted by webhund at 7:22 PM on January 17, 2010

Sorry about not specifying. Posted for a friend who is enlisted in the Marine Corps.
posted by Zophi at 7:36 PM on January 17, 2010

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