The Servicemembers Civil Relief Act (SCRA) was created to add an additional layer of financial protection for those entering, deployed or called to active duty. Its purpose is to relieve these individuals from the difficulties tied to certain financial and legal obligations.
This means that certain judicial and administrative proceedings and transactions may be temporarily suspended or postponed. Legal protections begin on the date of active duty and terminate during a period of 30 to 90 days after discharge from active duty.
Legal Compliance & The SCRA
There are five important points for our clients to remember under the SCRA:
- Clients that have received a written notice and a copy of military orders calling the servicemember to military service, and any orders further extending military service, are prohibited from charging interest in excess of 6% while the servicemember is on active military service, and for one year following discharge from active duty. The servicemember must, however, provide a written notification of active duty status.
To continue reading, download our complimentary white paper, “Legal Compliance & The SCRA.” This white paper provides valuable insight into the SCRA and discusses all five key elements you should remember when dealing with servicemember cases.