Soldiers Civil Relief Act

The Soldiers Civil Relief Act allows certain benefits to soldiers who are going on active duty such as Basic Training or deployments. It can really help you save money while you're serving your country. The main criteria is you must state that serving in the military has negatively affected your ability to pay your debts. I've never had a creditor turn down a request yet!

Sample Letter to Creditors/Mortgage Lenders to
Request a Reduction in Interest Rates under the SCRA

Note: The following is a sample only. It is not legal advice of any kind. Any request for a
reduction in interest rates should be sent to the creditor via CERTIFIED MAIL, RETURN
RECEIPT REQUESTED to comply with the SCRA and provide the sender with proof it was

[Service member’s Return Address]

Dear [Sir or Madam]:

I am currently obligated to your company for a loan in the amount of approximately [$],
at an interest rate of [%]. This obligation was entered into on [DATE]. At that time I was not on
active duty in the armed services.

I have now entered [or been notified that I will enter] active military service in the U.S.
[BRANCH OF SERVICE] on [DATE]. A copy of my orders is enclosed. My entry into active
military service materially affects my ability to meet my repayment obligation.

The Service Member’s Civil Relief Act (50 U.S.C. App. §§ 501-596) limits the amount
of interest military service members entering active duty may be charged on any existing debt to
6% or less of annual interest. The law requires that this interest rate apply to the outstanding
balance of the obligation, beginning the date of entry into active military service, and that the
rate is maintained for the duration of active service. This interest includes service charges,
renewal charges, fees, or any other charges.

Under 50 U.S.C. App. § 527(a)(2) any excess interest above 6% must be forgiven, not
accrued. The periodic repayment amount must be recalculated to reflect this reduction. Please
ensure that your records in this matter reflect the rate reduction required by law and that any
excess charges incurred during the period of my active service are withdrawn.

Please note that Service Member’s Civil Relief Act also limits the manner in which you
may enforce this obligation, including limiting rights to repossession or foreclosure.

Thank you for your attention in this matter. I can be reached at the address above with
any questions you may have.


[Service member's name, rank and branch of service]