The Servicemembers Civil Relief Act (SCRA) is a federal law that suspends or limits certain civil and financial obligations of people in military service, from interest rates and leases to evictions, foreclosures, repossessions and default judgments. Violations can lead to Justice Department enforcement actions and private lawsuits, including class actions.
Quick Answer
The Servicemembers Civil Relief Act, codified at 50 U.S.C. §§ 3901–4043, protects people in military service from certain civil and financial consequences of their service. It caps interest at 6% on debts incurred before service, requires an affidavit and court safeguards before a default judgment can be entered against an absent servicemember, and requires a court order before covered evictions, foreclosures and repossessions. It also lets servicemembers end some residential and vehicle leases early. The Justice Department enforces the law, and since 2010 servicemembers have been able to sue for damages themselves, individually or as a class.
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What the SCRA Is
The Servicemembers Civil Relief Act is a federal law that adjusts how civil legal and financial obligations apply to people serving in the military. Its premise is that a servicemember who is deployed, training or stationed far from home may be unable to respond to a lawsuit, keep up with a lease or monitor a loan the way a civilian could, and that creditors and courts should account for that.Congress enacted the current law on December 19, 2003, as a rewrite of the Soldiers’ and Sailors’ Civil Relief Act of 1940. It now appears in Title 50 of the U.S. Code, beginning at section 3901. The SCRA applies in civil matters in federal and state courts and administrative agencies; it does not apply to criminal cases.
The SCRA does not cancel debts. It changes the terms on which certain debts can be collected and certain property can be taken, and it gives courts power to pause cases or adjust obligations when military service materially affects a servicemember’s ability to meet them.
Who the SCRA Covers
The Act defines a servicemember as a member of the uniformed services, and its protections attach during a period of military service. That includes:- Active duty members of the Army, Navy, Air Force, Marine Corps, Space Force and Coast Guard.
- National Guard members called to active service for more than 30 consecutive days under 32 U.S.C. § 502(f) to respond to a national emergency declared by the President and supported by federal funds.
- Commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration on active service.
- Periods when a servicemember is absent from duty because of sickness, wounds, leave or another lawful cause.
Under section 3917, members of the reserve components gain many of the Act’s protections on the date they receive orders to report, not the date they report. Some provisions also protect a servicemember’s dependents, or co-borrowers and co-lessees on a joint obligation.
The Main SCRA Protections
The SCRA contains many specific provisions. These are the ones that appear most often in lawsuits and government enforcement actions.6% interest rate cap
Under section 3937, a debt incurred before military service may not carry interest above 6% a year during service, and for mortgages and similar secured obligations, for one year after service ends. Interest above 6% is forgiven, not deferred, and monthly payments must be reduced accordingly. The servicemember provides written notice and a copy of orders no later than 180 days after service ends, and the reduction applies back to the date the servicemember was called to service. A court can relieve a creditor of the cap if military service has not materially affected the servicemember’s ability to pay.Default judgments and the military affidavit
Under section 3931, when a defendant does not appear in a civil case, the plaintiff must file an affidavit stating whether the defendant is in military service before the court can enter a default judgment. If the defendant appears to be in service, the court must appoint an attorney to represent the servicemember before entering judgment, and must stay the case for at least 90 days in certain circumstances. Knowingly filing a false affidavit is a federal crime punishable by up to one year in prison. A default judgment entered against a servicemember can be reopened if service materially affected the ability to defend and the servicemember has a meritorious defense, on an application filed within 90 days after service ends.Stays of proceedings
Under section 3932, a servicemember who has received notice of a civil case, including a child custody case, can ask the court to pause it for at least 90 days. The request must include a letter or other communication explaining how current military duties materially affect the ability to appear and when the servicemember will be available, plus a letter from the commanding officer stating that current duty prevents an appearance and military leave is not authorized. The request does not waive any defense, including lack of personal jurisdiction.Evictions
Under section 3951, a landlord may not evict a servicemember or the servicemember’s dependents from a primary residence during military service without a court order, as long as the monthly rent is below a statutory ceiling. The ceiling started at $2,400 a month and is adjusted each year for housing inflation, with the Defense Department publishing the current figure in the Federal Register. The court can stay the eviction or adjust the lease when service materially affects the ability to pay rent.Repossessions and installment contracts
Under section 3952, if a servicemember paid a deposit or installment on a purchase or lease contract, including a motor vehicle, before entering military service, the creditor may not end the contract for nonpayment or take back the property during service without a court order. OCA’s explainer on wrongful vehicle repossessions of military members covers this provision in detail.Mortgages and foreclosures
Under section 3953, a sale, foreclosure or seizure of property for breach of a mortgage that originated before military service is invalid if it occurs during service or within one year afterward, unless a court orders it or the servicemember signed a valid waiver. Courts may also stay foreclosure cases or adjust the obligation. See OCA’s explainer on SCRA foreclosure protection.Lease terminations
Under section 3955, a servicemember may end a residential lease after entering military service, or after receiving orders for a permanent change of station or a deployment of at least 90 days. A motor vehicle lease may be ended in narrower circumstances, such as orders of at least 180 days, a permanent change of station outside the continental United States, or a deployment of at least 180 days. Termination requires written notice and a copy of the orders, and the lessor may not charge an early termination fee, although rent or lease amounts owed up to the effective date, along with certain taxes and wear charges, remain due.Penalties for knowing violations
The eviction, repossession and foreclosure provisions each make a knowing violation a federal misdemeanor punishable by a fine, up to one year in prison, or both.Waiving SCRA Rights
A servicemember can give up SCRA protections, but only under the conditions in section 3918. A waiver that affects repossession, foreclosure, lease rights or similar protections must be in writing, made during or after the period of military service, and executed as a separate document from the underlying contract. It must be printed in at least 12-point type and must specify the legal instrument it applies to. A clause buried in an original loan agreement signed before service does not meet those requirements.Free settlement alerts
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How the SCRA Is Enforced
The Justice Department’s Civil Rights Division enforces the SCRA under section 4041. The Attorney General may sue anyone engaged in a pattern or practice of violations, or whose violation raises an issue of significant public importance. A court may order monetary damages for the people harmed and civil penalties, set in the statute at up to $55,000 for a first violation and $110,000 for each later violation. People harmed by the violation may ask to intervene in the government’s case.Since October 13, 2010, section 4042 has also given people harmed by an SCRA violation a private right to sue for equitable or declaratory relief and monetary damages, and allows a court to award the costs of the action, including a reasonable attorney fee, to a prevailing servicemember.
The SCRA in Class Actions and Settlements
A 2019 amendment to section 4042 provides that a person harmed by an SCRA violation may bring or join a class action under the Federal Rules of Civil Procedure, regardless of any earlier agreement to the contrary. That language is aimed at arbitration clauses and class action waivers in consumer contracts, which might otherwise keep SCRA claims out of court or limit them to individual proceedings.Much of the money recovered for servicemembers has come through Justice Department settlements with lenders, servicers and landlords rather than through private class actions. Those settlements typically involve repossessions, foreclosures, interest charged above the 6% cap, default judgments obtained without proper affidavits, and fees charged when servicemembers ended leases early. They commonly require the company to pay each affected servicemember, correct credit reports, and change how it checks military status, most often through the Defense Manpower Data Center database.
SCRA claims also surface in ordinary consumer settlements. A class action release sometimes carves SCRA claims out of the claims being resolved, which preserves a class member’s separate right to pursue them.
Frequently Asked Questions
Does the SCRA erase debts owed by servicemembers?
No. The SCRA does not cancel debts. It limits interest on debts taken on before military service to 6%, requires court involvement before certain evictions, foreclosures, repossessions and default judgments, and lets courts pause or adjust obligations when military service materially affects a servicemember’s ability to meet them.
Does the SCRA 6% interest cap apply to loans taken out during military service?
No. Section 3937 applies to obligations incurred before the servicemember entered military service. Loans taken out while already on active duty are not covered by the cap, although other federal laws, such as the Military Lending Act, regulate some credit extended to servicemembers.
Can servicemembers bring class actions under the SCRA?
Yes. Section 4042 has allowed people harmed by an SCRA violation to sue since 2010, and a 2019 amendment states that they may bring or join a class action under the Federal Rules of Civil Procedure regardless of any earlier agreement to the contrary.
How does a lender or landlord check whether someone is on active duty?
Creditors commonly search the Defense Department’s Defense Manpower Data Center (DMDC) database. The SCRA itself refers to DMDC information in its interest-rate section, and a plaintiff seeking a default judgment must file an affidavit stating whether the defendant is in military service.
What is the difference between the SCRA and the Soldiers’ and Sailors’ Civil Relief Act?
The Soldiers’ and Sailors’ Civil Relief Act of 1940 was the predecessor law. Congress rewrote and renamed it as the Servicemembers Civil Relief Act on December 19, 2003. Courts sometimes still cite older decisions decided under the 1940 Act.
Sources
- 50 U.S.C. chapter 50 — Servicemembers Civil Relief Act, full text (Cornell Legal Information Institute)
- 50 U.S.C. § 3911 — definitions of servicemember and military service
- 50 U.S.C. § 4042 — private right of action, including the class action provision
- U.S. Department of Justice — Servicemembers and Veterans Initiative
