The SCRA or Servicemembers Civil Relief Act aims to ease the financial burdens on active duty military personnel. The federal law covers those in the Space Force, Marine Corps, Coast Guard, Army, Navy, Air Force, National Guard and reserves. It also covers active duty reserve and Guard members and their families. Here are the benefits of the SCRA.

• Reduced interest rate

Most credit card companies and major banks will provide a refund on annual fees and interest for certain financial obligations that the military personnel incurred before his active duty service. Credit card providers will also waive yearly credit card charges. These benefits cover all mortgages, car loans, credit cards and student loans that were acquired before entry into military service.

• Terminate rental leases

Active duty service members can break a lease as long as it was acquired before they joined the military. They can also terminate a lease while they are on active duty if they were deployed to a new area or assignment for 90 days. Service members may get protection against eviction of leased or rented property as well. The family member or service member who got the notice of eviction should submit a request for protection under the Servicemembers Civil Relief Act. If it’s proven that the military personnel’s duties have affected the ability of his family to pay rent on time, the court may order a postponement of eviction for 3 months.

• Terminate automobile leases

Service members can also terminate car leases in certain situations. For example, they can terminate a car lease as long as they got it before joining the military. But for this benefit to apply, he should be on active duty for at least 180 days.

• Foreclosure postponement

No seizure, sale or foreclosure properties for non-payment of pre-service mortgage debts is valid if it’s made within 9 months of or during active duty service. This can protect service members from losing their properties while they are on active duty.

• Deferred income tax

The local and state taxing authorities and the IRS should defer the service member’s income tax due on or before his military service if his ability to pay is affected by his duty. Taxing authorities can’t add any penalty or interest due to this kind of deferral.

• Postpone civil court matters

Active service members who can’t attend an administrative proceeding or civil court action can ask for a 90-day stay or delay in the proceedings. They are automatically qualified for this delay if they follow the requirements. The hearing officer, judge or magistrate can also give them an extra 90-day stay. This protection, however, doesn’t cover criminal administrative or criminal court proceedings.

How to receive SCRA Benefits

Service members or their family members can ask for mortgage relief under the Servicemembers Civil Relief Act. Keep in mind that invoking your rights under the SCRA will not harm your credit score. Lenders can accept certain documents to secure your benefits and confirm military orders. Some of these documents include a copy of the official military orders and a lettersigned by the commanding officerstating yourpersonal information and key dates of military service.