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What is the SCRA?
SCRA is short for The Servicemembers Civil Relief Act. This law protects your financial and legal affairs while you are on active duty military service. For example, SCRA requires your creditors to provide certain relief from debt that you incurred before entering active duty. It also suspends some legal actions against you if the action will interfere with your military service.
The interest rate cap protection is one of the major benefits of the SCRA. If you are eligible for SCRA benefits, the interest rate on debts you incurred prior to your military service will be reduced to 6% per year and the required payments will also be reduced to reflect this lower interest rate.