Service Member Civil Relief Act

The Service Members Civil Relief Act applies only to loans to persons on active duty service that were made prior to entry into service and applies only if active service materially affects the debtor’s ability to repay the loan. The act does not cancel the obligation to repay but provides protection against legal action to force payment or to repossess loan collateral held by the debtor as security for the loan. The primary protection provided by the act is a rollback of interest rates charged on the loan contract to 6.00% (Annual Percentage Rate).