Sponsors (19)
Adds SCRA protections to required military financial training, expands written notice timing for reservists, and requires creditors to apply the 6% SCRA interest cap to all debts they hold and accept documentation online/mail/fax.
Official title: To amend title 10, United States Code, to include training regarding financial protections under the Servicemembers Civil Relief Act in certain financial literacy training programs for members of the Armed Forces, and for other purposes.
Introduced May 1, 2025 by April McClain Delaney · Last progress May 1, 2025
The bill strengthens servicemembers' practical access to and awareness of SCRA protections (including a broader 6% interest cap and standardized notices/training) at the cost of modest federal administrative burden and higher compliance costs for lenders that could be passed to other borrowers or reduce credit access for some servicemembers.
Servicemembers (and their dependents) will receive expanded training and written notices about SCRA protections when entering service or reserve/mobilization, improving their awareness and ability to avoid unlawful interest charges and assert legal rights.
Servicemembers and veterans will have all creditor obligations capped at 6% interest even if not listed in a notice, reducing interest costs and lowering the risk of defaults or financial hardship.
Servicemembers can submit required SCRA documentation online, by mail, or by fax while deployed or mobilized, making it easier to invoke protections in practice.
The Department of Defense and service Secretaries will face added administrative duties and modest implementation costs to update curricula, train instructors, and track and deliver notices at multiple points.
Financial institutions will incur higher compliance and administrative costs to apply a universal 6% cap across all obligations, and they may pass some of those costs to other customers through higher fees or interest.
Some creditors may preemptively delay, limit, or tighten credit to servicemembers to avoid administrative complexity, potentially reducing credit access for the very population the bill intends to protect.
Based on analysis of 4 sections of legislative text.
Expands protections and awareness of Servicemembers Civil Relief Act (SCRA) rights for active-duty and reserve members by adding SCRA consumer protections (including the 6% interest limit) to required financial literacy training, requiring written SCRA notice at specific entry and mobilization points, and obligating creditors to apply the 6% interest cap to all obligations a creditor holds for a servicemember while accepting required documentation online, by mail, or by fax. The bill clarifies timing for written notice to reservists (initial reserve entry and whenever mobilized or ordered to active duty over 30 days) and creates a creditor duty to treat all a servicemember’s debts with that creditor under the SCRA rate limit regardless of whether each debt was individually listed in the servicemember’s notice.