Sponsors (19)
The bill meaningfully expands and clarifies SCRA protections—lowering interest and easing access for service members and veterans—while imposing modest administrative burdens on government and creditors that could be passed through to other borrowers.
Servicemembers and veterans will pay lower interest on more of their debts because creditors must apply the 6% SCRA cap to all obligations to a creditor (including retroactively to the date called to service), reducing accumulated interest and borrowing costs.
Servicemembers can more easily invoke SCRA protections because creditors must accept required documents online, by mail, or fax at the servicemember's election, lowering procedural barriers to relief.
Servicemembers receive immediate and repeated benefit notifications (on entering active duty, when joining reserves, and upon mobilization), and DoD training on SCRA protections is standardized, increasing awareness so more service members access protections.
Financial institutions will face increased administrative costs to identify, reprice, and apply the 6% cap to additional accounts and to implement intake systems (online/fax/mail), which may reduce lender profitability and complexity.
Some non‑military borrowers could face higher costs if creditors pass compliance and repricing costs to customers via higher fees or interest rates.
DoD and other agencies will incur modest administrative costs and added workload to update curricula, deliver additional notifications, and comply with any new reporting or paperwork mandates.
Based on analysis of 4 sections of legislative text.
Adds SCRA content to military financial training, requires SCRA notices at enlistment and mobilization for reservists, and forces creditors to apply the 6% cap across related debts and accept online/mail/fax documents.
Expands protections and notice requirements under the Servicemembers Civil Relief Act (SCRA) and adds SCRA content to required military financial literacy training. It clarifies that when a creditor applies the 6% SCRA interest-rate cap to a servicemember's debt, the creditor must apply that cap to other obligations the servicemember owes to the same creditor and must provide ways (online, mail, fax) for the servicemember to submit documents to invoke the cap, effective as of the date the member is called to service. The bill also requires SCRA benefit notifications at initial entry to service and additional notifications for reserve members when they enter reserve status and whenever mobilized or individually ordered to active duty for more than 30 days.
Introduced May 1, 2025 by April McClain Delaney · Last progress May 1, 2025