Improving SCRA Benefit Utilization Act

This bill helps military members and their families learn about and use money protections under a federal law called the Servicemembers Civil Relief Act. It adds this topic to the financial training troops already receive, including how interest rate limits work during service. It also requires clear notices about these benefits at key moments: when someone first joins the military, when they join the Reserve, and any time a Reservist is called to active duty for more than 30 days.

The bill also tells banks and other lenders to automatically apply the legal maximum interest rate to all of a servicemember’s debts taken out before service, starting from the date the person is called to duty—even if the member’s notice doesn’t list every account with that lender. Lenders must let servicemembers send any required paperwork online, by mail, or by fax.

• Who is affected: Active-duty members, Reservists, their families, and their banks/lenders.
• What changes: Training includes these protections; members get notices at key times; lenders must apply the interest cap across all pre-service debts and accept documents online, by mail, or fax.
• When it applies: At joining, when entering the Reserve, when mobilized over 30 days, and from the date a member is called to duty for interest limits on pre-service debts.