Sponsors (19)
The bill strengthens and broadens SCRA protections and standardizes notice/training—giving military members clearer, broader financial protections and easier ways to invoke them—at the cost of added administrative burdens for the military and creditors and potential indirect costs or reduced credit access for some consumers.
Servicemembers (including active duty, reservists when mobilized, and veterans) will have virtually all creditor obligations subject to the 6% SCRA interest-rate cap, reducing interest costs and lowering risk of default.
Servicemembers will receive clearer, standardized information (training and written notices at key points) about SCRA rights, increasing awareness and ability to invoke legal protections against predatory financial practices.
Broadening the safe‑harbor and clarifying coverage reduces disputes with creditors over which accounts are covered, lowering legal and administrative burdens for servicemembers seeking relief.
Creditors and financial institutions will face higher compliance and administrative costs to identify and apply the 6% cap across all obligations, with potential operational burdens.
Some creditors may pass compliance costs to other customers through higher fees or interest, modestly increasing borrowing costs for non‑servicemember consumers and taxpayers.
Creditors might preemptively delay, restrict, or deny credit to servicemembers to avoid administrative complexity, reducing credit availability for the people the law intends to protect.
Based on analysis of 4 sections of legislative text.
Expands consumer protections and notice rules under the Servicemembers Civil Relief Act (SCRA), requires more SCRA-related financial literacy training for service members, and obligates creditors to apply the 6% SCRA interest cap more broadly and accept documentation online, by mail, or by fax. It clarifies when service members — including reservists — must receive written notice of their SCRA benefits and makes procedural changes to training content requirements. The bill affects military personnel and their families (by strengthening protections and notice timing), and financial institutions and other creditors (by creating additional compliance duties and documentation channels). It does not appropriate new funds or change tax law; effective dates are not specified in the text provided.
Adds SCRA protections to required military financial training, clarifies notice timing for servicemembers/ reservists, requires creditors to apply the 6% cap to all obligations and accept online/mail/fax documentation.
Introduced May 1, 2025 by April McClain Delaney · Last progress May 1, 2025