We call on Congress to amend the Servicemembers Civil Relief Act (SCRA) to extend the 6% interest rate cap to all debt incurred by military members during active duty, not just debt taken on before service. This overdue reform would provide lasting financial protection to those who serve, reduce economic stress on military families, and strengthen our national defense.

Every day, America’s service members put their lives on the line to defend our freedoms. Yet the financial protections they receive under the Servicemembers Civil Relief Act (SCRA) fall short of honoring that sacrifice.

Currently, the SCRA caps interest rates at 6%, but only for debts incurred before entering active duty. This outdated provision fails to protect the vast majority of service members, who typically join the military young and accumulate debt during their service, not before it.

We propose a simple, fair, and impactful change:

Amend the SCRA to apply the 6% interest rate cap to all qualifying debt: credit cards, auto loans, personal loans, and more, incurred from the date of enlistment, and maintain that cap for the life of the debt.

Why This Matters:

• Only 1% of Americans serve in the military. The financial impact on lenders would be minimal, but the benefit to service members would be life-changing.
• Over 50% of active-duty military report “just getting by financially” A. Many rely on high-interest credit cards or payday loans to cover basic needs during deployments, relocations, or emergencies.
• Lower interest rates increase disposable income, reduce default risk, and improve credit scores—leading to stronger long-term financial health B C.
• Economic ripple effects: More disposable income means more spending in local economies, especially in military towns. Studies show that a 1% drop in interest rates can boost GDP by 0.5–0.8% within a year C.

Anticipated Criticisms & Our Response:

“This will cost lenders too much.” With only 1% of Americans serving, the impact is negligible.
The social return on investment, reduced defaults, stronger communities, and improved military readiness, far outweighs the cost.

“It could encourage over-borrowing.” 
On the contrary, financial stress is a leading cause of poor decision-making. Lower, predictable interest rates promote responsible borrowing and budgeting. 

“The current law already helps.”
Only for those with pre-service debt. Most service members join with little or no debt and are excluded from this benefit entirely. 

---

 Sign This Petition If You Believe:

• Service members deserve full financial protection from the moment they raise their right hand.
• No one should be penalized for building credit or managing emergencies while serving their country.
• It’s time to modernize the SCRA to reflect the real financial lives of today’s military.