Texas service members have been over charged on their car loans, mortgages, credit cards, and other types of debt due to inflated interest rates. Under the Service Members Civil Relief Act, service members are only entitled to interest rate caps on debts acquired before they joined the military. If Texas becomes a Key Provision state service members will be entitled to the same interest rate caps on debts acquired throughout their time of service as well.
The SCRA limits the amount of interest that a creditor can charge a service member on a financial obligation that was created prior to the borrower’s entry into military service. The SCRA limits this interest to no more than 6 percent per year and requires forgiveness of any interest in excess of that ceiling. As of right now this only applies to debts that Texas service members acquired before their time in service starts.
Texas has a rich history of supporting its service members. In a time where many people are losing their jobs and struggling to make ends meet, what could be a better way to show Texas service members some support than by providing them with the tools to alleviate some financial hardships in such a trying time in our countries history?