Members of the military are protected under the Servicemembers Civil Relief Act (SCRA). The SCRA is a federal law that provides protections for members of the military or armed forces, reservists, and members of the National Guard while on active duty, as well as their spouses and dependents. The protection begins on the date of entering active duty and generally terminates within 30 days to 1 year after discharge, depending on the specific protection.
The SCRA allows servicemembers to devote full attention to military service by minimizing their civil obligations while on active duty. SCRA provides protections from foreclosure, vehicle repossession, cell phone contract obligations, and other protections. In regards to Scratch loans, the SCRA caps the interest rate that applies to a servicemember’s loans while on active duty. The interest rate cap is 6% and lasts as long as the servicemember is on active duty.
We check the Defense Manpower Data Center () site monthly to determine eligibility. This list can sometimes be delayed or incorrect. As soon as we receive information from the DMDC showing that one of our borrowers is on active duty, we automatically apply the interest rate cap and backdate it to begin the date that the servicemember entered active duty. We retroactively refund the servicemember any excess interest that he or she paid while on active duty.
In some cases, such as when a borrower’s active duty status is not showing up on the DMDC website, we may ask for a borrower to send us documentation to verify eligibility. Acceptable documents include, but are not limited to:
- Military Enlistment/Reenlistment Contract
- Leave and Earnings Statement (LES)
- Letter from your commanding officer
- Deployment or active duty orders
- Permanent Change of Station (PCS) documentation
- Certificate of Release or Discharge from Active Duty (DD Form 214/5 Series)
- Any other document on military letterhead confirming
If required to send, please use the following address via USPS:
Scratch Services, LLC
P.O. Box 411285
San Francisco, CA 94141-1285
If you have any questions regarding your eligibility or status please.