S. 1550

Improving SCRA Benefit Utilization Act of 2025

Shown here: Introduced in Senate (2025-05-01)

To amend title 10, United States Code, to include training regarding financial protections under the Servicemembers Civil Relief Act in certain financial literacy training programs for members of the Armed Forces, and for other purposes.

1. Short title

This Act may be cited as the “Improving SCRA Benefit Utilization Act of 2025”.

2. Financial literacy training regarding the Servicemembers Civil Relief Act

Section 992 of title 10, United States Code, is amended—

(1) in subsection (a)(1)—

(A) by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively; and

(B) by inserting, after subparagraph (C), the following new subparagraph (D):

(D) consumer financial protections afforded to members and their dependents under the law, including protections regarding interest rate limits under section 207 of the Servicemembers Civil Relief Act (50 U.S.C. 3937);

(2) in subsection (d)(1), by inserting “(including with regards to knowledge and use of protections regarding interest rates under section 207 of the Servicemembers Civil Relief Act (50 U.S.C. 3937))” after “preparedness”.

3. Notification of benefits under the Servicemembers Civil Relief Act to servicemembers called or ordered to active duty or to active service

Section 105 of the Servicemembers Civil Relief Act (50 U.S.C. 3915) is amended—

(1) by striking the period at the end and inserting “, including—”; and

(2) by adding at the end the following new paragraphs:

(1) at the time a person first enters military service; and
(2) in the case of a person who is a member of a reserve component—
(A) at the time the person first enters service in the reserve component; and
(B) at any time when the person is mobilized or otherwise individually called or ordered to active duty for a period of more than 30 days.

4. Financial institution obligation to apply maximum rate of interest on all servicemember debts incurred before military service

Section 207(b) of the Servicemembers Civil Relief Act (50 U.S.C. 3937) is amended—

(1) in paragraph (2)—

(A) by striking “the creditor shall treat the debt in accordance with subsection (a), effective as of the date on which the servicemember is called to military service.” and inserting “the creditor shall—”; and

(B) by adding at the end the following new subparagraphs:

(A) treat the debt in accordance with subsection (a), effective as of the date on which the servicemember is called to military service; and
(B) treat any other obligation or liability of the servicemember to the creditor in accordance with subsection (a), whether or not such obligation or liability was specifically mentioned in a notice provided by the servicemember under paragraph (1)(A).

(2) by adding at the end the following new paragraph:

(3) Submission of documents
A creditor shall provide all necessary mechanisms to ensure that a servicemember is able to submit any documents required in order for an obligation or liability of the servicemember to be subject to the interest rate limitation in subsection (a) either online, by mail, or by fax, at the election of the servicemember.

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