S 1550 — Improving SCRA Benefit Utilization Act of 2025

Summary

Improving SCRA Benefit Utilization Act of 2025This bill expands interest rate protections under the Servicemembers Civil Relief Act (SCRA) and requires expanded training for and outreach to servicemembers regarding financial literacy and SCRA protections.The SCRA caps the maximum interest charged on any debt incurred by a servicemember prior to entering active duty at 6% annually if the servicemember's ability to pay is materially affected by active-duty status; servicemembers must provide notice and other documentation to creditors to receive this cap.The bill requires creditors to apply this cap to all of a servicemember’s obligations or liabilities with that creditor, regardless of whether a certain obligation or liability was specifically mentioned in the required notice provided by the member to invoke SCRA rights. Further, the bill requires creditors to provide all necessary mechanisms to ensure a servicemember is able to submit any required documentation.The bill also requires that the financial literacy training program provided to servicemembers include information about consumer financial protections afforded to such members and their dependents, including protections regarding interest rate limits under the SCRA. Additionally, the bill requires the military department concerned to provide written notice of benefits under the SCRA to servicemembers at the time they first enter military service and, for members of the reserve components, at the time they first enter service in the reserves and at any time when they are mobilized or ordered to active duty for more than 30 days.

Bill Text

• Introduced Introduced in Senate Current html May 01, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill enhances financial literacy training for servicemembers and improves notification and creditor obligations under the Servicemembers Civil Relief Act.

• 10 U.S.C. § 992

  (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);

  This adds a new requirement for financial literacy training to include consumer financial protections related to the Servicemembers Civil Relief Act.

• 10 U.S.C. § 992

  (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))

  This specifies that financial literacy training must encompass knowledge of protections regarding interest rates under the Servicemembers Civil Relief Act.

• 50 U.S.C. § 3915

  . → , including--

  This change makes the requirement for notifying servicemembers about benefits more extensive by clarifying when notifications should occur.

• 50 U.S.C. § 3915

  (1) at the time a person first enters military service; and

  This requires that information on benefits be provided when a person first enters military service.

• 50 U.S.C. § 3915

  (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.

  This expands the notification requirements to reserve component members when they enter service or are activated for over 30 days.

• 50 U.S.C. § 3937

  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. → the creditor shall--

  This begins a rephrasing of the requirements on creditors regarding the treatment of debts incurred by servicemembers.

• 50 U.S.C. § 3937

  (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).

  This requires creditors to also treat all other obligations or liabilities similarly, not just those mentioned by the servicemember.

• 50 U.S.C. § 3937

  (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.

  This mandates that creditors offer multiple methods for servicemembers to submit necessary documents regarding interest rate limitations.

Action History

1. May 01, 2025

   Introduced in Senate

2. May 01, 2025

   Read twice and referred to the Committee on Armed Services.

Sponsors

• Jon Ossoff · Primary
• Rick Scott · Cosponsor

Subjects