I have an outstanding debt but have to enter on military service. If I apply for protection under the SCRA, can the creditor do anything to me?
Untitled
No. The SCRA in Section 518 contains prohibitions against discrimination against someone who has exercised their rights under the SCRA (such as getting the interest rate on an outstanding debt reduced to 6%). Some of the actions that creditors, banks or other financial institutions cannot take are:
Determining that the servicemember can't pay the debt according to the terms
Negatively affect the servicemember's credit score
Deny the servicemember insurance coverage
You should be aware though that the creditors or bank CAN still take these actions; they simply are prevented from doing so ONLY because you have applied for protection under the SCRA.
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