The federal government and Florida legislature have created a series of laws and regulations that specifically protect the rights of military Service Members, Veterans and their dependents. Understanding these laws can be essential to your ability to manage your finances effectively, particularly during periods of military service. These regulations help protect you from predatory or unfair business and lending practices. They ensure you get a fair deal so you can focus on the mission instead of worrying about your finances and property.
Notable consumer protection stats
- From 2005 to 2011, the U.S. House Committee on Oversight and Government Reform found 148 cases of improper foreclosure actions that violated the SRCA
- During that same time, 14,000 servicemembers paid mortgages where the lender failed to properly reduce their interest rate to 6%
- Data analysis of one major financial institution found roughly 32% of SCRA-eligible borrowers had at least one loan with an interest rate above 6%
- The same study found only 82% of SCRA-eligible borrowers took advantage of that interest rate cap
This federal law is a cornerstone in military consumer protection. It’s the law that ensure you can focus on the mission when called to active duty instead of worrying about your finances. It prohibits many negative actions, such as foreclosure, evictions, repossessions during your deployment. It even caps your interest rates so you don’t have to come home to a financial mess following your service.
One of the main benefits of the Servicemembers Civil Relief Act is the 6% interest rate cap it provides. Learn how to request the cap from creditors, when the cap is automatic and how you can apply it retroactively. These seven tips can ensure you don’t pay excess interest charges during a period of military service.