The Servicemembers Civil Relief Act of 1940 (SCRA) is a federal law that provides extra protections for servicemembers when legal or financial transactions adversely affect their rights during military or uniformed service. These protections are designed to allow servicemembers to devote their full time and energy to defending the United States of America.

The SCRA is located in the United States Code at 50 U.S.C. §§ 3901-4043 and applies to the following servicemembers:

•Active-duty members of the Army, Marine Corps, Navy, Air Force, and Coast Guard;

•Members of the Reserve component when serving on active duty;

•Members of the National Guard component mobilized under federal orders for more than 30 consecutive days; or

•Active duty commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration.

SCRA rights may be exercised by anyone holding a valid power of attorney for the servicemember. Some SCRA protections also apply to dependents.

According to the U.S. Department of Justice, these are five protections that servicemembers often ask about:

•Reducing the interest rate on any pre-service loans to a maximum of 6 percent

•Protections against default judgments in civil cases

•Protections against foreclosure on their home

•Protections again repossession of their property

•Termination of residential housing and automobile leases without penalty


In South Dakota, as in all states, the Servicemembers Civil Relief Act (SCRA) of 1940 provides federal protections for individuals in military service. The SCRA covers active-duty members of the military branches, reservists on active duty, National Guard members mobilized under federal orders for more than 30 consecutive days, and commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration. The SCRA allows servicemembers to reduce interest rates on pre-service loans to a maximum of 6 percent and offers protections against default judgments, foreclosure, and repossession of property. Additionally, servicemembers can terminate residential and automobile leases without penalty under certain conditions. These protections are designed to enable servicemembers to focus on their duties without undue financial or legal stress. Dependents of servicemembers may also benefit from certain SCRA protections, and individuals with power of attorney can exercise SCRA rights on behalf of a servicemember.