HR 3159 IH: Improving SCRA Benefit Utilization Act

Direct Link to Bill

Section 1. Short Title

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

SECTION 2. FINANCIAL LITERACY TRAINING REGARDING THE SERVICEMEMBERS CIVIL RELIEF ACT

Section 992 of title 10, United States Code, is amended by adding the following new subsection:

(a) The Secretary shall ensure that financial literacy training regarding the Servicemember Civil Relief Act is included in all educational programs and materials provided to military personnel.

(b) The Secretary shall also provide guidance to financial institutions on how to apply the provisions of the Servicemember Civil Relief Act to their lending practices.

SECTION 3. FINANCIAL INSTITUTION OBLIGATION TO APPLY MAXIMUM RATE OF INTEREST ON ALL SERVICEMEMBER DEBTS INCURRED BEFORE MILITARY SERVICE

Section 207(b) of the Servicemember Civil Relief Act is amended by adding the following new paragraph:

The creditor shall—

1. treat any debt incurred by a servicemember prior to military service in accordance with subsection (a), effective as of the date on which the servicemember is called to military service; and
2. 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).

SECTION 4. 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.