The Servicemembers Civil Relief Act (SCRA)

Who's eligible for SCRA benefits and foreclosure and repossession protections?

Active duty members of the military, including those described below, who received their loan or credit prior to active service may be eligible for an interest rate reduction benefit and may be protected from non-judicial foreclosure and repossession of property without a court order:

• Active duty in the Army, Navy, Air Force, Marine Corps or Coast Guard, including reservists serving on active duty
• National Guard service for more than 30 consecutive days under federal orders issued by the President or Secretary of Defense
• Commissioned officers of the National Oceanic & Atmospheric Administration and Public Health Service on active service
• Bank of America also extends certain benefits to the spouse or dependent of a covered servicemember, even if the servicemember is not on the account.

Who's not eligible for SCRA benefits and foreclosure and repossession protections?

• Individuals who received their loan or credit while on active duty in military service are not eligible for the 6% interest rate cap or the protection from non-judicial foreclosure or repossession.
• National Guard members, except as described above (although some state laws provide similar benefits for National Guard members called to active duty under state-issued orders)

What are some SCRA benefits?

Except for special programs offered exclusively by Bank of America, all SCRA benefits and protections relating to the 6% interest rate caps and repossessions or foreclosures generally do not apply to debts incurred during active duty military service.

Line of Credit and Credit Card Benefits

• Reduction or limits on interest rates. If you enter active duty and have an existing credit card, you may be entitled to a lower interest rate. While you're on active duty lenders generally cannot impose a rate of interest exceeding 6% on debts incurred prior to active duty. The 6% rate is in effect for your entire period of active duty service.
• Reduced payments. If your interest rate is higher than 6% your payments will be reduced to reflect the lower interest rate.
• Extended Benefit Timeframe. As an additional benefit to help you with your transition to civilian life, Bank of America’s SCRA program extends these interest rate benefits, and offers reduced payments on credit cards for an additional six months beyond the date you end military service.

Installment Contract Benefits (including auto, RV, boat, motorcycle, aircraft)

• Reduction or limits on interest rates. If you enter active duty and have an existing installment contract, you may be entitled to a lower interest rate. Lenders generally cannot impose a rate of interest exceeding 6% on debts incurred prior to active duty. The 6% rate is in effect for your entire active duty service.
• Reduced payments. If your interest rate is higher than 6% your payments will be reduced to reflect the lower interest rate.
• Extended Benefit Timeframe. As an additional benefit to help you with your transition to civilian life, Bank of America's SCRA program extends the interest rate and offers reduced payments for an additional six months beyond the date your military service ends on all consumer automobile, RV, Boat, motorcycle and aircraft loans.
• Protection from repossession. While on active duty you are protected from repossession, unless a court issues an order allowing the repossession to take place. As an additional benefit, Bank of America extends repossession protections on consumer contract (car, boat, etc.) for an additional 60 days beyond the date your military service ends.

Mortgage and Home Equity Benefits

• Reduction or limits on interest rates. If you enter active duty and have an existing mortgage loan, you may be entitled to a lower interest rate. Lenders generally cannot impose a rate of interest exceeding 6% on debts incurred prior to active duty. The 6% rate is in effect for your entire period of active duty service, and for mortgage loans the benefit extends one year beyond your period of military service.
  • Bank of America currently offers a benefit that exceeds the federal law requirements described above. If your loan is owned and serviced by Bank of America, you will receive a rate of 4% for your home mortgage loan, potentially saving you thousands of dollars. Even if your loan is owned by an investor such as the U.S. Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac or other private investors, you may still qualify for the 6% rate. Please call us if you have questions regarding the ownership of your mortgage, or to see if you're eligible for the 4% or the 6% rate.
• Extended Benefit Timeframe. As an additional benefit while you're transitioning to civilian life, the SCRA program extends the interest rate and reduced loan payment benefits for twelve months beyond the date that your military service ends.
• Reduced payments. If your interest rate is higher than 6%—or 4% for mortgages both owned and serviced by Bank of America—your payments will be reduced to reflect the lower interest rate.
• Protection from foreclosure. The SCRA generally prevents lenders from foreclosing (absent a court order) on eligible active duty servicemembers during their period of military service and twelve months thereafter. To learn more about this benefit, please contact us.
• Home Retention Options: In addition to other home retention options, Bank of America also offers the Military Modification Program. As part of the federal government's Making Home Affordable program, this program offers principal forgiveness and other solutions to help qualified military customers who are having difficulty making their mortgage payments.

To qualify for the program and receive the interest rate and payment reduction benefits, you must submit a copy of valid military orders. Alternatively, you may provide either a completed copy of the Military Short Form (available from your local JAG office), or a letter on official letterhead from your commanding officer. This letter must contain your full name, Social Security number, date of birth, home address and active duty start date, as well as your commanding officer's telephone number and a statement acknowledging that your creditors may rely on it.

Student Loan Contracts

• Reduction or limits on interest rates. If you enter active duty and have an existing loan, you may be entitled to a lower interest rate. The loan on which a rate reduction is requested must be disbursed prior to the date the borrower was called to active duty. The 6% rate is in effect for your entire period of active duty service.
• Reduced payments. If your interest rate is higher than 6% your payments will be reduced to reflect the lower interest rate.

What are your responsibilities?

• To qualify for SCRA benefits, you must provide all required documentation to us or your student loan servicer.
• Your SCRA benefits do not relieve you of your responsibility to make these payments, nor do they prevent us from reporting past due payments to credit bureaus.
• If you're having trouble making your payments, please contact us so we can help you manage them. You don't need to do anything in order to receive protection from non-judicial foreclosure or repossession. Although you’re not required to alert lenders of your military status to receive foreclosure and repossession protections, it is a good idea to do so. You may be eligible for relief under state benefits.