Congresswoman April McClain Delaney (MD-06) has introduced the bipartisan Improving SCRA Benefit Utilization Act, aimed at lowering costs and expanding access to financial protections for Maryland servicemembers and their families. The legislation aims to address the underutilization of benefits available through the Servicemembers Civil Relief Act (SCRA), a concern raised in a recent report by the Consumer Financial Protection Bureau.
Companion legislation was introduced in the U.S. Senate by Senators Jon Ossoff (D-GA) and Rick Scott (R-FL).
The SCRA provides legal and financial protections to active duty military personnel—including members of the National Guard and Reserve—helping them manage obligations like credit cards, loans, and mortgages while on active duty. However, these benefits often go unused due to lack of awareness and administrative barriers.
If passed, the bill would:
- Expand financial literacy programs to include SCRA-related education.
- Require the Department of Defense’s annual survey to include information about SCRA protections.
- Mandate that all activation orders include SCRA benefit details.
- Require creditors to apply the 6% interest rate cap to eligible accounts after a servicemember invokes their SCRA rights.
“The SCRA grants our servicemembers well-earned interest rate reductions on credit cards, loans, and mortgages. Sadly, these benefits too often go unused due to a lack of awareness or overly complicated processes,” said Rep. McClain Delaney. “So, I’m proud to join Senators Ossoff and Scott in introducing the bipartisan Improving SCRA Benefit Utilization Act, a common-sense bill that will improve outreach and streamline access so our military can focus on their mission—not financial red tape.”
The legislation has garnered support from prominent military organizations, including The American Legion, U.S. Army Warrant Officers Association, Fleet Reserve Association (FRA), and Platoon22.
Niki Falzone, Executive Director of Platoon 22 in Frederick, Maryland, said, “At Platoon 22, we believe that protecting those who protect us starts with ensuring they have the knowledge and tools to defend their financial well-being. The Improving SCRA Benefit Utilization Act is a critical step toward empowering servicemembers with the information they need and removing unnecessary barriers. By streamlining access to interest rate protections and increasing awareness through education and transparency, this legislation honors their service with the dignity and support they deserve.”
As access to these protections depends on proper verification, confirming active duty status becomes a key step for servicemembers. SCRACVS can help service members obtain proof of active duty status so they can make the most of their SCRA benefits. Open an account today to verify the active duty status.