What if my SCRA 6% interest rate request was denied?

This notice

A credit card or loan letter, email, or portal message says your Servicemembers Civil Relief Act (SCRA) request for a 6% interest rate was denied, delayed, or left unanswered — and your statement still shows interest above 6% on a debt you opened before active duty.

This is not a routine card APR change letter. The CFPB page When can my credit card company increase my interest rate? covers ordinary rate increases and notes that SCRA protections can expire. This page starts when you already asked for the SCRA 6% cap and the creditor did not apply it.

This is not LIVE credit-card-credit-limit-reduced or LIVE credit-card-issuer-closed-my-account. Those guides are about a lower limit or a closed card. Keep this page when the fight is the interest rate after an SCRA request.

The CFPB Ask page I am in the military, are there limits on how much I can be charged for a loan? says that if you are in military service, the SCRA limits interest on certain loans you took out before active-duty service to 6 percent. To qualify, you must currently be in active-duty service, have taken out the loan before that service, and notify the lender in writing with a copy of your military orders.

That page also says you may request the reduction any time while on active duty and up to 180 days after release from active duty. When you make a proper request, the lender must reduce the rate to 6% for the covered period. Interest above 6% is forgiven — the lender generally may not add it back later. The lender generally must refund amounts charged above the cap from your entry onto active duty through the end of the covered period. For mortgages, the reduced rate lasts one year past the last day of active-duty service.

50 U.S.C. § 3937 is the statute behind that cap. The CFPB SCRA consumer tool repeats the 6% reduction and points people who hit trouble to a CFPB complaint and to the Department of Justice’s civil-rights reporting channel named on that page.

Recent complaint themes describe the same pattern: an Amex, Synchrony, mortgage servicer, or auto lender denial or delay after orders were uploaded, while statements still show a rate above 6%. Official CFPB text wins any tip that says the creditor can “park” the extra interest for later.

Official path

1. Save the denial or delay email, letter, chat transcript, and every statement page that still shows interest above 6%. Circle the account number, the rate, and any SCRA reference number.

2. Match the debt to the SCRA timing rules on the CFPB military interest-limit page. Confirm the account was opened before you entered active-duty service. If it was opened after entry, stop and ask a military legal assistance office whether a different rule applies.

3. Resend a written SCRA request to the creditor’s SCRA, military benefits, or executive correspondence address. Attach a fresh copy of your orders calling you to military service. The CFPB page requires written notice plus orders. Keep certified-mail or portal proof.

4. Ask in the same letter for three concrete fixes: reduce the rate to 6% effective as of your entry onto active duty (or the date your orders support), forgive interest above 6%, and refund amounts already charged above the cap for the covered period. For a mortgage, note the page’s extra year after active duty.

5. Check Reservist timing if that is your status. The CFPB tip on that page says that for Reservists called onto active duty, the reduction generally begins on the date you receive orders that you will be starting military service.

6. Call a military legal assistance office or use Military OneSource personal finance and the Office of Financial Readiness SCRA page if the creditor keeps denying a proper packet. Air Force Legal Assistance is one locator path; other branches have their own legal offices.

7. Submit a complaint at Submit a complaint if the creditor ignores a complete written request, refuses the refund of interest above 6%, or keeps reporting a higher rate on a covered pre-service balance. Attach the orders, your request letters, the denial, and the high-rate statements. The CFPB SCRA tool page also notes you can report SCRA problems through the Justice Department channel named there.

People sometimes say a phone call alone forces the 6% rate. The CFPB page requires written notice and a copy of orders. Official steps win that conflict.

What people reported

Often helps

• Sending one complete packet: written SCRA request, orders, statement pages above 6%, and a short demand for rate cut, forgiveness, and refund — then waiting for a written answer before another phone round.
• Escalating the same packet through a military legal assistance office when a card issuer or servicer denial repeats without a lawful reason.

Often fails

• Only chatting with a general customer-service line and never mailing or uploading orders.
• Asking for the 6% cap on a card or loan opened after active-duty entry and expecting the pre-service SCRA rule to apply.

Template

[DATE]

[CREDITOR / SERVICER NAME]
SCRA / Military benefits unit
[ADDRESS OR SECURE PORTAL]

Re: SCRA 6% interest rate reduction — account ending [LAST FOUR]

I am on active-duty military service (or was released within the last 180 days). The account above was opened before I entered active-duty service.

On [DATE OF FIRST REQUEST] I sent a written SCRA request with a copy of my orders. Your response dated [DATE] denied, delayed, or failed to apply the 6% SCRA interest rate cap. My statement dated [DATE] still shows interest above 6%.

Under the Servicemembers Civil Relief Act and the CFPB guidance on military interest limits, please:

1. Reduce the interest rate on this pre-service account to 6% for the covered SCRA period;
2. Forgive interest above 6% (do not defer it to be added later);
3. Refund amounts charged above 6% from my entry onto active duty through the end of the covered period; and
4. Send written confirmation of the new rate, the effective date, and the refund amount.

Orders copy and statement pages are enclosed. Please reply in writing within [REASONABLE TIME YOU CHOOSE, SUCH AS 14 DAYS].

Sincerely,
[NAME]
[ADDRESS]
[PHONE]
[EMAIL]

Stop here if…

• You never sent a written SCRA request with orders — start with that packet first, using the CFPB military interest-limit page.
• The debt was opened after you entered active duty — the pre-service 6% SCRA rule on that page may not fit; ask legal assistance about other protections.
• Your only paper is an ordinary 45-day APR increase notice with no SCRA request on file — use the CFPB rate-increase page instead of this guide.
• A court summons or foreclosure packet arrived — do not ignore the court paper; get legal help right away.

FAQ

Is this the same as a 45-day credit card APR increase notice?

No. A routine change-in-terms or APR increase letter is a different paper trail. Keep this page when you already sent an SCRA 6% request with orders and the creditor denied it, delayed it, or kept charging more than 6% on a pre-service balance.

Does the SCRA 6% cap apply only to credit cards?

No. The CFPB military interest-limit page says the 6% cap can apply to auto loans, mortgages, credit cards, other installment loans, and many student loans taken out before active duty. This guide uses the card denial pattern because that is a common letter, but the same written-request steps apply to those other pre-service debts.

What if the loan was opened after I entered active duty?

The SCRA 6% cap described on the CFPB page is for debts incurred before you entered active-duty service. Loans taken while on active duty may instead implicate the Military Lending Act 36% limit on certain products. Do not force an SCRA 6% request onto a debt that was opened after you entered service unless a legal assistance attorney confirms another right applies.

How long do I have to request the reduction?

The CFPB page says you can request the reduction any time while you are on active duty and up to 180 days after release from active duty. You must provide a copy of your orders calling you to military service. For mortgages, the reduced rate generally lasts one year past the end of active-duty service.

What if the creditor says interest above 6% will be added back later?

The CFPB page says interest above 6% is forgiven. The lender generally may not add that excess interest back after you leave active duty. Say that in your written follow-up and attach the statement pages that still show a rate above 6%.