Applying for SCRA Benefits: A Complete Overview with Central Pacific Bank

James Napolitano
2024-09-11T16:12:19Z

1. What is The Servicemembers Civil Relief Act?

The Servicemembers Civil Relief Act (SCRA) provides legal and financial protections to those who have answered the Nation’s call to serve. The SCRA is a law created to provide extra protections for servicemembers in the event that legal or financial obligations adversely affect their rights during active duty. These protections enable servicemembers to devote their entire energy to the defense needs of the Nation.

2. Who is eligible for SCRA benefits?

SCRA benefits can be requested by the following servicemembers (and their dependents) if their account was opened prior to active duty/service:

1. Active duty members of the Army, Marine Corps, Navy, Air Force, Coast Guard, and Space Force.

2. Members of the Reserve component when serving on active duty.

3. Members of the National Guard component mobilized under federal orders for more than 30 consecutive days.

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

5. Servicemembers who are absent from active duty on account of sickness, wounds, leave, or other lawful cause.

3. When should I request SCRA benefits?

Requests for SCRA benefits should be made as soon as possible, but must be made no less than 180 days after leaving or completing active duty.

4. If I am approved for SCRA benefits, how will it affect my loan?

Your loan’s interest rate and fees will be capped at 6% throughout the duration of your active duty/service. Other protections may also apply depending on the type of loan you took out.

5. I am a service member, how do I apply for SCRA benefits?

Please provide the following via email to scrabenefits@upstart.com or via physical mail at Upstart Loan Operations P.O. Box 1503. San Carlos, CA 94070:

1. Your full name, your date of birth, and the loan IDs of all the accounts you are requesting benefits for.

2. Written notification of a request for SCRA relief. (e.g.,”I am a servicemember (or the legal representative of a servicemember) who has been called to active duty. My name and date of birth are provided below. I hereby request the benefits and protections guaranteed under the Servicemembers Civil Relief Act for the loan(s) identified below.”).

3. A copy of the original military orders and/or any subsequent orders extending military service. The orders should indicate when you will be called to military service and for how long. You may alternatively provide a letter from your commanding officer on official letterhead that includes:

1. Your name and Social Security Number.

2. Active duty start date.

3. Branch of service.

6. I am the spouse/dependent of a servicemember, how do I apply for SCRA benefits?

Please provide the following via email to scrabenefits@upstart.com or via physical mail at Upstart Loan Operations P.O. Box 1503. San Carlos, CA 94070:

1. The servicemember’s full name, their date of birth, and the loan IDs of all the accounts you are requesting benefits for.

2. Written notification of a request for SCRA relief (e.g.,”I am the spouse/dependent of a servicemember who has been called to active duty, whose name and date of birth are provided below. I hereby request the benefits and protections guaranteed under the Servicemembers Civil Relief Act for the loan(s) identified below.”).

3. A copy of the original military orders and/or any subsequent orders extending military service. The orders should indicate when the servicemember will be called to military service and for how long. You may alternatively provide a letter from the servicemember’s commanding officer on official letterhead that includes:

1. The servicemember’s name and Social Security Number.

2. Active duty start date.

3. Branch of service.

d. One of the following documents:

1. A copy of your official marriage certificate.

2. A copy of your most recent federal tax return (form 1040) showing your name as a dependent of the servicemember.

3. Defense Enrollment Eligibility Reporting System (DEERS) registration.

4. Court documents showing that you or your family’s ability to pay is materially affected by the servicemember’s service.

7. How long will my request take to be processed?

Expect to hear back within 10 days of submitting your request.

8. Why was I denied benefits?

Typically, requests for SCRA benefits are denied for one of the following reasons:

1. The account was opened during active duty military service.

2. Benefits were requested after the eligibility period ended. The eligibility period ends after 180 days from the end of active duty/service.

3. The account was settled or paid in full before the start of your active duty military service.

4. We did not receive sufficient documentation to verify active duty status, dependency, etc.

9. I have more than one loan, can I request SCRA protections on all of them?

Yes. If you have multiple loans please include the loan ID for each loan when submitting your request.

10. In my absence, I have appointed someone to handle my affairs, how can they gain access to my account(s)?

If a spouse, dependent, or family member will be handling your account throughout the duration of your military or uniformed service, please provide the notarized power of attorney via email to scrabenefits@upstart.com or via physical mail at Upstart Loan Operations P.O. Box 1503. San Carlos, CA 94070.

11. Does the SCRA protect me from repossession?

The SCRA prohibits repossession of personal property, including your vehicle, without a court order. This only applies if you are approved for SCRA benefits.

12. Can I apply SCRA benefits for a loan I already paid off?

Yes, if you overpaid on the loan while actively serving you could be eligible for a refund if less than 180 days has passed since your active duty ended.

13. Where can I find additional information?

The official government resource for information regarding SCRA benefits can be found at https://www.justice.gov/servicemembers/topics.

14. How can I contact you for further information?

You can call us at 1-833-285-1038. We're available Monday to Friday between 6 AM - 6 PM Pacific Time and Saturday between 7:00am - 4:00 PST, except New Years Day, Thanksgiving Day, Christmas Eve, and Christmas Day.