One of the benefits afforded to servicemembers under the Servicemembers Civil Relief Act (SCRA) is a 6% interest rate cap on all debts incurred prior to the servicemember being placed on active duty. This reduction must remain in effect at least for the duration of their active-duty status and, in some cases, for one year after that service. During this time, a financial institution must forgive any interest in excess of the 6% and re-amortize the remaining payments. Any interest payments made in excess of the 6% during the time period of service must also be refunded. Keep in mind, the SCRA defines “interest” to include any service charges, renewal fees, annual fees, etc., so these will need to be taken into consideration as well.
Kevin explains more in the video.