Military Resource Center
As active service members continue to deploy and serve around the world, Cobalt remains committed to the people and families behind that service. Our roots are grounded in supporting the military community, and that dedication continues today. We understand that deployment can bring stress, uncertainty, and time away from loved ones. That’s why we’re here with resources, guidance and support designed to help service members and their families navigate the financial side of military life with confidence.
The Servicemembers Civil Relief Act (SCRA) provides financial and legal protections for active duty service members and their families during military service. Key protections include:
Federal Benefits
- This includes benefits like a 6% interest rate cap on debts you had before starting military service, protection from foreclosure and waived account fees. View Comptroller's Handbook, Servicemembers Civil Relief Act for information.
State Benefits
- Some states offer extra benefits. This might include deferring payments or extending benefits to families or dependents. To learn more, visit your state's official website.
Which accounts are eligible?
SCRA benefits typically apply to consumer credit accounts opened before you started your qualifying military service. This includes:
• Credit cards
• Auto loans
• Personal loans
• Mortgages
• Home equity loans and lines of credit
For questions about auto loans, personal loans, lines of credit, and home equity lines of credit, please contact Cobalt directly.
*For credit card questions, call 866.552.8855. For mortgage questions, call 800.766.5626.
FAQ
- What is the SCRA?
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The Servicemembers Civil Relief Act (SCRA) is a federal law that provides financial protections to eligible servicemembers while they are on qualifying active duty military service. The purpose of the SCRA is to help ensure that military service does not unfairly impact a member’s ability to manage existing financial obligations.
The SCRA does not eliminate or forgive debt, but it may reduce interest, delay certain enforcement actions, and limit how loans are serviced during protected periods.
- Who is covered?
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SCRA protections generally apply to:
- Activeduty members of the U.S. Armed Forces
- Reservists on federal activeduty orders
- National Guard members on qualifying federal orders (generally more than 30 days)
- Commissioned officers of the Public Health Service (PHS) and NOAA
- In certain situations, protections may also apply to joint borrowers or dependents.
- What types of loans at Cobalt Credit Union may be affected?
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SCRA protections most often apply to preservice obligations, which means loans or credit accounts opened before qualifying military service. These may include:
- Credit Cards*
- Auto loans
- Personal loans and Lines of Credit
- Home equity loans
- Mortgages*
For questions about auto loans, personal loans, lines of credit, and home equity lines of credit, please contact Cobalt directly.
*For credit card questions, call 866.552.8855. For mortgage questions, call 800.766.5626.
- What is the 6% interest rate cap?
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If you qualify for SCRA protections:
- Interest on eligible preservice loans is capped at 6% per year
- The cap generally includes most fees and service charges
- Any interest above 6% must be forgiven, not added back later
- The cap applies for the duration of active duty service
- For eligible mortgage loans, the 6% cap continues for one year after active duty ends
- Do I need to request the 6% interest rate cap?
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Yes. If you would like to request the 6% interest rate cap under the SCRA, you will need to:
- Provide written notice to Cobalt Credit Union
- Submit a copy of military orders or other acceptable proof of qualifying service
- Submit the request during active duty or within 180 days after service ends
Cobalt is committed to working with members to help ensure SCRA benefits are applied accurately and in a timely manner.
- Can I be denied credit or reported negatively for using SCRA protections?
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No. You will not be denied or lose credit, have your loan terms changed, have your loan balance accelerated or be reported negatively to credit bureaus because you exercised your rights under the SCRA.
Normal credit reporting may still apply if payment issues are unrelated to SCRA relief.
- Can SCRA rights be waived?
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In some cases, yes — but only under very specific conditions. For a waiver to be valid:
- The waiver must be in writing
- It must be a separate, standalone document
- It must be signed during or after military service
- Preservice or blanket waivers are not valid
