Guest Post – Servicemembers Civil Relief Act (SCRA) – How to Hold on to More of Your Own Money
By Dr. Mike Lloyd
(Editor’s Note – The lesson from the guest post below is that if you have any debt of any kind you should make sure whoever services that debt knows you are Active Duty and that you are requesting they follow the SCRA. I know of multiple people who got hundreds if not thousands of dollars back from credit card companies when they called them.)
After 17 cumulative years of active duty service (enlisted, line, then Medical Corps), I thought that I knew everything there was to know about the Servicemembers Civil Relief Act (SCRA). I had counseled many of junior sailors on it that had fallen prey to predatory loans, so I felt fluent in the nuance of the law. Yet somehow I assumed – erroneously – that the SCRA only applied to new servicemembers with pre-existing debts from before their first entry into active duty. I also figured that if any benefits applied to me, as a senior officer, I would have been savvy enough to have already known about them.
One day a few months ago, that all changed. Randomly, a large check showed up in the mail unannounced from our mortgage company. Despite this being a happy surprise, I realized I needed to learn more about the SCRA and its protections to make sure I wasn’t missing out on any other benefits.
A Brief History of the Servicemembers Civil Relief Act
The birth of the SCRA goes back to the Civil War when the U.S. Congress passed a law protecting Union soldiers from legal action relating to personal debt while away from home. This law went on to have multiple iterations throughout the subsequent 150+ years, eventually becoming the Soldiers’ and Sailors’ Civil Relief Act of 1940 and then, in 2003 when the law was modernized again by Congress, becoming the SCRA we know today.
The SCRA, as codified under in federal law under 50 U.S.C. §§ 3901—4043, broadly covers most types of pre-existing personal debts originated before the period of active military service.
- SCRA applies to most types of personal debt, including: car loans, student loans, credit cards, and mortgages;
- Debt must have been incurred prior to a service member entering into active duty or being called to active service if in the National Guard;
- Effective for the duration of military service for most obligations;
- Provides broad home foreclosure, repossession, and eviction protections;
- Effective for one year beyond the end of active-duty service for mortgages and deeds;
- Caps the annual interest rate at 6% for the servicemember (and any joint loans with a legal spouse);
- A court-order can reverse the SCRA 6% rule only if the creditor can prove the burden is not too great for the service member to pay;
- Interest is defined as service charges, renewal charges, fees, or any other charges (except bona fide insurance) with respect to an obligation or liability.
- The sum of the above is often referred to as the effective interest rate.
Back To My Story …
Throughout my career, I have alternated through several periods of active and inactive duty service: I first enlisted in 1998, then got out to attend ROTC at the University of Southern California and commissioned back into the Navy 2004 as a pilot. Then, after my flying career I got out of the Navy, attended medical school on the HPSP scholarship, and came back into the Medical Corps. By the time I had re-commissioned into the Navy I had new kids, new debts, and a mortgage to boot, mostly all acquired while in the Navy Reserves as an HPSP student.
This constant phasing in and out of active duty status created a lack of clarity for me. Despite being in reserve status while in med school, my association with the Navy had lasted so long that I hardly considered debt acquired during med school as pre-existing to my active duty service. In short, it was confusing. I failed to fully comprehend that that the SCRA applies to debt acquired during any period of inactive status, not just my initial pre-Navy period of inactive status way back in 1998.
So, as mentioned, just prior to my Medical Corps commissioning in 2017, while I was still an inactive reservist in HPSP and blissfully unaware of my rights under the SCRA, my spouse and I bought a house. Given my ignorance on the matter, I never wrote to my mortgage company asking for the debt relief to which I was entitled. I thus had a low-interest, fixed-rate loan that the SCRA law could not help me out with because (1) I assumed I was already considered to be “in the Navy” when I took out the loan, and (2) my mortgage rate was less than 6%.
I was wrong on both counts.
First off, I was not on active duty status when we secured our loan; I was in the reserves and the SCRA makes this distinction very clear and actionable.
Secondly, the combined fees and interest on our loan, what is often referred to as the effective interest rate, exceeded 6% even thought the loan rate itself was far below that.
Eventually through no actions of my own, word had eventually been passed to our mortgage company via the Defense Manpower Data Center (DMDC) (five years after my 2017 commissioning) that I had transitioned back to active duty. The DMDC is a DoD entity that apparently reaches back to banks and lenders periodically to provide such information. The DMDC website proudly proclaims itself to be the “central source for identifying, authenticating, authorizing, and providing information on personnel during and after their affiliation with DoD.”
Once legally informed of this change in status, my scrupulous mortgage company was obligated to refund any fees in excess of the 6% effective interest rate. They wrote us that fat refund check giving us years of retroactive interest relief and they lowered our monthly mortgage interest even more. It was our own money back, but it felt good.
My Advice
We got lucky. The DMDC caught my mistake and our mortgage company dutifully returned loads of our hard-earned money to us. This was money we could now use to stash in our retirement or spend on our kids. For those of you who are currently in med school or who may have debts acquired from before you were commissioned, I hope my story encourages you to seek out more information on the SCRA. My advice to military folks is to always inform your financial institutions of any change in military status as it may have a positive impact on your loan repayment. Know how important and easy this information is to provide to your lender (documents on your online personnel system, such as BUPERS online). It may save your thousands of dollars. You work hard and you deserve the protections under this law!
“The views expressed in this article reflect the results of research conducted by the author and do not necessarily reflect the official policy or position of the Department of the Navy, Department of Defense, nor the United States Government.”
Additional information can be found at:
https://dwp.dmdc.osd.mil/dwp/app/main
https://militarypay.defense.gov/Benefits/Servicemembers-Civil-Relief-Act/
https://www.law.cornell.edu/uscode/text/50/chapter-50
Notice to GME Applicants – E-mail Address Changes
If you are unaware, there is an enterprise-wide email migration from mail.mil to health.mil; the GME office email address has changed to usn.bethesda.navmedleadprodevcmd.mbx.gme-sb@health.mil. The health.mil email address is already active; it is highly recommended that all inquiries and documentation be sent to the new email address starting today.
Email forwarding from mail.mil to health.mil will end on 30 Sep 22. Any documents sent to the old mail.mil address after 30 Sep 22 will NOT be received by the GME office or uploaded into MODS.
Please plan accordingly, and inform your schools, LOR writers, and anyone forwarding documentation on your behalf.
Medical Corps Non-Specialty Specific (NSS) Billet Opportunities
NSS billets are targeted for MC officers with previous operational/administrative/research/leadership experience. The attached candidate input form explains the application and assignment process for the NSS billets.
Opportunities are listed below, with position descriptions attached.
The list is current but will fluctuate throughout the detailing cycle. NSS applications are due to members’ detailer NLT 27 September 2022.
NSS detailing involves extensive cross-detailing at PERS. As such, communication is key. Officers must communicate their intentions to their detailer and community specialty leader(s).
Please direct questions regarding the NSS list to your detailer. Contact information is listed in the attached candidate input form.
· Force Surgeon, Commander Naval Surface Forces Pacific
· Force Surgeon, Commander Naval Air Forces Atlantic
· Force Surgeon, Commander Naval Submarine Forces Atlantic
· Force Surgeon, Commander Naval Information Forces (COMNAVIFOR)
· Officer-in-Charge, Fleet Surgical Team / CATF Surgeon, FLEET SURGICAL TEAMS
· Senior Medical Officer, LHD/A
· Senior Medical Officer, AS 39/40 USS Emory S. LAND; USS Frank CABLE
· 1st MARDIV Surgeon, 1st MLG Surgeon (Feb 2023 FILL), 3rd MAW Surgeon; 1st MAW Surgeon, I Marine Expeditionary Force (MEF); III MEF
· Regimental Surgeon, 1st MARDIV, 2nd MARDIV
· Director, 3rd MED BTN
· MEB Surgeon, COMMAND ELEMENT 2nd/3rd MEB
· Group Surgeon, NAVAL CONSTRUCTION GROUP ONE
· Director, Medical Readiness Division, Commander Naval Surface Forces Mid Pacific, Commander Naval Surface Forces Pacific
· Command Surgeon, Joint Task Force, USNORTHCOM
· Deputy Director, Force Medical Readiness (M34), BUMED WASH DC
· Medical Corps Detailer, CNAVPERSCOM MILL (Navy Personnel Command, PERS-4415)
· Chief Medical Information Officer (CMIO), NMFL, NMFP, DHA, DISA
· Member, Physical Evaluation Board, SECNAV CORB
· Chief, Lessons Learned and Innovation, NATO Centre of Excellence for Military Medicine (MILMED COE)
· Staff Inspector, BUMED, Office of the Medical Inspector General
· Medical Corps Policy & Program Management, BUMED, Office of the Medical Corps Chief
· Surface Medicine Program Manager, BUMED
· Medical Planner, NATO HEADQUARTERS ALLIED MARITIME COMMAND (MARCOM)
· Researcher (ID/Immunology), NMEDRSCHCEN (Navy Medical Research Center)
· Health Science Researcher (Undersea Medicine), NMEDRSCHCEN (Naval Medical Research Center)
· Trauma/Critical Care Medical Research Officer, NMRU SAN ANTONIO (Navy Medical Research Unit, San Antonio)
· Student, NAVAL WAR COLLEGE
Operational Medical Officer (OMO) Opportunities
PERS 4415 has provided the attached OMO opportunities list:
The list is current but will fluctuate throughout the detailing cycle. Residency-trained MC officers without previous operational experience are encouraged to apply as outlined in the attached memo and per BUMEDINST 1520.42B.
OMO applications are due to operational specialty leaders NLT 15 October 2022.
OMO detailing involves extensive cross-detailing at PERS. As such, communication is key. Officers must communicate their intentions to their detailer and community specialty leader(s).
Questions about OMO applications can be directed to the operational community specialty leader of the community to which you are applying:
· Aerospace Medicine and Flight Surgery – CAPT Robert J. Krause
· Fleet Marine Forces – CDR Debra D. Buckland-Coffee
· Surface Medicine – CAPT Mark J. Lenart
· Undersea and Dive Medicine – CAPT James J. Mucciarone
Additional information on OMO applications can be found here: https://esportal.med.navy.mil/bumed/m00/m00c/M00C1/SitePages/Home.aspx
Here’s a graphic for an info session happening on 13 SEP:
Medical Corps CME/MOC Funding – End of FY – Non-Travel Submissions Due 23 SEP 2022 | Travel Related Funding Due 16 SEP 2022
Medical Corps CME Funding: The end of the Fiscal Year 2022 is approaching. All Maintenance of Certification (MOC) and Non-Travel related Certification Examination funding requests must be submitted to the Navy CME Office by 23 September 2022. Any travel related funding request must be sent to the Navy CME office by 16 September 2022.
In accordance with BUMEDINST 1500.20A, NAVMEDPRODEVCTR will not authorize funding for MOCs or exams taken in prior fiscal years.
MOC and Exam Funding requirements can be found at this website:
Send all inquiries and funding requests to:
usn.bethesda.navmedleadprodevcmd.mbx.nmpdc-cme-funding@health.mil
CNO’s Get Real Get Better Message/Video
Leaders,
Today, I am releasing a video to highlight our progress toward the Get Real Get Better rollout to Navy triads this fall, and to reinforce the importance of this upcoming training.
In January, I introduced the Get Real Get Better call to action to accelerate our warfighting advantage, in concert with a new Charge of Command.
Driven by the need to unlock the full potential of our Navy, Get Real Get Better (GRGB) brings consistency to the mindset practiced by our best Navy leaders today.
GRGB is the standard for how we expect commanders to lead and solve problems.
Over the past year, we infused GRGB into the senior levels of our Navy, establishing how every Flag Officer and member of the Senior Executive Service should lead at every level.
We’re ready now to share these expectations with our front-line commanders, the COs, XOs, Senior Enlisted Leaders and Civilian Directors who are the cornerstone of our naval power today.
Below is a link to a video message to Navy leaders, targeting our command triads from Echelon I to Echelon V. The video introduces the Get Real Get Better leadership standard that we expect every Navy leader to adopt: act transparently, focus on what matters most, and build learning teams.
Forward this e-mail down to your subordinate commanders, all the way to Echelon V, to start a conversation about what it means to be a Navy leader in Strategic Competition, and how we as a Service must change.
In your regular meetings with your subordinate commanders, I encourage you to watch this video together. The video’s message is powerful, and commander-to-commander conversations amplify it.
Our Fall rollout will center on commander-to-commander conversations as the key to bringing alive the GRGB leadership standard in a way that our leaders fully understand, and to make clear your expectations.
Through the next year, we’ll focus on the long overdue personnel and education reforms needed to develop and reward leaders not only for the outcomes they achieve, but also for the cultures and teams they build by embracing the GRGB leadership standard.
My strategy for cultural renovation begins with us, the Flag Officers and SES who lead our subordinate Commanders and Sailors.
Let’s commit to this mission together.
VR Mike
https://www.dvidshub.net/video/854857/get-real-get-better-message-navy-leaders
You Made CDR! Now What?
If you are one of the lucky people who made CDR, I have some things for you to consider:
- The next 2-3 years of fitreps may mean very little to your overall career. First, you are soon going to be in the most competitive group in the Medical Corps, Commanders scratching and clawing to make Captain. If you are at a medium to large command, no matter what you do as a junior Commander, you are likely to get a P (promotable) on your fitreps. That is just how it works for most commands.
- This first bullet means that now is the PERFECT time to do something “alternative” (off the usual career path for a physician) or take a position that you know will get you 1/1 fitreps or be part of a very small competitive group. Go to the War College. Take a senior operational job where you’ll get a 1/1 fitrep. Become a Detailer. Apply for fellowship because the NOB fitreps won’t hurt you as a junior Commander or Commander Select. Now is the time to do these type of things. You don’t want to wait until you are a few years below zone for Captain. When you reach this stage you’ll need competitive EP fitreps.
- After you are selected for your next rank is also a great time to move/PCS. Have you ever been OCONUS? If not, now would be a great time to go. You can PCS somewhere for 2-3 years and then PCS to the command where you are going to set up shop and try to make Captain. At OCONUS commands there is more turnover of staff, so major leadership jobs like MEC President, Department Head, and Director positions open up more frequently, setting you up to get a senior position when you return to CONUS.
- You may think I’m crazy, but it is time to start thinking about how you are going to make Captain. As I mentioned in the first bullet, getting a job that will make you a Captain is tough and competitive. Now is the time to do the things that will make you an excellent candidate for one of those jobs. Want to be a Residency Director? Maybe you should get a degree in adult or medical education. Want to be a Director? Maybe you should get a management degree like a Masters in Medical Management or an MBA. Want to be a senior operational leader? Now is the time to do Joint Professional Military Education I and/or II.
- Here is a list of the jobs that I think will likely make you a Captain. Read the list…figure out which of these jobs you are going to use to make Captain…and get busy preparing yourself to get them:
- Residency Director
- Department Head in a large MTF
- Director
- Chief Medical Officer
- Officer-in-Charge
- Major committee chair
- Medical Executive Committee President
- BUMED staff
- Specialty Leader
- Deployment requiring an O-5 or O-6
- Detailer
- Senior operational leader
- Division/Group/Wing Surgeon
- CATF Surgeon
- Amphib or CVN Senior Medical Officer
Optimally you’ll have the time when you are an O5 to do multiple jobs on the preceding list. For example, as an O5 I had been a Detailer, a Specialty Leader, Department Head, Associate Director, and CO of a deployed unit. My next step was to become a Director at a major MTF, and while I was a senior LCDR and CDR I obtained a Naval Postgraduate School MBA as well as achieved certification as a Certified Physician Executive to try and make myself a competitive candidate for a Director position. Ultimately, I became the Director for Healthcare Business at NMC Portsmouth.
Congratulations on making Commander…take a deep breath…and start thinking about some of the things I mentioned in this post. Before you know it you’ll be in zone for Captain.
Joel Schofer's Career Planning Blog 