Legislation introduced by Sen. Patty Murray, D-Wash., would cap interest rates for troops on loans, mortgages and credit cards at 3 percent, according to a report from Military Times. Those eligible for hostile-fire pay or imminent-danger pay would pay no interest.
She introduced the SCRA Enhancement and Improvement Act of 2016 last week to increase protections under the Servicemembers’ Civil Relief Act. The SCRA caps at 6 percent the interest on debts service members had before they were called to active duty. This applies to National Guard and Reserve members.
“In recent years, we’ve seen our service members subjected to predatory practices and unfair treatment on several fronts, from overcharges on their student loans, to foreclosures on their homes when they’re deployed. That is simply unacceptable,” Murray said in a statement.
Military Times spoke to a representative of an organization that advocates for the military who said the interest rate in the bill “seems awfully low,” and could result in military members not being able to secure loans.
However, Kerry Arndt, a spokeswoman for Murray, says the bill prohibits lenders from denying loans or credit because of the bill’s protections.
