Navy Federal SCRA Benefits: What You Need to Know

The Servicemembers Civil Relief Act (SCRA) offers legal and financial protections to active duty service members, making it easier to focus on the mission without the burden of financial stress.

If you’re a Navy Federal Credit Union member, the good news is they go above and beyond the standard SCRA requirements.

I’ve been through this process myself, and I want to share what I’ve learned about how Navy Federal can help you with lower interest rates, foreclosure protections, and much more.

What Is SCRA and How Does Navy Federal Support It?

The Servicemembers Civil Relief Act (SCRA) is a federal law that provides protections and benefits for individuals engaged in military service. The law includes financial relief like a 6% interest rate cap on eligible pre-service debt and protection from foreclosure during active duty.

However, as of April 1, 2022, Navy Federal Credit Union offers an even better deal, lowering the interest rate cap to 4% for eligible accounts.

This is a significant benefit that not only aligns with federal requirements but exceeds them, ensuring you can focus on your service without the stress of high interest rates on debts you incurred before active duty.

Here’s a breakdown of who is eligible for SCRA benefits with Navy Federal:

• All branches of the military (Army, Navy, Marine Corps, Air Force, Space Force, Coast Guard).
• Reservists called to active duty.
• National Guard members with qualifying federal active service.
• Commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration (NOAA).

It’s worth noting that certain members of the National Guard qualify only if their service is authorized by the President or Department of Defense during federally funded emergencies that last more than 30 consecutive days under section 502(f) of title 32.

The National Association of Federally-Insured Credit Unions does a great job of breaking this topic down, which you can read here.

Are My Navy Federal Accounts Eligible for SCRA Benefits?

Your Navy Federal accounts may be eligible for SCRA protections if the debt was incurred before you started active duty. This includes:

It’s important to note that you need to apply for SCRA benefits no later than 180 days after your active duty end date.

If you’re unsure about the details or want to double-check your eligibility, contacting Navy Federal directly can help. The team there is dedicated to supporting service members and ensuring that the financial protections are applied correctly.

Navy Federal SCRA Benefits and the Visa Signature Flagship Rewards Credit Card

One crucial detail to understand about Navy Federal’s SCRA benefits, especially when it comes to their credit cards, is that the waiver of the annual fee only applies to accounts that were opened before you began active duty.

For example, if you hold the Navy Federal Visa Signature Flagship Rewards Credit Card, and you opened the account before starting your military service, you may qualify for a waiver of the $49 annual fee.

This card is a premium option with great rewards:

• 3x points on travel purchases.
• 2x points on everything else, making it ideal for service members who want to maximize rewards on everyday spending.

However, if you opened the card after starting active duty, the annual fee will not be waived under SCRA.

This distinction is essential, as the waiver only applies to fees or interest on debts incurred before entering active duty service. If you’re already a cardholder and you incurred the fee before submitting your SCRA request, Navy Federal will waive it as part of their SCRA protections.

If you attempt to request SCRA annual fee waivers on your Visa Signature Flagship Rewards card that was opened after starting active duty, Navy Federal will respond with this policy message:

Thank You for Your SCRA Protection Request Thank you for your dedicated service to our country.

We have received your request for protection and/or the interest rate reduction on your account(s) under the Servicemembers Civil Relief Act (SCRA) provisions. The very nature of military service often compromises the ability of servicemembers to fulfill their financial obligations. The SCRA provides protection in such an event for financial obligations that were incurred before an active duty period.

We sincerely regret to inform you that we are unable to process your request for relief under the provisions of the SCRA due to the following reason(s):

Loans opened during active military service are not eligible for SCRA coverage and/or a reduction in interest rate.

For service members who opened the Visa Signature Flagship Rewards Credit Card before active duty, this benefit can add up over time, allowing you to enjoy premium perks and rewards without the additional cost of the annual fee.

Always make sure to submit your SCRA request to take advantage of this and other benefits Navy Federal offers to active duty members. Navy Federal also offers several top-tier credit cards with many benefits without annual fees.

How to Qualify for Navy Federal SCRA Benefits

Qualifying for SCRA benefits with Navy Federal involves submitting a formal request along with documentation that verifies your active duty status.

Don’t worry—the process is simple, and you can submit your request through a variety of methods, including online banking, fax, or mail.

Here’s what you’ll need to provide:

• Your initial active duty start date
• The date your active duty orders were issued
• Your branch of service

In some cases, Navy Federal may also request additional documents, such as:

• Call to Active Duty orders
• Recall to Active Duty orders
• Statement of Service (signed by your Commanding Officer)
• Leave and Earnings Statement (LES)

If you’re like me and prefer to get things done quickly, I recommend using their SCRA Benefits Request Form to streamline the process.

You can send this form via eMessage, fax, mail, or even visit a local branch for assistance.

What Happens After You Submit Your SCRA Request?

Once you’ve submitted your request, Navy Federal will review your documentation to confirm your eligibility. If approved, they’ll reduce the interest rate on your pre-service debt to 4%, retroactive to the start of your active duty service.

It’s important to note that this review process can take up to two billing cycles, so don’t worry if you don’t see an immediate change. If you have any questions or need clarification, Navy Federal’s SCRA team can assist.

Can You Get Money Back from SCRA?

One of the most common questions I hear is whether you can get a refund from SCRA benefits, and the answer is yes!

If your interest rate is reduced retroactively, Navy Federal will refund the difference between the higher rate you were paying and the new reduced rate, dating back to the start of your active duty service.

For example, if you were paying 10% interest on a personal loan before active duty and Navy Federal adjusted it to 4%, you could receive a refund of the excess interest charged from the time your active duty began. This can provide a much-needed financial boost, especially if you’ve been serving for an extended period.

Managing Your Navy Federal SCRA Benefits

After you receive your SCRA benefits, it’s essential to stay on top of your loan payments. While SCRA provides valuable protections, it doesn’t eliminate your responsibility to make timely payments. If you’re struggling due to military-related challenges, Navy Federal has additional resources available to help.

If you’re struggling to meet your obligations even with the 4% interest rate, Navy Federal’s Personal Finance Management department is available to explore further options, like loan modification programs through Fannie Mae, Freddie Mac, or other assistance programs.

They understand the unique financial challenges service members face, and they’ll work with you to find a solution that helps.

Foreclosure and Repossession Protections

One of the more significant protections under SCRA is against foreclosure and vehicle repossession. Navy Federal, like other lenders, cannot foreclose on your home or repossess your vehicle during your active duty without a court order. This protection also extends for a period after your active duty service, offering peace of mind if you’re transitioning back to civilian life.

What About My Spouse’s Debt?

Another question I often hear is whether your spouse’s debt qualifies for SCRA protections.

Here’s how it works: SCRA applies to pre-service debt incurred by you as the service member or by you and your spouse jointly. Unfortunately, any debt incurred solely by your spouse or other family members isn’t covered under the SCRA.

However, some states offer additional protections for spouses.

When you submit your SCRA request to Navy Federal, make sure to indicate if you’re seeking state-specific benefits as well. They’ll review your request and let you know what additional protections might be available to you.

Applying for SCRA Benefits with Navy Federal

Applying for Navy Federal’s SCRA benefits is easy, and there are multiple ways to submit your request:

1. Online or Mobile App: Send an e-message through your Navy Federal account or mobile app. In the subject line, write “ATTN: SCRA Servicing.”
2. Fax: Send your documents to (703) 206-3108.
3. Mail: Mail your request to Navy Federal Credit Union, P.O. Box 3302, Merrifield, VA 22119, Attn: SCRA Servicing.
4. Visit a Branch: A representative can assist with submitting your documents.

Make sure to include all required documents, such as your Active Duty orders, and allow up to 30 days for Navy Federal to process your request.

The Bottom Line

Navy Federal’s commitment to military members goes beyond the standard SCRA protections. Their enhanced benefits—like the 4% interest rate cap—provide real, tangible financial relief that can make a world of difference during your time in service.

If you’re eligible for SCRA protections and haven’t yet applied, I highly recommend taking the time to submit your request. It’s a small step that can save you big in the long run.

If you have any questions about SCRA or want to ensure you’re getting all the benefits you’re entitled to, Navy Federal’s SCRA team is there to help guide you through the process. Trust me, it’s worth it.

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