SCRA vs. MLA: Your Military Interest Rate & Fee Protections
Two federal laws. Different coverage. Most military members are leaving hundreds of dollars on the table.
Section 1 The One-Sentence Distinction
Servicemembers Civil Relief Act
Covers debt you had before you joined.
- Covers accounts opened before active duty
- Caps interest at 6% APR on pre-existing debt
- Not automatic — you must request it
- You have a 180-day deadline after separation to claim retroactively
- Covers: credit cards, mortgages, auto loans, student loans, leases
- Applies to: active duty + National Guard/Reserve on Title 10 federal orders for 30+ days
Military Lending Act
Covers debt you open while on active duty.
- Covers accounts opened during active duty
- Caps total cost at 36% MAPR — effectively wipes annual fees at most issuers
- Automatic for covered products — the issuer checks your status at application
- Also covers your military spouse and Tricare-eligible dependents
- Covers: credit cards, personal loans, payday loans opened while on active duty
- Does not apply to accounts opened before active duty (that's SCRA's job)
Section 2 What This Means for Credit Card Annual Fees
This is where the SCRA/MLA distinction has real dollar consequences. The scenario you were in when you opened the card determines which law applies — and whether the annual fee disappears.
| Scenario | Which law | Result |
|---|---|---|
| Opened Amex Platinum before commissioning, now on active duty | SCRA | Interest reduced to 0% (Amex exceeds SCRA's 6% legal floor). Annual fee waived at Amex's discretion — Amex voluntarily waives. |
| Opened Chase Sapphire Reserve on Day 1 of active duty | MLA | Annual fee fully waived — legally required. The $795 fee goes to $0 for your entire service period. |
| Opened Capital One Venture X while on active duty | WARNING | Capital One does not waive fees under MLA for accounts opened during service. The $395 fee is not covered. Verify before applying. |
| Opened a credit card 3 years after separating | NEITHER | No protections apply post-service. Standard civilian terms. |
Bank-by-Bank Coverage
| Issuer | SCRA | MLA fee waiver | Notes |
|---|---|---|---|
| American Express | Exceeds legal req. | Best in class. Applies to accounts opened before and during service. Provides retroactive refunds if you didn't claim immediately. | |
| Chase | Must submit military orders. Secure message via chase.com or call. Applies to accounts opened before and during service. | ||
| Citi | Email [email protected]. Note: must maintain a balance greater than $0 on the statement when the annual fee posts for MLA protections to trigger. | ||
| Bank of America | Call customer service and request the SCRA department. Less publicized than Amex/Chase; allow 14–21 business days. | ||
| Capital One | Only SCRA on accounts opened before active duty. Do not open Capital One cards during service expecting fee waiver — you won't get one. | ||
| Wells Fargo | Call the number on the back of your card. Less military-forward in process than Amex/Chase. | ||
| Navy Federal (NFCU) | Military-chartered credit union — rates are already low. SCRA/MLA apply. Typically very member-favorable. | ||
| PenFed | Credit union. Complies with SCRA/MLA. Call member services to request benefits documentation review. |
Section 3How to Claim SCRA/MLA (Step by Step)
Issuers do not proactively find you. You must contact them. Click each issuer below to see the exact process.
- Call 1-800-253-1720 or use the Amex app (Account Services → Military Benefits)
- Say: "I'm requesting SCRA and/or MLA benefits for my account."
- Upload a copy of your orders or LES showing active duty status. Fax option: 1-888-832-6092.
- Amex processes within 1–2 billing cycles and refunds any fees already paid on the current statement period.
- Amex applies benefits to all of your Amex cards automatically — you don't need to call for each one.
- Log in to chase.com → Secure Message Center (no hold time)
- Subject: "SCRA/MLA Military Benefits Request"
- Attach your orders or Active Duty Certificate (DD Form 214 not needed — orders are enough)
- Or call 1-877-469-0110 if you prefer phone
- Allow 2–3 billing cycles for processing. Annual fee credit posts to your account.
- Email [email protected] — this is the fastest path, no hold time
- Include in the email: full name, last 4 of SSN, account number(s), and a copy of your orders
- Citi typically processes within 2 weeks
- Phone option: call the number on the back of your card and ask for the SCRA/MLA department
- Visit capitalone.com/military/relief
- Submit the online SCRA form with a copy of your orders
- Capital One will reduce interest to 6% on accounts opened before active duty
- Call the number on the back of your card
- Ask to be transferred to the SCRA department
- Have your orders ready — Bank of America accepts fax or digital uploads
- Allow 14–21 business days for processing
Section 4SCRA Beyond Credit Cards
SCRA covers far more than annual fees. These protections apply to pre-service obligations — anything you had before you went on active duty.
Mortgage
Cap your pre-service mortgage rate at 6%. Lender must reduce it upon receiving written notice plus a copy of your orders. Also provides protection against foreclosure without a court order during active duty.
Auto Loans
6% interest cap on pre-service auto loans. SCRA also prohibits repossession of your vehicle without a court order while you're on active duty — even if you miss payments.
Student Loans
Federal loans have their own military deferment programs. Private student loans fall under SCRA's 6% interest cap. Check both your federal servicer and any private lenders separately.
Lease Termination
You can terminate a housing or vehicle lease early with no penalty if you receive PCS orders or deployment orders of 90+ days. Required: written notice to the landlord plus a copy of your orders.
Section 5Common Mistakes
- 1Not claiming it at all. Issuers don't proactively identify you as military. You must contact them. Not claiming SCRA/MLA on two premium cards is easily $1,000+ per year left on the table.
- 2Assuming Capital One covers MLA fees on new accounts. They don't for accounts opened during service. The Venture X fee ($395/yr) is not waived under MLA. Don't open it during service expecting coverage — you won't get it.
- 3Waiting until PCS or deployment to claim. You can — and should — claim SCRA and MLA benefits the day you go on active duty. There's no benefit to waiting, and you may miss retroactive fee refunds.
- 4Closing the card to avoid fees. If MLA is waiving your annual fee, you're paying nothing. Closing a card triggers future sign-up bonus ineligibility at that issuer, and hurts your credit utilization ratio and average account age.
- 5Thinking SCRA covers accounts you opened during service. It doesn't — SCRA only covers pre-service accounts. MLA covers accounts opened during service. Get the law wrong and you apply to the wrong issuer program and get denied.
FAQCommon Questions
If you opened the account before your active duty start date, SCRA applies — not MLA. This means the issuer is legally required to reduce your interest to 6%, but is not legally required to waive the annual fee. Many issuers (Amex, Chase, Citi) voluntarily waive the fee anyway on pre-service accounts, so contact them and ask — you'll likely get the waiver even if it's not a legal requirement for that specific account.
SCRA protects the servicemember — not a spouse's independent accounts. MLA, however, covers your military spouse and Tricare-eligible dependents on accounts they open during your active duty period. Practically speaking: if your spouse opens a Chase Sapphire Preferred while you're on active duty and is listed as a covered dependent, they may be entitled to the MLA fee waiver. Verify with each issuer, as implementation varies.
MLA and SCRA protections end when your active duty period ends. Issuers will resume charging annual fees typically on the next billing cycle after your separation date. The card itself doesn't close — you just start paying the civilian annual fee. At that point, decide whether the card's rewards justify the cost. Many veterans cancel cards they can no longer afford post-service; do this before the next annual fee posts to avoid paying it.