Do all SCRA protections apply automatically to spouse? For example does the 6% rate cap apply to a credit only in the name of spouse (non servicemember)? Servicemember is not co-applicant or co-borrower.

Dependents, including spouse, do not receive SCRA protection unless it is joint obligation with the servicemember or the servicemember provides at least 50% support for the dependent. Also, check your state military/veteran code for additional protections.

or the servicemember provides at least 50% support for the dependent.

I've haven't seen this before. Where is the citation for this statement? I would be interested in reading that section since I may have overlooked it.

The spouse is not entitled to the rate reduction to 6% unless the active servicemember is directly or indirectly (co-signer/guarantor) legally liable on the obligation and it was obtained prior to active service.

That is the definition of a dependent.

(4) DEPENDENT- The term 'dependent', with respect to a servicemember, means--

(A) the servicemember's spouse;

(B) the servicemember's child (as defined in section 101(4) of title 38, United States Code); or

(C) an individual for whom the servicemember provided more than one-half of the individual's support for 180 days immediately preceding an application for relief under this chapter.


It has noting to do with the 6% limitation:

§ 3937. Maximum rate of interest on debts incurred before military service.

(a) INTEREST RATE LIMITATION-

(1) LIMITATION TO 6 PERCENT- An obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or the servicemember and the servicemember's spouse jointly, before the servicemember enters military service shall not bear interest at a rate in excess of 6 percent --

Thanks Dan and Reg Warrior. That was our interpretation.