H.R. 3159 — Improving SCRA Benefit Utilization Act

This section revises the financial literacy training program for members of the armed forces (10 U.S.C. 992) to require training on consumer financial protections afforded to members and their dependents under the law, including protections regarding interest rate limits under section 207 of the Servicemembers Civil Relief Act (50 U.S.C. 3937) (i.e., 6% cap on interest accruing on certain pre-service debts during active duty); and (2) to include knowledge and use of such interest rate protections in measuring members' financial preparedness under subsection (d)(1). (As background, the program requires training at multiple points in a service member's career, including initial entry, duty station changes for junior enlisted and officers, Thrift Savings Plan vesting, major life events, deployments, and separation or retirement.)

This section requires each Secretary concerned to provide written notice of benefits under the Servicemembers Civil Relief Act (SCRA)—which offers civil protections such as lease terminations, mortgage forbearance, and court stay provisions to active-duty servicemembers—at specific times, including (1) upon a person's first entry into military service; and (2) for reserve component members, (A) upon first entry into reserve service and (B) upon mobilization or individual call or order to active duty for more than 30 days.

This section amends the implementation requirements of the Servicemembers Civil Relief Act (SCRA) 6% interest rate cap on servicemember pre-military service debts (50 U.S.C. 3937(b)). It (1) requires a creditor receiving notice and proof of service for one such obligation or liability to apply the cap to all pre-service obligations or liabilities of that servicemember to the creditor, whether or not specifically mentioned in the notice (thus expanding from the previously noticed debt only); and (2) requires creditors to provide mechanisms enabling servicemembers to submit required documents online, by mail, or by fax, at the servicemember's election. (As background, the SCRA caps interest at 6% during military service—and one year thereafter for mortgages—forgives excess interest, and reduces periodic payments by the forgiven amount.)