Benefits of SCRA and MILITARY STAR Card don’t always intersect
MEDIA CONTACT: Conner Hammett
MEDIA ADVISORY: 13-050
RELEASE DATE: Aug. 14, 2013
DALLAS – The Servicemembers Civil Relief Act (SCRA), introduced in 1940 as the Soldiers and Sailors Civil Relief Act, was established to protect active duty service members from what might happen to their financial or legal obligations after they start military service.
Decades later, the Military Star TM Card was established in response to military leadership’s concerns regarding a growing number of rent-to-own, pay-advancement schemes and unacceptably high interest rate scams that military personnel were encountering.
Today, the Military Star Card and SCRA both serve to protect our military, but it can be confusing to find where one ends and the other begins.
While interest rates offered by the Military Star TM Card are very competitive with industry leaders, the card is usually subject to the interest rate agreed upon at the beginning of the contract, not the special interest rates that apply to debt incurred prior to military service under the SCRA.
“The SCRA is a great way to ease the transition to active duty life and reduce service members’ existing financial burden,” said the Exchange’s Senior Enlisted Advisor Chief Master Sgt. Chief Tony Pearson. “However, the special interest rates guaranteed by the SCRA apply only to debt incurred before the start of military service, not to purchases made while on active duty.”
The SCRA benefits Military Star TM Card holders under certain circumstances: Since many reservists are not considered active duty but are entitled to Exchange privileges, reservists with Military Star TM Card accounts can see interest on existing Military Star TM Card balances reduced to 6 percent under the SCRA when activated.
For more information about the Military Star TM Card, visit www.shopmyexchange.com/ExchangeCredit/. For more information about SCRA, visit www.military.com/benefits/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html.
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The Army & Air Force Exchange Service is a joint non-appropriated fund instrumentality of the Department of Defense and is directed by a Board of Directors which is responsible to the Secretaries of the Army and the Air Force through the Service Chiefs of Staff. The Exchange has the dual mission of providing authorized patrons with quality merchandise and services at competitively low prices and generating non-appropriated fund earnings as a supplemental source of funding for military morale, welfare and recreation programs. To find out more about the Exchange history and mission or to view recent press releases please visit our Web site at http://www.shopmyexchange.com.
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Media Notes:
For more information or to schedule an interview with an Exchange representative please contact Conner Hammett,214-312-2132 or [email protected].
