"Given all the varieties of bank-perpetrated mortgage fraud that have come to light in recent years, one that got comparatively little attention were abuses under the Servicemembers Civil Relief Act. SCRA shields active duty servicemen, who cannot be the target of civil until their tour of duty has been completed. That means, among other thing, bankruptcies, foreclosures and even divorces are put on hold. Recent amendments include capping the interest rate on most types of debt at 6%.
Despite the clear provisions of the law, mortgage services were found to be violating on a widespread basis, both by failing to reduce interest charges to 6% and on foreclosing on military personnel who were deployed."
