For a borrower in active military service, what happens to collections?

When a borrower is in active military service, collections must cease immediately due to the protections provided under the Servicemembers Civil Relief Act (SCRA). This law is designed to ensure that military personnel can focus on their duties without the added stress of financial pressures, including debt collection activities. Under the SCRA, debt collectors are restricted from pursuing collections against active duty servicemembers, which includes halting any collection efforts on existing debts.

This immediate cessation is important as it acknowledges the unique challenges faced by active duty members, allowing them to manage their financial obligations without detracting from their military responsibilities. It also provides the necessary legal framework that institutions must adhere to when dealing with active military personnel.