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Entering or active duty military service members are offered financial protections under the 2003 Service Members Civil Relief Act that help them avoid expensive financing like payday loans. They are unable to be foreclosed upon, any debt they incur prior to or during service may not accrue interest of over six percent, and if they are reassigned, they may cancel a lease.

Bank of America has improved and extended these benefits to soldiers after active duty ends.

Under the SCRA, all provisions end at the close of active duty. However, an uncapped interest rate may not be retroactively applied to debts. Bank of America is capping its interest rate at four percent and will extend the protections under the law to one year following discharge.

The bank will also provide military homeowners with support in mortgage refinancing.

If solders owe more than their residence is worth, the bank will help them. Under the majority of mortgage modification programs, interest on the debt is reduced. Bank of America has committed to reducing the principal portion to “as low as 100% of the current market value.”

Based on the depressed status of the housing market, this could represent a significant amount.

The bank is also offering lower interest rates, capping loan rates at four percent, which is under the legislated limit. Extended repayment terms are another feature offered by the bank, which created a special unit to deal solely with military mortgages.

Bank of America even has military credit cards featuring a lower APR than traditional cards.

Bank of America is not alone in attempts to help military families with debt. JP Morgan recently announced that it will also limit interest rates to four percent or lower. It has committed not to foreclose on an active duty member even if the person is not protected under SCRA.

Enhanced forms of loan modification are also in the works, says the bank.