Ally SCRA Benefits: 6% Cap on Your Auto Loan
Part of: The Complete Guide to the SCRA
Ally finances a huge share of the cars on the road, so for a lot of service members the SCRA conversation with Ally is about the auto loan. The rule is simple: a loan you signed before active duty gets the 6% cap, late fees waived during protection, and the option to ask for extensions.
On a $30,000 auto loan, cutting the rate to 6% can save real money across a deployment, and Ally forgives the excess interest rather than pushing it down the road.
What you get
| Feature | Statutory SCRA | Ally Auto |
|---|---|---|
| Rate cap on pre-service auto loan | 6% APR | 6% APR |
| Interest above 6% | Forgiven | Forgiven |
| Late fees during protection | Not addressed | Waived |
| Payment extensions | Not addressed | Often available, ask |
| How to file | Written notice plus orders | Call 1-877-713-5101 with orders |
The cap, retroactivity, and forgiveness come from § 3937 and bind Ally like any lender.
How to apply
File your SCRA request with Ally
- Confirm the Ally auto loan was signed before your active-duty start date.
- Call Ally at 1-877-713-5101 (9 a.m. to 6 p.m. ET), or use Ally Auto servicing, to start the request.
- Send a copy of your orders, or a § 3937 letter from the letter generator, showing your duty start date.
- Confirm the 6% rate, the waived late fees, and the retroactive adjustment in writing.
- File up to 180 days after active duty ends, and ask about an extension if a deployment makes payments hard.
Things people trip on
The payment still comes due. SCRA protection lowers the interest and waives late fees, but it does not pause the loan. Ask Ally about a formal extension if you need to defer, rather than just stopping payments.
Pre-service only. A car you financed with Ally after active duty began is not covered by the 6% cap. The Military Lending Act may cap that loan instead.
Auto loans are where lenders slip. Repossession and rate-cap errors on military auto loans have driven federal settlements across the industry. Keep your confirmation, and if a lender breaks the rule, you can make it pay. See where Ally sits on the bank leaderboard.
The law behind this: 50 U.S.C. § 3937
Maximum rate of interest on debts incurred before military service — read the statute.
Frequently asked questions
Does Ally lower my car payment under the SCRA?
If you took out the Ally auto loan before active duty, yes. The SCRA caps the interest at 6% for your whole active-duty period and forgives the interest above 6%, which lowers the finance charge. Your contractual monthly payment structure does not otherwise change, but Ally can often help with extensions.
What does Ally waive for service members?
Ally waives late fees during your SCRA protection period. On retail installment contracts, making late payments can still affect the total finance charges over the life of the loan, so keep paying on time where you can even with fees waived.
How do I request SCRA protection from Ally?
Call Ally toll-free at 1-877-713-5101, 9 a.m. to 6 p.m. ET, or submit your request through Ally Auto servicing. At a minimum you will need a copy of your orders showing your active-duty start date. You can file up to 180 days after active duty ends.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.