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Servicemembers Civil Relief Act QUESTIONS

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  • Servicemembers Civil Relief Act QUESTIONS

    I have been reading about all of this online. Im curious if anyone has taken advantage of this? Im not sure on the first steps i need to take to get started. What paperwork do i need to provide to the company i am in debt to? They dont seem to know what im talking about by this. If anyone out there has any info please PM me. I would greatly appreciate any help i can get with this. Thank you..

    this is the part that i am interested in.. I have a large chunk of pre-enlistment debt that is at 18% interest and killing me...

    Clarifies and restates existing law that limits to 6 percent interest on credit obligations incurred prior to military service or activation, including credit card debt, for active duty servicemembers. The SCRA unambiguously states that no interest above 6 percent can accrue for credit obligations (that were established prior to active duty or activation) while on active duty, nor can that excess interest become due once the servicemember leaves active duty – instead that portion above 6 percent is permanently forgiven. Furthermore, the monthly payment must be reduced by the amount of interest saved during the covered period.

  • #2
    Re: Servicemembers Civil Relief Act QUESTIONS

    This is for when you're mobilized. All you need to do then is send a copy of your MOB orders to your creditor and they will lower your interest rate to 6%.
    Its been a fairly simple process for everyone I know that has done it.

    Comment


    • #3
      Re: Servicemembers Civil Relief Act QUESTIONS

      Yes, easy beans. I'm debt free so didnt take advantage of it but others have said you do have to go to them afterwards and make sure to have them change it back, otherwise sometime down the road you are going to be stuck paying that percentage back.

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      • #4
        Re: Servicemembers Civil Relief Act QUESTIONS

        I used this with a few of my financial institutions. Contact them directly, they will tell you exactly where you need to Fax your documents to and usually are helpful with paperwork.

        Discover Card was especially helpful with me.

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        • #5
          Re: Servicemembers Civil Relief Act QUESTIONS

          Originally posted by Ryan19
          I have been reading about all of this online. Im curious if anyone has taken advantage of this? Im not sure on the first steps i need to take to get started. What paperwork do i need to provide to the company i am in debt to? They dont seem to know what im talking about by this. If anyone out there has any info please PM me. I would greatly appreciate any help i can get with this. Thank you..

          this is the part that i am interested in.. I have a large chunk of pre-enlistment debt that is at 18% interest and killing me...

          Clarifies and restates existing law that limits to 6 percent interest on credit obligations incurred prior to military service or activation, including credit card debt, for active duty servicemembers. The SCRA unambiguously states that no interest above 6 percent can accrue for credit obligations (that were established prior to active duty or activation) while on active duty, nor can that excess interest become due once the servicemember leaves active duty – instead that portion above 6 percent is permanently forgiven. Furthermore, the monthly payment must be reduced by the amount of interest saved during the covered period.

          PM me and I can send you a sample letter. Works great for BCT, AIT and any mobs. Got my house and auto notes lowered to 6% Plus a myriad of other cards, etc... the only thing they don't work on is Federal Student Loan notes.

          Comment


          • #6
            Re: Servicemembers Civil Relief Act QUESTIONS

            Originally posted by jmclaughlin1701
            PM me and I can send you a sample letter. Works great for BCT, AIT and any mobs. Got my house and auto notes lowered to 6% Plus a myriad of other cards, etc... the only thing they don't work on is Federal Student Loan notes.
            Ok...well that is news to me because I was told that it didnt apply for BCT or AIT

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            • #7
              Re: Servicemembers Civil Relief Act QUESTIONS

              Originally posted by RSP NCO
              Ok...well that is news to me because I was told that it didnt apply for BCT or AIT
              Staff Sergeant,
              Just to testify additionally to that statement, I was covered under this while I was in BCT and AIT.

              Comment


              • #8
                Re: Servicemembers Civil Relief Act QUESTIONS

                From the definitions in SCRA:

                (2) MILITARY SERVICE- The term `military service' means--

                (A) in the case of a servicemember who is a member of the Army, Navy, Air Force, Marine Corps, or Coast Guard--

                (i) active duty, as defined in section 101(d)(1) of title 10, United States Code, and

                (ii) in the case of a member of the National Guard, includes service under a call to active service authorized by the President or the Secretary of Defense for a period of more than 30 consecutive days under section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by Federal funds;


                101(d)(1) says:

                (d) Duty Status.— The following definitions relating to duty status apply in this title:
                (1) The term “active duty” means full-time duty in the active military service of the United States. Such term includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. Such term does not include full-time National Guard duty.
                (emphasis added)

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                • #9
                  Re: Servicemembers Civil Relief Act QUESTIONS

                  Contact your full-time Judge Advocate. Just about every office has a fill-in-the-blank form to send to creditors. Yes, at least in Maine, everyone who can take advantage of it, does take advantage of it.

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