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SSCRA and Repo (Government & Administrative Law)

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• Sun, 07 Nov 2004 13:15:00 GMT(1)
• The only problem that I see for you is that you stated that the loan was taken out while your husband was on active duty. If that is the case, then the SSCRA does not apply because it only sets a 6% cap on interest for loans taken out prior to military service.
• Sat, 24 Jul 2004 16:22:00 GMT(2)
• And what did JAG say when you asked them? A problem that I see is that the SSCRA loan reduction is not automatic, nor is it simply a matter of your asking it be reduced.
  What you are referring to is found in 5 U.S.C. App. 526:
  "No obligation or liability bearing interest at a rate in excess of 6 percent per year incurred by a person in military service before that person's entry into that service shall, during any part of the period of military service, bear interest at a rate in excess of 6 percent per year unless, in the opinion of the court, upon application thereto by the obligee, the ability of such person in the military service to pay interest upon such obligation or liability at a rate in excess of 6 percent per year is not materially affected by reason of such service, in which case the court may make such order as in its opinion may be just. As used in this section the term "interest" includes service charges, renewal charges, fees, or any other charges (except bona fide insurance) in respect of such obligation or liability."
  So, what was the interest rate PRIOR to his entry into service?
  And what, if anything, did they 'adjust' it to after request?
  And finally, what EXACTLY were your actions to try to get the adjustment?
  For more, go to:
  http://usmilitary.about.com/library/milinfo/sscra/blchap3-7.htm
  http://www.bankersonline.com/compliance/ci-sscra.html
  http://www.dod.mil/specials/Relief_Act_Revision/
• Mon, 08 Nov 2004 05:44:00 GMT(3)

• Quote:

  Originally Posted by Tankerwife

  What is the name of your state?KY
  We had a car loan with Fort Knox Federal Credit Union. The loan was taken out while my husband was Active Army.
  He ets'd in Nov 1999, we moved in July 2 and he was deployed with the NG Nov 2 .
  While he was deployed to Bosnia, we fell behind on the car payments. I sent notification several times to the CU to reduce the interest rate. They refused saying the loan was taken out while he was on Active Duty and that Bosnia was not considered a War Zone, which it is, his wages wer tax-exempt.
  They repo'd the car June 2 1.
  Do we have any recourse? The repo happpened while he was on deployemnt orders for the NG to Bosnia. Our income was also reduced because I had to quit my job to be closer to our kids. I was commuting 1 miles one way to my job. HELP!

  Just because your husbands wages were tax exempt does not mean he was in a war zone. If he was in an AOR that was considered hazardous, or in a hostile fire area, then he would still get tax exempt status. That does not translate to "War Zone". The CU did not have to lower the interest rate. I think they should have, but they were not required to.
  Sorry to hear about the repo. It sucks to have things like that happen when your spouse is far, far away.
• Mon, 09 Aug 2004 23:20:00 GMT(4)
• Even though this is an old question, I am still posting this reply for anyone else that may have this question. There is a name below that will give you (in my case) same day answers.
  I am sorry that I haven't checked this site for a while. This SCRA stuff is still fresh in my mind having researched it for my son in the past few months. I hope in the meantime, someone has been sympathetic enough to help you with this problem, but as far as the SCRA goes, this interest reduction does apply to installment loans incurred prior to active duty. And trust me, some companies still give a hard time about granting it. And by the way, that bankersonline.com will give you quick answers. This is the man I questioned, even after having all the info I needed, I still needed someone's help. Andy Zavoina CRCM
  BankersOnline.com
  1800 Crestview Dr.
  Killeen, TX 76549-1122
  (254) 526-8798
  (888) 229-8872 x804
  (512) 233-0649 fax
  Good luck with this problem. I hope something goes right for you.
  108th Congress Report
  1st Session HOUSE OF REPRESENTATIVES 108-81
  ======================================================================
  SERVICEMEMBERS CIVIL RELIEF ACT
  _______
  April 30, 2003.--Committed to the Committee of the Whole House on the
  State of the Union and ordered to be printed
  SEC. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE MILITARY
  SERVICE.
  ``(a) Interest Rate Limitation.--
  ``(1) Limitation to 6 percent.--An obligation or liability
  bearing interest at a rate in excess of 6 percent per year that
  is incurred by a servicemember, or the servicemember and the
  servicemember's spouse jointly, before the servicemember enters
  military service shall not bear interest at a rate in excess of
  6 percent per year during the period of military service.
• Sun, 25 Jul 2004 00:04:00 GMT(5)
• "JAG at first thought we had enought to pursue a claim and receive triple damages but then they found out it was a loan taken out while he was prior active duty."
  * Unless there is something that you didn't tell the JAG office about the loan.... I presume they knew what they were doing when they made their decision that the SSCRA didn't (apparently) affect the loan.
• Sat, 24 Jul 2004 18:49:00 GMT(6)

• Quote:

  Originally Posted by JETX

  And what did JAG say when you asked them? A problem that I see is that the SSCRA loan reduction is not automatic, nor is it simply a matter of your asking it be reduced.
  What you are referring to is found in 50 U.S.C. App. 526:
  "No obligation or liability bearing interest at a rate in excess of 6 percent per year incurred by a person in military service before that person's entry into that service shall, during any part of the period of military service, bear interest at a rate in excess of 6 percent per year unless, in the opinion of the court, upon application thereto by the obligee, the ability of such person in the military service to pay interest upon such obligation or liability at a rate in excess of 6 percent per year is not materially affected by reason of such service, in which case the court may make such order as in its opinion may be just. As used in this section the term "interest" includes service charges, renewal charges, fees, or any other charges (except bona fide insurance) in respect of such obligation or liability."
  So, what was the interest rate PRIOR to his entry into service?
  And what, if anything, did they 'adjust' it to after request?
  And finally, what EXACTLY were your actions to try to get the adjustment?
  For more, go to:
  http://usmilitary.about.com/library/milinfo/sscra/blchap3-7.htm
  http://www.bankersonline.com/compliance/ci-sscra.html
  http://www.dod.mil/specials/Relief_Act_Revision/

  
  JAG at first thought we had enought to pursue a claim and receive triple damages but then they found out it was a loan taken out while he was prior active duty.
  So does 50 U.S.C. App. 526 actually state we can ask for a reduction in the interest rate? Confused.
  The interest rate was 9.5% and for some reason it kept climbing. That's a whole different issue.
  The CU did not adjust the rate at all, they flat refused to do anything.
  My actions were to send certfied letters to request the reduction.
  I guess my biggest question is, did they infringe on any rights by repoeing th e car while my husband was deployed?
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