The SCRA seeks to ensure that active duty servicemembers don’t have to pay exorbitant interest rates on loans. For that reason, it includes a provision whereby servicemembers can have the interest rates on loans lowered to six percent while they’re on active duty. There are a number of criteria that need to be met in order for a loan to be eligible for a reduced interest rate. First, the loan must have been obtained prior to going on active duty. Second, the interest rate must currently be greater than six percent per year. Third, your ability to pay the higher interest rate must be impacted by your service. Finally, the lender must be notified in writing, and you must provide the lender with a copy of your military orders. It should be noted that this provision applies to accounts either in the servicemember’s name or joint accounts with the servicemember’s spouse. This provision of the SCRA also applies to debts under a bankruptcy plan.
See a sample letter to send to lenders to lower your interest rate to 6%
If you’ve had your property repossessed, have been unable to get your interest rates lowered to 6%, have been hounded by debt collectors, or have had a default judgment entered against you while on active duty in the military, complete the form to the right for a FREE evaluation, or call toll-free 855-301-8100. The legal team at Lemberg & Associates is committed to fighting for your rights under the Servicemembers Civil Relief Act and under other applicable laws.
