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Retroactive SRCA


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3 replies to this topic

#1 grumpalot

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Posted 18 April 2012 - 03:25 PM

Hello, new to the sites.

I have just a few questions. I enlited into active duty August 27, 2008. In February of 2009 right before I left for Korea I asked my bank to lower my credit card APR to 6% via the SCRA. It was not in writting but was verbaly agreed upon and I turned in a copy of my orders. I never really knew what to do after that point. My card was never lowerd to 6% well I just left active duty January of 2012 and have learned for information on the SCRA. I went back to the Credit Union and asked them again to forgive all APR of 6% or more that had accrued on my account past the date of August 27 2008.

They replied that they never received a copy of my orders and never received the request. They also said that It was my responsibility to check and make shore the % rate had been droped and now that I am out of active duty that It no longer applies. I then mentioned that I had droped of my orders and verbaly asked to where they responded that they will forward the paperwork to their attorneys. I had very hard times in the military paying for my bills with 4 accounts going to collections in Basic and Korea. I took a 1k a month drop in paycheck when I joined as well.

So my question is what should I do? I know this is one of the best places to look and ask. Should I expect to get an attorney?

I had the same problem with Capitol One. They had my APR at 30% and my minimum payments sky rocketed to 300 and the account built up 1k charges in interest and late fees on a 500 card.

I know I should have checked to make shore, but at being a new soldier and still not knowing the laws. How was I supposed to know exactly what the SCRA law said and how to approch it.

Thanks for any answers or suggestions.



#2 tiggerlgh

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Posted 19 April 2012 - 01:22 PM

Not an expert but this may help..

http://www.philadelp...equirements.cfm
Interest Rate Reductions
Section 527 of the SCRA requires that for debts entered into by service members or service members and spouses jointly before the service member enters military service, the interest rate cannot exceed 6 percent during the period of military service and one year thereafter for mortgages or 6 percent during the period of military service for nonmortgage debt. Interest includes all fees and charges associated with the loan. Interest in excess of 6 percent must be forgiven and not deferred. Creditors must also adjust the periodic payments on the loan to reflect the reduced interest rate.

The protections under §527 are triggered when a service member sends written notice to the creditor and includes a copy of the military order calling the service member to military service. The notice can be sent to the creditor as late as 180 days after the date of the service member's termination or release from military service. After the notice is received, the creditor must adjust the loan retroactive to the date on which the service member was called to military service. Note, however, that §527© permits a creditor to seek relief from the interest rate cap if it can demonstrate “the ability of the servicemember to pay interest upon the obligation or liability at a rate in excess of 6 percent per year is not materially affected by reason of the servicemember's military service.”


Good Luck!

Thanks for serving!

#3 grumpalot

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Posted 19 April 2012 - 03:43 PM

Wow, that is great information to see. I have been looking and saw nothing about section 527.

I have no idea what the bank was leaning toward by saying they would send the paperwork to their attorneys. But it looks like now I have to sit around and let their legal team look everything over.

I also spoke with Capitol One and they easly and quickly answerd me to resend my paper work and they would fix all APR above 6% that had accrued on my account after August 27 2008.

I have 2 other cards that went to collections also that were in the same boat but they said they wrote off the debt and sold it so they no longer have to abide by the rules. And of course the collection company just laughs and says we do not charge you interest but some how the bill keeps going up.

Thanks again for future comments and suggestions

#4 grumpalot

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Posted 02 May 2012 - 04:52 PM

Hello there,

Just to give a quick update one my situation.

Capitol One accepted the SCRA request and deleted 900$ in late charges and fees. The account is now considered Pain in Full

My local credit card company also accepted the SCRA and credited 600$ in fees back to my account.




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