Active duty military needs help with CITI FINANCIAL

[wbarbary]

My husband has been in the military for 19 years and has done so much for his country and his family.


When we moved back to the USA 5 years ago we took out a loan with CITI FINANCIAL and the interest on this loan is super high. (21%)
For years hes has been trying to get a lower interest rate but no luck.

It's been 5 years and we not missed a payment but we have not paid of anything .....all our money is going to interest.
We are PCSing next month, we are struggling and living paycheck to paycheck.

Other banks have reduced our interest rates retro actively in the spirit of SCRA and I just wish CITI would do the same.

I have contacted customer service many times but I don't seem to get anywhere....any suggestions????

[Moto'sMommy]

See if you can get it refinanced through USAA or open a credit card with them and do a BT. I know that no matter how low your current rate on the CC is, they take 2% off for a year when you PCS.

[Jnavarro]

Check into getting a loan with nfcu or usaa. Nfcu helped me out while i was doing my bid. If you credit isnt too great check out Pioneer military loans.

[prosumer]

Also look into PenFed, they are great.

 

I'd like to ask a few questions if it's ok. What is the loan amount, and what kind of loan? Do you have any assets that you can take a loan against (car, boat, motorcycle)? Last resort, has your husband contributed to his TSP? If so, you can take out a general purpose loan against it at the current rate, I believe 1.35 or something close, and pay it off. Remember though, that repaying a TSP loan uses after tax dollars, and it ties up your eligibility to get another loan against it until it is paid off. Also, missing a payment to the TSP loan results in a penalized, taxable withdraw. Again, last resort, but it may make sense if your husband plans to work another career after the military or plans to stay in the military for the life of the loan.

Edited May 21, 2013 by prosumer

[Fuerza]

What are the terms of the loan? 5 years of payment should have netted some results on the original loan. I would lean toward NFCU for a loan and put something up as collateral. USAA is a little strict IMO.

[BobWang]

Navy Federal Credit Union BEFORE he leaves in 20.

[evapor8ted]

Active duty? Servicemembers Civil Relief Act says the interest rate must be 6% until deployment is over.

[Fuerza]

Active duty? Servicemembers Civil Relief Act says the interest rate must be 6% until deployment is over.

Not necessarily.

 

"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 A? 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.

 

Note: This law only covers debt incurred prior to military service."

 

If you sign a loan or credit application while on active duty I wouldn't expect a reduced rate.

[ICANHASMUNY?]

My husband has been in the military for 19 years and has done so much for his country and his family.

 

 

When we moved back to the USA 5 years ago we took out a loan with CITI FINANCIAL and the interest on this loan is super high. (21%)

For years hes has been trying to get a lower interest rate but no luck.

 

It's been 5 years and we not missed a payment but we have not paid of anything .....all our money is going to interest.

We are PCSing next month, we are struggling and living paycheck to paycheck.

 

Other banks have reduced our interest rates retro actively in the spirit of SCRA and I just wish CITI would do the same.

I have contacted customer service many times but I don't seem to get anywhere....any suggestions????

 

 

are you making the regularly scheduled payments or a interest only payment?

 

there is a different fedral law that covers predatory lending to service members

 

 

In 2006 Congress enacted the Talent-Nelson amendment to the John Warner National Defense Authorization Act of 2007 to provide landmark federal protections against predatory lending for Active-duty Service members and their eligible family members. The Department of Defense issued final regulations for the Military Lending Act (MLA), effective for loans written on or after October 1, 2007. Congress amended the MLA as part of the National Defense Authorization Act in late 2012.

 

check to see if this loan is covered by the act.

 

http://www.consumerfed.org/pdfs/MIL-Fact-Sheet-Final-Regs.pdf

 

 

if the loan is structure in a way that you cannot pay it off, I would file a complaint with the CFPB.

 

http://www.consumerfinance.gov/complaint/

 

don't contact customer service at citi - you're dealing with low level employees who can do nothing about it.

 

try an email campaign to the higher ups. or send letters CMRR.