Question: I enjoyed your article outlining the Soldier's and Sailor's Civil Relief Act. Does the 6% rate cap apply only to current accounts, or must it be applied to delinquent accounts as well?
Answer: The pertinent statute, Section 326 of the SSCRA, says that no obligation of a serviceperson, incurred prior to military service, shall bear interest at a rate greater than 6% during the period of military service. That means that preservice debt, regardless of whether current or delinquent, is subject to a 6% cap during the period of military service.
The original version appeared in the July/August 2003 edition of the Oklahoma Bankers Association Compliance Informer.
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