Here is scenario that came out of a discussion on SCRA compliance.

We have charged off an auto loan and we still attempt to collect on it. The debtor is now going into the military service, active duty, so they will be covered under the SCRA. Actions that we must take:

1: We will need to re-work the charge off and assign it a 6% interest rate inclusive of all fees.

2: We would also need to subtract out all of the fees that were in the charge off.

Are these actions correct?

The protections will kick in when the person is covered under teh SCRA. So your interest rate drops to 6% including fees from that date forward, but the amounts already owed, are already owed. They are not dismissed. If you don't have the vehicle yet, repossession will be harder.

Thank you for your help!

If a borrower on active duty has an account that is ready to be charged off (deliquent at the reduced rate), is there anything in SCRA that prohibits a lender from charing off the account?

Charge off is an accounting function.