Entitled to SCRA Relief?
Answer by Dan Persfull, BOL Guru Guru Bio
Question: This question is in reference to the Soldiers and Sailors Relief Act. Our company extended a loan to an individual in August of 2006. The customer notified us in August of 2008 that she was in the military for 90 days in 1997 and was entitled to the rate reduction. Additionally, after the loan was made the client married an individual that is in the military. Our customer feels she is entitled to the relief since her husband is in the military even though he is not a signer on the loan.
Answer: First, you should note that the name of the law has been revised to "Servicemembers Civil Relief Act."
Her being active duty for only 90 days in 1997 has no bearing on her SCRA eligibility for a loan made in 2006. Dependents of servicemembers are entitled to relief under certain sections, but they are not entitled to a rate reduction on an individual loan in their name only.
This excerpt is from section 207 of the SCRA [50 App U.S.C. 527]: ". . . An obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or the servicemember and the servicemember's spouse jointly, . . . ".
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