Thread Options
#1021305 - 08/15/08 05:58 PM SCRA and Fees
tickledpink Offline
Junior Member
Joined: Feb 2006
Posts: 37
I know we cannot charge late fees when the borrower is on active duty. Are there any other fees that we cannot charge? What if the borrower filed bankruptcy?

Return to Top
Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1021461 - 08/15/08 07:21 PM Re: SCRA and Fees tickledpink
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,465
Bloomington, IN
From 607:

(d) INTEREST- As used in this section, the term `interest' includes service charges, renewal charges, fees, or any other charges (except bona fide insurance) with respect to an obligation or liability.

This definition pretty well engulfs all fees associated with a loan as interest. Therefore you could not charge any "fee" that would cause your interest rate to exceed 6%.

Not sure about your bankruptcy question. What kind of fee would you charge someone if they filed for bankruptcy?

If by some chance you are inquiring about legal fees, that would be a matter for the judge to approve since you would have to had gotten court approval before beginning any legal collection activity to begin with.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1021862 - 08/18/08 01:11 PM Re: SCRA and Fees Dan Persfull
tickledpink Offline
Junior Member
Joined: Feb 2006
Posts: 37
I'm auditing a SCRA loan and I see Bankkrupty fees charged which I have to investigate further.

Thanks for the info.

Return to Top
#1021917 - 08/18/08 02:10 PM Re: SCRA and Fees tickledpink
tickledpink Offline
Junior Member
Joined: Feb 2006
Posts: 37
Dan, is it 607 or section 207? I can't seem to find 607.

Thanks

Return to Top
#1021925 - 08/18/08 02:19 PM Re: SCRA and Fees tickledpink
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,465
Bloomington, IN
It's 207(d). Sorry about the typo.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1022038 - 08/18/08 04:10 PM Re: SCRA and Fees Dan Persfull
tickledpink Offline
Junior Member
Joined: Feb 2006
Posts: 37
Thanks Dan. I appreciate the help.

Return to Top

Moderator:  Andy_Z