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#1205036 - 06/22/09 01:37 PM 1st Service Member Loan
mstark Offline
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mstark
Joined: Mar 2006
Posts: 336
Bank
We have a customer who is in the service and wanting a car loan. The car loan will be for 2-4 years. I am trying to find what rules we have to abide by. The only one I know for sure is if they go into active duty we must reduce the rate to 6.00%, what else am I missing?
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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1205057 - 06/22/09 02:09 PM Re: 1st Service Member Loan mstark
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If they are currently in the military sevice then they are already active duty and the rate reduction will not apply to them regardless where they are deployed to at a later date.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1205061 - 06/22/09 02:11 PM Re: 1st Service Member Loan Dan Persfull
mstark Offline
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mstark
Joined: Mar 2006
Posts: 336
Bank
any special disclosures for SCRA?
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#1205065 - 06/22/09 02:15 PM Re: 1st Service Member Loan Dan Persfull
mstark Offline
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mstark
Joined: Mar 2006
Posts: 336
Bank
Also, since the lady is already active when applying for the loan does that mean we can charge 9.00% and not have to reduce her rate?
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#1205792 - 06/23/09 01:49 PM Re: 1st Service Member Loan mstark
chenin Offline
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chenin
Joined: Jul 2007
Posts: 2,120
As long as she is currently active duty you do not have to give her 6%. The rate reduction only comes into play if she had a loan before becoming active duty.

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#1223544 - 07/28/09 06:38 PM Re: 1st Service Member Loan chenin
Noah Wiseman Offline
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Joined: Jul 2007
Posts: 182
Be sure that her status while applying is active duty. If she is in the National Guard or Reserves, then her most likely status is inactive.

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