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#15554 - 04/16/02 09:11 PM SSCRA
Ed Lampman Offline
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Ed Lampman
Joined: Jun 2001
Posts: 20
Beaumont, Texas, USA
Is anyone aware of a restriction that would prohibit the addition of Vendors Single Interest Insurance on an auto loan to a military customer under SSCRA?

Thanks

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#15555 - 04/17/02 04:32 PM Re: SSCRA
Andy_Z Offline
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Andy_Z
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I don't think there would be a prohibition. You might have more of a fight that you normally enjoy adding VSI if the borrower claims insurance wasn't needed because he was gone and the car was on blocks, etc... But maintaining insurance is a condition of the loan, not an attempt at collection or imposing a fee of some sort to make up for any reduced interest rate.

You would have a similar issue if it was a mortgage. If there was flood coverage that lapsed, you'd have to force place that as well.
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