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#1706794 - 06/05/12 05:26 PM SCRA- Loan Application
J2C Offline
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If a consumer make a loan application to our bank for an auto loan and indicates on the application that the primary employer is the US ARMY, does that count as notification that the individual is active duty? If so, should we have then requested the active duty paper work at that point or is it up to the borrower to make the request for the reduction at that point?
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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1706838 - 06/05/12 06:05 PM Re: SCRA- Loan Application J2C
Dan Persfull Online
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You do not have to be military to work for the ARM Services. We have many civilians working for the Navy at the Naval Surface Warfare Center Crane Division.

Also if they are active duty at the time the loan is made they are not entitled to the rate reduction under the SCRA.
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#1706866 - 06/05/12 06:29 PM Re: SCRA- Loan Application J2C
J2C Offline
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Thank you, Dan.

Another question.. if the customer was in fact employed by the US Military (but not active) and then made active duty, we would then need to comply with SCRA, when the request is made and active duty status confirmed, correct?

We haven't run into this in the past and we want to be sure we are intrepreting the regulations and our procedures, correctly.
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#1706895 - 06/05/12 06:45 PM Re: SCRA- Loan Application J2C
Dan Persfull Online
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Dan Persfull
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Is this person a civilian working for the ARMY or are they military personnel?

If they are military personnel then they are active duty.

If they are civilian personnel that may later be called to active duty as a reservist or guardsman then they would become eligible for the rate reduction at the time they are called.

Keep in mind active duty does not mean the serviceman has to be deployed to a combat zone or an overseas duty station. They are active duty whether they are assigned to a local recruiting office or a guard post on the North/South Korean border.
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#1707001 - 06/05/12 08:34 PM Re: SCRA- Loan Application Dan Persfull
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Thank you, again, Dan. smile

When he applied for the loan and received the loan he was employed by the National Guard. We just received ther request for the rate reduction in writing, today (after my last post)and a copy of the customer's orders for active duty showing that he was put on active duty 1/28/2012. I confirmed this thru the DoD website.

I was bumping heads with some of the lending folks here on when the person is considered "active". They thought that being in the military/national guard meant they were active duty and he didn't qualify for the reduction at this time. I think it is now resolved.
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#1708246 - 06/07/12 09:19 PM Re: SCRA- Loan Application J2C
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Did you come to teh conclusion that being employed by the NG was not active duty?
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#1711353 - 06/18/12 05:26 PM Re: SCRA- Loan Application J2C
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Yes. And, the POA provided the active duty paper work that showed the date it was effective. Glad that one crossed my desk or we would be in SCRA (you know what) right now.
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