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#2127069 - 04/19/17 06:52 PM SCRA effective date for rate for a new Reserve
totallyconfused Offline
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While auditing SCRA I found a loan for a reserve where I am unsure what date should have been used to change the rate to be 6%. Normally we use the date the reserve received their orders but in this case the reserve was new. They had just joined and started basic training in December. We do not have orders for them to enter basic training. And I am not sure if they get actual orders to go to basic training. We used the start date of the basic training since the only other document we received from the customer was the contract they signed at MEPs in July.

So I think I have 2 questions.
1. Should there have orders that the customer received?
2. If not, was the bank right to use the start date of basic training as the effective date of the rate change?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2127623 - 04/24/17 01:43 PM Re: SCRA effective date for rate for a new Reserve totallyconfused
Jade'sFire Offline
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I would take a conservative approach and use the date of enlistment. In my opinion, using the date they started basic would not be providing them their full protection.
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#2128038 - 04/26/17 04:00 PM Re: SCRA effective date for rate for a new Reserve totallyconfused
Andy_Z Offline
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First, they should have orders. While I've been out a very long time, orders are needed to do most things like this.

Second, you are already conservative. SCRA protections require a written request and a copy of the orders. That is the law. Now a common practice is to use the SCRA DMDC database. Have you looked up the borrower there, and what did that tell you? I'm not sure if it has the active duty date or not, but it certainly tells you if the person is covered.

Third, it is possible the borrower reported for duty days before starting basic, but the actual enlistment date could be way off, depending on how you define it. Delayed entry could be months prior to active duty. I'm not sure which of those would be called an enlistment date, or how that ties to a reservist, assuming this is a reservist who has enlisted but will not be full time after training. Again, the orders would help. The orders define how they are called to duty and whether or not the SCRA applies at all.
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