We have a borrower that received a credit card from us in 2007. Borrower subsequently enlisted in the regular armed forces in 2011, however we were not advised of the enlistment until this month. The borrower is still enlisted.

Question: 1) Would the interest rate reduction to 6% only cover the outstanding debt at the time of enlistment in 2011, and not the debt that has been accrued since the enlistment date? 2) Would the borrower be covered by the other SCRA protections (bankruptcy, foreclosure, etc.)?

Thanks

1) Yes. The balance at the time is subject to the 6% rule. Subsequent charges are post-enlistment and not protected.

2) They can be. In the SCRA some protections apply only to pre-service debt while others apply to post-service debt as well. That requires a section by section analysis.

Thanks. That's what I thought, but needed a second opinion.