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#279992 - 11/24/04 08:22 PM Deferred payments under SCRA
BY THE RULES Offline
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Joined: Jun 2004
Posts: 86
NC
If a customer has a cash reserve account and subsequently joins the military, he/she is eligible for SCRA benefits.
We have a customer who has recently entered the military and has provided a letter stating that he is currently undergoing training at Marine Corps Recruit Depot, Parris Island. He's stating that he will have "no pay until January 24, 2005 and will be unable to make his payments until that time". He is requesting that we suspend his payments "until his financial circumstances improve".
I want to ensure that we handle appropriately. It appears that he won't have a pmt due until December so we'd only be looking at deferring one (possibly 2) payments. So, we need to ensure that we defer the payments w/out charge..right? Should we also go ahead and reduce the interest rate even though he didn't request it?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#279993 - 11/24/04 09:58 PM Re: Deferred payments under SCRA
Andy_Z Offline
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To invoke the 6% rate the servicemember (or representative) must provide a written notice and a copy of their orders. You could certainly do it now if you wanted. The orders however, provide a termination date. This is good for your tickler file.

From what I have heard on a Marine recruits pay, this gap would be correct. Extensions would be of assistance. Requesting the orders as you arrange this would resolve several issues.
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#279994 - 11/24/04 09:59 PM Re: Deferred payments under SCRA
Don_Narup Offline

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Joined: Jul 2001
Posts: 3,708
Las Vegas Nevada
You have been notifed and should reduce the interest rate on what he owes at the time he entered sevice. Someone will correct me if I'm wrong but its my understanding that subsequest draws on the credit line after he entered do not have to be reduced.

What ever you do make sure you write him that you expect payment upon his graduation.

Marines are not paid durning Boot Camp and your borrower no longer has anything of his civilian life with him including a check book. He will get his pay when he graduates and with that lump of cash should pay the line current at that time.
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#279995 - 11/26/04 05:10 PM Re: Deferred payments under SCRA
BY THE RULES Offline
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Joined: Jun 2004
Posts: 86
NC
Thank you both!!

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