I have received correspondence from a customer who has been called to active duty and wishes to seek relief under the Soldiers & Sailors Civil Relief Act. In his letter to the bank, he states he wishes to terminite his loan contract. Everything I have read only indicates we must lower the rate of interest if it is above 6%. I have seen nothing about allowing him to terminate his contract. How should I respond to him? Also, he is a co-maker on the loan. The other party is not in the military & is not his spouse. Do we still have to grant the relief?

The SSCRA says he may terminate his contract with you if BOTH parties agree (Section 517). Otherwise, he/she remains obligated. As for the co-maker loan, if he is personally obligated, then he may request relief. Whether or not the other party is his spouse is irrelevent.

Relief under the SSCRA spreads similar to one in a bankruptcy. I haven't re-read the Act for this, but I believe the 6% relief provision will apply to the loan because an obligor is covered under the Act.

You can request a copy of the person's orders so that you can be sure to go back to that person's date of activation.

No, the contract isn't terminated as in you lose the loan, rather the 6% rate (which includes late fees) goes into effect as of that person's date of active duty.