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#68326 - 03/19/03 04:05 PM Soldiers' and Sailors' Civil Relief Act
Anonymous
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A question has been raised as to whether or not a bank may assess a late charge on a SSCA qualified installment contract where the interest rate has been reduced to 6%. Can anyone help?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#68327 - 03/19/03 04:13 PM Re: Soldiers' and Sailors' Civil Relief Act
Gotwood Offline
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No, you can't assess a late fee if the interest rate has been reduced to 6%.

Interest according to section 526 of the Act includes service charges, renewal charges, FEES, or any other charges (except bona fide insurance)


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#68328 - 03/19/03 06:58 PM Re: Soldiers' and Sailors' Civil Relief Act
Anonymous
Unregistered

Dean, thank you for your response. Another question has arisen pertaining to SSCRA with reservists called up to active duty and I wondering if you or someone else can answer it. Are banks prohibited from reporting past due or any other type of derogatory information to a credit reporting agency on a SSCRA qualified loan during the time they are on active duty?

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#68329 - 03/19/03 07:16 PM Re: Soldiers' and Sailors' Civil Relief Act
Andy_Z Offline
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Andy_Z
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Look to this thread and a few posts down. I added my interpretation on it, but I am not a lawyer, just my read on it.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
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Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#68330 - 03/19/03 07:34 PM Re: Soldiers' and Sailors' Civil Relief Act
Gotwood Offline
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Joined: May 2001
Posts: 715
No, banks are not prohibited from reporting their experience with a customers debt. What they can not do is create an adverse report relating to the creditworthiness of such person simply because they have exercised their rights under SSCRA. See Section 518 - Exercise of rights under Act not to affect certain future financial transactions .


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#68331 - 03/19/03 07:36 PM Re: Soldiers' and Sailors' Civil Relief Act
Anonymous
Unregistered

Andy, I tried to read your thread but there appears to be an issue in looking up the post in the database. I wuld appreciate it if you could re-post it. Thanking you in advance.

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#68332 - 03/20/03 05:08 AM Re: Soldiers' and Sailors' Civil Relief Act
Andy_Z Offline
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Try again.

Anon asked this:Sec. 518. Exercise of rights under Act not to affect certain future financial transactions

Statute
Application by a person in military service for, or receipt by a person in military service of, a stay, postponement, or suspension pursuant to the provisions of this Act (sections 501 to 593 of this Appendix) in the payment of any tax, fine, penalty, insurance premium, or other civil obligation or liability of that person shall not itself (without regard to other considerations) provide the basis for any of the following:

(1) A determination by any lender or other person that such person in military service is unable to pay such civil obligation or liability in accordance with its terms.

(2) With respect to a credit transaction between a creditor and such person in military service -

(A) a denial or revocation of credit by the creditor;
(B) a change by the creditor in the terms of an existing credit arrangement; or
(C) a refusal by the creditor to grant credit to such person in substantially the amount or on substantially the terms requested.

(3) An adverse report relating to the creditworthiness of such person in military service by or to any person or entity engaged in the practice of assembling or evaluating consumer credit information.

(4) A refusal by an insurer to insure such person.

Wouldn't (3) prohibit the bank from reporting the delinqency to the credit bureau? The bank would like to just send a letter asking for proof of continued service and if they do not hear back, then continue to pursue collection.


And I replied:I don't think so, based on this read:

Application by a person in military service for...a stay, postponement, or suspension ...in the payment of any ...civil obligation or liability of that person shall not itself (without regard to other considerations) provide the basis for any of the following:

...(3) An adverse report relating to the creditworthiness of such person in military service by or to any person or entity engaged in the practice of assembling or evaluating consumer credit information.

It is not reported because they applied for relief, but because they are past due on the modified terms.

Look at point 4: A refusal by an insurer to insure such person. Obviously some insurers are not going to insure everyone or under all conditions.

I am not an attorney. If there is an official interpretation different than this, please let me know.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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