Thread Options
#804225 - 08/28/07 07:47 PM Freeze Accounts - Active Duty
ksm Offline
Gold Star
ksm
Joined: May 2003
Posts: 302
Midwest
We had a customer come in who is leaving for Boot Camp on Monday and said his recruiting officer told him he didn't have to make any loan payments since he was going into the military. We said we would lower his interest rate to 6% and recalculate the payment, but he said his accounts should be frozen. He is going to check with the recruiter and get back to us.

His recruiter also told him he should cancel all accounts, freeze all debit/credit cards etc for the four months that he will be at boot camp. Do other instituitons actually close accounts or do you just put alerts on the accounts?

Return to Top
Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#804292 - 08/28/07 08:34 PM Re: Freeze Accounts - Active Duty ksm
Baker Offline
Platinum Poster
Joined: Nov 2005
Posts: 772
Washington State
Is the person going to marine boot camp? If so this could be the reason why he is requesting the freeze. Looking through the posts earlier under this section there were a few that discussed Marine boot campers wanting to postpone their payments. I guess this is because while at bootcamp they have no outside contact and do not get paid until they are done with camp. I believe it also stated that their checks and cards are taken away. There is no part of the regulation that requires it but it sounded like the concensus was that it may not hurt to defer the payments since you will run into the obstacle of trying to collect on the loans and the stipulations regarding such activities.

Return to Top
#804300 - 08/28/07 08:39 PM Re: Freeze Accounts - Active Duty Baker
Baker Offline
Platinum Poster
Joined: Nov 2005
Posts: 772
Washington State
One more thing, you may want to check with your state law because some states may allow for deferral.

Return to Top
#805549 - 08/30/07 12:41 AM Re: Freeze Accounts - Active Duty Baker
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,354
On the Net
Correct. You have no federal requirement for this. State law may be more restrictive on you. And as I understand it the Marines don't get paid while in boot camp. Other services do. I assume that means the Navy does which would be odd since they pay the Marines.

Still, folks at home can handle one's affairs if this possible.
_________________________
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

Return to Top

Moderator:  Andy_Z