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#1872308 - 11/18/13 11:21 PM Used auto as collateral
mtngrrl Offline
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mtngrrl
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Northern California
Something came up as a side note during BOL Triage a couple weeks ago, and I've been searching all around to find more information, without luck.

Someone mentioned that for small home improvement loans, they were no longer using real estate as collateral, but rather were making either unsecured loans, or taking an existing auto as collateral. The speaker (and I can't remember who), said something to the effect of: well, you need to be careful if you take an auto as collateral, because then you run into SCRA disclosure issues.

Of course I may have heard wrong...and I can't find any reference to SCRA issues when taking an auto as collateral. Can anyone shed some light for me?
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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1872310 - 11/18/13 11:43 PM Re: Used auto as collateral mtngrrl
mtngrrl Offline
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mtngrrl
Joined: Mar 2011
Posts: 499
Northern California
Found it:

§ 232.6 Mandatory loan disclosures.
(4) A statement that “Federal law provides important protections to regular or reserve members of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of 30 days or fewer, and their dependents. Members of the Armed Forces and their dependents may be able to obtain financial assistance from Army Emergency Relief, Navy and Marine Corps Relief Society, the Air Force Aid Society, or Coast Guard Mutual Aid. Members of the Armed Forces and their dependents may request free legal advice regarding an application for credit from a service legal assistance office or financial counseling from a consumer credit counselor.”
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#1874923 - 11/27/13 11:48 PM Re: Used auto as collateral mtngrrl
Andy_Z Offline
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That is actually the Military Lending Act or the John Warner National Defense Authorization Act or the Talent Amendment. The references are the same and tie to the SCRA as that is where the discussion often starts, but you're correct, it isn't really SCRA.
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