SCRA help

Posted By: MarieR

SCRA help - 01/25/08 07:33 PM

In looking at old threads and my limited knowledge, I could use some help. We have a customer that is in the National Guard and has a loan. I am still waiting for the activation papers, but I think he got the loan after he received his activation orders. Are we required to reduce his rate and payment on this loan? Thanks for your insights.
Posted By: MikeD

Re: SCRA help - 01/27/08 09:20 PM

I've been dealing with that a lot. I haven't seen a clear answer. They can invoke their rights the day they get their orders (Section 106a), but then want to say they're not yet on active duty in this situation (gets orders, then gets loan, then reports for active duty).

I've been erring to the conservative (soldier's) side, letting them have the rate. I figure otherwise I'd have to let a judge decide and we're not going to look like the good guys then either. To me, this is similar to the guy who intends to enlist, the recruiter even tells him to go get a car or whatever, and never mind the rate because it will be 6% after he signs the enlistment papers. I've had that several times. I suppose the solution is more political than interpretational.
Posted By: Andy_Z

Re: SCRA help - 01/30/08 01:36 AM

It can depend on under what Section they're called to active duty. Reservists ordered up get some extra protections under Section 106. Their protections begin on the date they RECEIVE their orders as those protections relate to the general relief and protections against rent and lease agreements as well as some contract and mortgage issues all covered under Title II and III of the SCRA.

Member of the National Guard called up to active duty for more than 30 consecutive days under Title 32 USC are covered. They used to be covered under only Title 10, but not they're covered under both.

When you get their orders, I believe the Title should be identified.