SCRA Protection – delayed notice of active duty

Compliance > Lending > Service Members > SCRA
Q:  If a service member does not notify a financial institution of active duty until several months after he or she receives orders from the military, does this institution need to go back to the original date of the orders, or make the maximum 6 percent effective as of the date it receives notification?
 
A:  The reduction in the interest rate and the adjustment of the periodic payments under section 527 of the Servicemembers Civil Relief Act (SCRA) should be effective as of the date on which the service member is called to active duty. The service member has up to 180 days after the date of his or her release from military service to provide this notification.
 
 
ADDITIONAL INFORMATION – This Q&A was released by the Federal Reserve Board, in follow up to their Servicemember Financial Protection Webinar that was presented on September 10, 2012 - https://www.consumercomplianceoutlook.org/2013/first-quarter/servicemember-financial-protection-webinar/
 

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