SCRA Protection – knowledge of deployment

Compliance > Lending > Service Members > SCRA
Q: If you know that a customer has been deployed and you contact the customer to ask him or her to get the required paperwork from the military and the customer fails to do so, do you have to lower the rate and reduce payments?
 
A:  Section 527 of the SCRA requires the service member to provide written notice and a copy of the orders calling the service member to active duty in order for a loan to be subject to the interest rate limitations.
 
 
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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