Decreased credit card interest rates while deployed or on Active Duty?

Question

I know that the SCRA says that credit card companies cannot charge more than 6% interest for debt incurred BEFORE active duty service.

Are there any laws or such that help or require your interest rate to be dropped while deployed or on Active Duty?

Also, my credit card company has been charging me for a Credit Holder Security Plan which I have called to cancel many times, and still each month it shows up on my statement, does anyone know what I can do about that?

Answer 1

I dont know of any laws requiring them to be dropped, however, most companies do have provisions for this. Some will put your card "on hold", so you cannot use it, but you don't get charged interest either. You need to contact each co. individually.
As for the other issue, with your next bill send them a letter stating the issue, and what you want to be amended.
If that doesn't work, tell them you want it removed and credited immediately, or you will contact the FTC regarding unfair business practices, what they are doing is actually a form of fraud. You cannot, be charged for something you did not purchase.

Answer 2

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RE :Decreased credit card interest rates while deployed or on Active Duty?
I know that the SCRA says that credit card companies cannot charge more than 6% interest for debt incurred BEFORE active duty service.

Are there any laws or such that help or require your interest rate to be dropped while deployed or on Active Duty?

Also, my credit card company has been charging me for a Credit Holder Security Plan which I have called to cancel many times, and still each month it shows up on my statement, does anyone know what I can do about that?
Follow 9 answers

Answer 3

Write the company a letter cancelling the credit holder security plan.


If you are regular active duty - then no. That only exists in order to help those that made more money in the civilian sector that were called into active duty...at least that was my understanding.

The person who mentioned USAA - they are right. I also have not found a auto insurance company with better rates in 9 years.

Answer 4

there is no provision to adjust the interest on anything accrrued after entering Active Duty. The only way is to stop using credit irresponsibly.

Reservists and Guard may freeze their accounts or lower the interest while called up for more than 30 days, but AD on a regular deployment cannot.

Answer 5

I don't know much about decreasing credit card interest while deployed or on AD. When I was gone at BCT/AIT training, I called up my credit card company before I left and they said they won't charge me while I'm gone. Just as long that I fax them a copy of my orders. And I wasn't charged a penny or added interest.

Answer 6

It depends on the credit card company. some will lower the interest rates while deployed. We have a USAA credit card EVERYTIME my husband deploys (for any length of time) they drop the interest rate to 4%.

Answer 7

I would suggest calling your credit card companies and/or sending a letter and asking them to lower the interest rate. They may or may not but it is worth a shot.

Answer 8

active duty gets better interest rates because they have a more reliable income. and if you don't have usaa as your bank then you need to recognize and everyone down your gene line gets usaa too

Answer 9

Look into the soldier and sailors relief act, that should give you all the information you need. I don't have a website, but google it, you'll find it.

Answer 10

interest should be outlawed period