soldiers and sailors act and apr?

Question

my soon to be hubby is deploying soon, and we thought the ss act stated somewhere that precentage rates had to be dropped when a soilder deployed? We were told since he used the MILES program to purchase his car, that the ss act was invalid, and he may have to refinace with a local bank to lower his apr. Is this right, or how do we fix this?

Answer 1

The Servicemens' Civil Relief Act has, as one of its general provisions, the authority to reduce interest rates on loans acquired prior to military duty if the military member can prove he/she is earning less as the result of military service. However, in the case of a vehicle that is purchased through the MILES program, the SCRA doesn't apply since you must be on active duty to be approved for a loan under the MILES program, and again, the SCRA only applies to debts that were acquired BEFORE the servicemember came on active duty. So your best bet to lower your APR would be to try to refinance with your bank or credit union.

Answer 2

Basically it states that service members on active duty can apply to creditors to have interest rates on pre-service debts reduced to a fixed rate of 6 %. One piece of advice -- service members must be able to claim in good faith that military service has materially affected their ability to pay the debt. THIS IS THE KEY: if a creditor can demonstrate that a service member’s military income is greater than their pre-service income, the 6% interest cap would not apply. The 6% interest rate also does not apply to any debt incurred after the member began active duty, nor does the SSCRA apply to federally guaranteed student loans. FOR CREDIT CARDS a creditor has never questioned the SSRA. They have always dropped my % with a copy of orders and a letter.

Answer 3

the interest reduction only applies to Guard and reserves who are activated. it does NOT have to be granted for Active Duty Personell, and it is NOT required to be given in cases of debt acquired AFTER enlisting.

additionally, if deployment does NOT present a financial hardship( and for AD personnel, they actually bring home MORE money then when not deployed) the bank that holds the loan is not obligated to drop the interest.