Consumed Lending Regs- Service Member Civil Relief Act Flashcards
What are 3 tests set up by the Act to determine if an individual will be protected?
Is the member in the military service of the US
Is the member on active duty
And is the member materially affected as a result of active duty status
What must a service member covered by SCRA do to receive reduced rates?
Provide written notice and a copy of military orders calling the service member to active duty and any orders further extending military service.
How many days after termination of active duty does a service member have to provide us their notice of active duty?
180 days
If the member and the credit Union agree to modify or renegotiate terms of the obligation does the member waive all rights to the provisions of the SCRA?
No they don’t waive all rights such as their right to have court proceedings delayed or vacated
Under the Act what is the interest rate limit for members on active duty service?
6% on loans taken prior to active duty
If the credit Union does not believe that the member qualifies for the interest rate reduction, what action can be taken?
The credit Union must prove in court that the service members ability to pay has not been materially affected by active duty
How does the SCRA treat lost interest?
Credit unions must forgive any interest in excess of 6% this includes service charges, renewal fees, any other charges besides bona fide insurance.
The credit Union must reduce the periodic payment amount by the amount of interest forgiven
Under the act what constitutes materially affected?
Member is unable to take full advantage of legal rights such as not able to appear in court
Unable to meet financial obligations as a result of active duty
At what point can the interest rate be raised to the original contract rate?
When the member is no longer on active duty
