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The SCRA and Requesting a Rate Reduction

I am on active duty and want to get the SCRA interest rate cap benefit for some of my debt. I have not had any trouble paying my debts while in the service, can I still get this rate reduction?

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Yes, but you have to keep in mind one limitation of the SCRA when it comes to the interest rate cap on outstanding debt. Title III, Section 527 (c) gives a court the discretion to limit the protections of the SCRA with regard to the interest rate cap if the court decides that your ability to pay is not materially affected by military service. If your service has not impacted your ability to pay, you may have to watch out for this provision.

Published on BankingQuestions.com 10/30/08