Concerning the SCRA maximum interest rate of 6%, I was wondering if a credit lender can deny an SCRA request because of a zero balance on the date of entrance into active duty status. For example, a credit cardaccount was opened in 2005, paid back in full right before entrance into active duty in 2008, and now has a balance, or if I must abide by the SCRA, because it was a line of credit that was opened prior to active duty.
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The credit card balance as of entry into the service was zero; therefore, there was no interest. Subsequent charges to that credit line are not subject to the SCRA rate because that debt was incurred after joining the military. The 6% rate applies to the debt based on when it was made, not the entire credit line that is available.
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The credit card balance as of entry into the service was zero; therefore, there was no interest. Subsequent charges to that credit line are not subject to the SCRA rate because that debt was incurred after joining the military. The 6% rate applies to the debt based on when it was made, not the entire credit line that is available.
