Know Your SCRA Rights
Recently, Sallie Mae (the largest servicer of federal and private student loans) was ordered to pay almost $100 million in restitution and penalties for violating the rights of service members. The Servicemembers Civil Relief Act (SCRA) allows service members with student loans, mortgages, credit cards and certain other credit products that were incurred prior to service, to have the interest rate capped at 6 percent when they are called up on active duty. Sallie Mae was found to have been non-compliant in providing the cap to service members with student loans who requested the interest rate cap upon activation.
The Consumer Financial Protection Bureau (CFPB) has been working with the Department of Defense to educate service members about their rights and the Department of Justice has been working to enforce SCRA against creditors that interfere with its protections. Service members who run into obstacles getting their interest rates capped when called up to active duty can call the CFPB complaint line to report the issue at 1.855.729.CFPB or visit them online.
To find out more about your protections under the SCRA, visit CFPB.
Until military families are relieved of the weight of war, we hope you will continue to contribute to their wellbeing.
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