SCRA Interest Rate Reduction

Back in December 2022, the CFPB issued a report titled, “Protecting Those Who Protect Us”. The main premise of the report was that protections under the Servicemember Civil Relief Act (SCRA) are being underutilized. Specifically, the report focuses on the interest rate reduction benefit for debts incurred prior to active-duty service. Under the SCRA, the interest rate on debts incurred before a servicemember’s active-duty status cannot exceed 6% during active duty and, in some cases beyond. For mortgages and similar debts, the 6% limit extends for one year after active duty. At that time the report was issued, the CFPB estimated that, between 2007 and 2018, servicemembers lost around $100 million because interest rates were not reduced as required. This is still a good reminder today!

We encourage you to check out the report as it offers some potential ways to increase compliance with these required SCRA protections.

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Published
2024/03/15

 

 
Amy Kudlacek

Amy Kudlacek

Amy brings many years of banking and compliance experience to Banker’s Compliance Consulting. She has worked for both large and small financial institutions and spent time working in every area of a bank. She started out as a teller in college and eventually became a branch manager. Her love, however, was always compliance. Amy began her career with Banker’s Compliance Consulting in 2000. Her knowledge and experiences have allowed her to develop a well-rounded and practical approach to regulatory compliance. Amy is CRCM certified, has a Bachelors Degree in Business Administration and is a graduate of the ABA Compliance School. Amy & her husband have two children at home and stay busy following their activities. They spend a lot of time in the bleachers!

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