I just had a customer call me in regards to the Soldier and Sailor Relief Act. He signed the papers for a car loan after he enlisted in the Army but before he left for basic training. Would he still qualify for a maximum loan rate of 6.00%? When are they considered to be "Active Duty"? As soon as they sign the papers or after boot camp and training?

It sounds to me like the soldier entered under the delayed entry program. I did the same thing (years ago). I was not officialy on active duty until I raised my right hand,swore the oath, and then boarded the bus to boot camp. I served for four years and my active duty began on that day. Anything I did before that was not considered on military time.

I don't believe this person is on active duty until they begin boot camp. Hence, they would qualify for relief under SSCRA.

The customer has orders calling him/her to active duty. That will be before boot camp, but likely not much before. Ask for a copy of the orders.

What did they have on their app as to employment? If they were active, but haven't reported to duty, the fine line says SSCRA will not apply. If they borrowed on day X and go active after that, SSCRA will apply.

While I would be upset if they borrowed, quit their job and then enlisted, just to get the lower rate, there wouldn't be anything you could really do about it. Dumb way to get a lower rate, IMHO. My concern would be that my collateral may soon be leaving my area and going who knows where, and that the first payment may be due before he/she gets a check.

You might also ask the customer to establish an allotment for their payment. That will better assure you of timely payments.

The customer stated on the application that he was "Active Duty" army. He was leaving within a couple of weeks. That is what is reflected on the application. He has since completed basic training. Then he would not be eligible for the 6.00% loan? Correct?

I think SSCRA would apply. He was a civilian when he finalized the loan. If you get a copy of his orders, you will be able to see when he was ordered to Active Duty.

-Kevin

If he stated employment was active duty army and the loan was based on his military pay. Then I don't think SSRA applies.

If he had not been sworn in yet, then he was not in the Army, and the employment stated on the application was incorrect. Sounds like the loan office needs some training. SSRA will apply in this scenario

I agree w/ KS. Get some proof. I can't imagine the services saying "you are on active duty, show up in a couple of weeks". But, stranger things have happened.

Has the customer requested coverage under SSCRA?

Did you verify employment at app?

Do you have a military pay stub?

Tell them they showed active duty when they borrowed and they are not eligible under SSCRA, but you'd be happy to reevaluate the situation with a copy of the orders placing them on active duty. Be sure you don't get orders for a PCS (relocation).

Currently we do not know the loan date or active duty date and there are discrepancies. Active duty should be shown just a few days before boot camp, based on my experiences.