Answer:
by Dan Persfull:
Not IMO. It is a post active duty debt. The problem would be can your system properly monitor the account and correctly apply the interest rates, including any fees associated with the account.
Answer:
by Andy Zavoina:
The 6% limit applies to pre-service debt. The existing balance as of the date of coverage (likely the date s/he went on active duty) goes to 6%. Any subsequent charges, whether you increase the credit limit or not, are NOT subject to the 6%. That is post-service debt.
Many years ago our system did not have the capability of handling the balance distinctions and we simply offered 6% on the entire balance. Hopefully the systems have improved by now but you'll be the judge of that.
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