Trinity, NC asked in Contracts, Banking and Military Law for North Carolina

Q: Drive Time and SCRA

My wife purchased a vehicle from Drive Time before I entered the military (active duty) and her intrest rate is extremly high. 25% or so. Back then she had a job where she could afford it, but now om the only one with an imcome. I reclently found out about SCRA (service member civil relief act) where they have to drop your intrest rate, but when I call Drive Times bank, Bridgecrest, they say they have know idea what that is and are usually very rude. What can I do about this situation? Im tired of paying $500 a month for a 2008 vehicle.

1 Lawyer Answer
Robert Donald Gifford II
Robert Donald Gifford II
  • Military Law Lawyer
  • Oklahoma City, OK

A: You need to put it in writing. Here is some suggested language:

Dear Sir or Ma’am:

Pursuant to the Servicemembers’ Civil Relief Act (“SCRA”) 50 U.S.C. App. Section 527,

this letter is my formal written request to reduce the rate of interest to six percent (6.0%) for the

above referenced account.

I am currently serving on active duty with the Branch of Armed Forces. I entered active

duty on Date, which was after after the time I incurred the above referenced debt. The SCRA

establishes a six percent (6.0%) per annum ceiling on interest during the period of a

servicemember’s military service. This reduced rate became effective upon my entry to active

duty on Date, and shall be applied retroactively to date of entry to active duty.

Under the SCRA, any interest in excess of 6.0% per year shall be forgiven. Additionally,

any payments shall be reduced by the amount of interest forgiven which is allocable to the

period of such payment.

Please find the copy of My Orders to Active Duty.

If you have any questions or concerns, you may contact me at the above address, or my

commanding officer’s address on the attached letter.

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