Legal Question in Credit and Debt Law in Georgia

Re: Soldiers and Sailors Act

Besides going to Congress, certain media outlets, which are more helpful to the Military Personnel, as well as, JAG, might be helpful. JAG should be able to lend some assistance because the Service Member's Civil Relief Act (SCRA)(used to be called Soldiers' & Sailors' Civil Relief Act of 1940) is a Federal law. You didn't say whether your husband is a reservist, National Guard, or full-time active duty? One of the conditions is that the Military personnel took out the loan during a time when he/she was not on any form of active duty in any branch of the Military. In this sense, your husband or another person could use the statute if he/she was on Guard Duty only or was a reservist when the loan was obtained then was activated afterwards. I would speak to JAG first; most civilian lawyers have no understanding of the Military terminology, etc.; and some of the conditions to make the law applicable are very technical and are based on the Military information of the individual. Your husband may qualify, but I will need more information. You can contact me or any attorney who is familiar with the Military, who has worked for JAG, or JAG for a free consultation; a good number of attorneys have free consultation. The law doesn't just apply to credit card balances; it applies to taxes, installment contracts (such as vehicle loans, etc.), mortgages, liens, etc. The current law clarifies and restates the existing statute that limits to 6 percent interest on credit obligations incurred prior to Military service or activation, including credit card debt, for active duty service members. SCRA unambiguously states that no interest above 6 percent can accrue for credit obligations (that were established prior to active duty or activation) while on active duty, nor can that excess interest become due once the service member leaves active duty; instead that portion above 6 percent is permanently forgiven. In addition, the monthly payment must be reduced by the amount of interest saved during the covered period.

The seller or contract holder is not allowed to exercise any right or option under the contract, to rescind or terminate the contract, to resume possession of the property for non-payment of any installment due, or to breach the terms of the contract, unless authorized by the court. Even if there is court action, so long as the conditions of the law apply to your situtation, court proceedings cannot be pursued against the Service Member either during the covered time period!

In responding to your question in this matter, the Firm is not expressing an opinion on whether you will ultimately prevail if legal action is pursued. You should not refrain from seeking legal assistance from another firm if you desire another opinion. Because time is always important, and could be critically short in your case, you may wish to seek another opinion as soon as possible.

Re: Soldiers and Sailors Act

Contact your representatives. However, while one might like to have such a limit apply across the board, the limit obviously makes sense to prevent abuse of the card and to not force the card issuer to cancel the card. You also need to understand that having a credit card is not a legal right. If the lower rate is forced on card issuers, they will simply cancel cards. It is not a "loop hole." The best thing all card holders, military or not, is to use cards wisely.