Is it true that a bank has to lower an active service member's bank loan rate to 6% while they are active duty?

ANSWER

The BIDaWIZ Team's Answer:

Yes, it is true that active military service members are protected from the interest rates on borrowing. Specifically, the Service-member Civil Relief Act (SCRA) limits the amount of interest that may be collected on debts of active military service-members to 6 percent per year during the period of military service. The expanded SCRA further states that no interest above 6 percent can accrue for credit obligations 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. Furthermore, the monthly payment must be reduced by the amount of interest saved during the covered period.