How to enforce SCRA rights for mortgage adjustments, refunds, and protection from lender actions.

Hello! My name is Dolan and thank you so much for contacting me! I just had a few quick questions for you: What kind of SCRA issue are you dealing with specifically?

Got it! In your final paperwork, did it say that it was going to be 6%? Anything with your signature on it that suggests this is the case? Did you save anything in writing from your lender about the 6% issue?

Got it! In your final paperwork, did it say that it was going to be 6%? Anything with your signature on it that suggests this is the case? Did you save anything in writing from your lender about the 6% issue? I sent this message earlier, but I know you were in the process of uploading docs.

Ok! Did you need to tell me anything else? If not, I can start with answering your question.

Ok! I've been working on an answer while we've been chatting, so it'll just be a moment.

I'm so sorry about this situation! I want to address your situation with a detailed response, so if you have any questions, don’t hesitate to ask because this law stuff can get complicated. First, I'm so sorry for any confusion. Because I'm not licensed in VA, and given the scope of this chat, I wouldn't be able to send letters on your behalf; however, I do have some suggestions as to what you can send or what you can direct a lawyer to send on your behalf.

So I recommend keeping it as straightforward as possible. You could state: 1. You entered active duty in [REDACTED], which qualifies your mortgage for significant protections under the Servicemembers Civil Relief Act . You can state that this “Federal law is designed to safeguard servicemembers from financial hardship during their military service.” Under the SCRA, your lender is legally obligated to reduce the interest rate on any pre-service financial obligations, including your mortgage, to no more than 6% per year. This cap includes not only the base interest rate but also all associated fees and charges. Additionally, the law requires that the interest rate reduction be applied retroactively to the start of your active duty and that any overcharges or excess interest payments be refunded promptly. It also mandates that monthly payment amounts be recalculated to reflect the lowered interest rate, ensuring accurate and fair billing moving forward. Failure to comply with these protections is a violation of the SCRA and undermines the financial security the law is meant to provide to servicemembers like you.

2. You can also explain that the lender REPEATEDLY assured you, both verbally and in writing, that the adjustments required under the Servicemembers Civil Relief Act would be implemented promptly and in full compliance with the law. However, despite these assurances, the interest rate cap mandated by the SCRA was not applied until [REDACTED] (nearly five months after you entered active duty.) Even then, the necessary recalculations of your monthly payments and the issuance of refunds for overcharges remain unaddressed. These significant delays violate the lender's commitments to you and constitute clear non-compliance with the SCRA's statutory requirements, which demand immediate and retroactive application of these protections. This failure to act in a timely manner undermines the purpose of the SCRA and has caused unnecessary financial strain and uncertainty for you as a service member.

3,. Also, I suggest explaining that the lender sent you the Notice in [REDACTED], even though they admitted they hadn’t fully complied with the Servicemembers Civil Relief Act. This kind of admission can be used against them in a court of law and you can suggest that tis action is contradictory and unfair, as they claim your mortgage is protected from foreclosure under the SCRA. At the same time, they’ve also stated that the SCRA doesn’t protect against negative credit reporting, which leaves you exposed to inaccurate credit damage. You can state that the Fair Credit Reporting Act requires that they provide accurate reporting and their inconsistent actions and failure to fully implement the required protections create confusion and undermine the very safeguards the SCRA is meant to provide.

4. You can state that Congress developed The Fair Credit Reporting Act to require credit reporting agencies to report only accurate information regarding consumers.  Because our credit reports help determine whether we can lease an apartment, buy a car, or purchase a home, the FCRA is there to help make sure that we’re judged only on accurate information and not falsities.   Under the FCRA, consumers can sue for: Statutory damages of $100 – $1000 per violation Actual damages for injury the consumer suffered Emotional damages for stress or physical ailments resulting from the ordeal Punitive damages to punish the violator for their actions

5. Finally, you can explain the significant financial hardship caused by the lender’s failure to implement the protections required under the SCRA in a timely manner. You can state that you made good-faith payments from [REDACTED] through [REDACTED], trusting that the necessary adjustments to your interest rate, monthly payments, and overpayment refunds would be completed as promised. However, the lender’s PRLONGED AND UNNECESSARY delays and failure to address these matters created an unsustainable financial burden, forcing you to withhold payments in [REDACTED] and [REDACTED]. You can tell them you will follow this path: 1. A complaint to the feds. A complaint with the FTC can be filed starting here - https://consumer.ftc.gov/media/video-0054-how-file-complaint-federal-trade-commission 2. A complaint to your local Congressperson; 3. A complaint to your local state senator; 4. You can file a complaint with the Consumer Financial Protection Bureau here - https://www.consumerfinance.gov/about-us/blog/so-how-do-i-submit-a-complaint/

I don’t have any contacts but try clicking here Also, try this link - https://www.lawyerlegion.com/lawyer-referral-directory Sometimes, the local law schools can provide free legal assistance, too. Yelp.com is a surprisingly good place to find lawyers. You can also find lawyer on the Legal Services Corporation website. The LSC is an independent non-profit organization authorized by Congress in 1974 to help people find legal aid services (https://www.lsc.gov/what-legal-aid/find-legal-aid). You can also return to this site and ask questions to me as you go through this process to keep your costs down. I know it’s a lot, but does that help make sense of things a bit more? I want to make sure I didn’t leave anything out.

Of course!