Soldier Sues Bank Over Loan Rate
Utah Soldier Wanted Lower Rate
Last year Sgt. 1st Class Daniel Nehring was deployed to Iraq. Shortly after his departure, Nehring’s wife submitted a request to US Bank for an interest rate reduction for their auto loan, under the Servicemembers Civil Relief Act. The Nehrings had been paying on their ’03 Ford Expedition for 3 years and their rate was 10.14 percent. The bank repeatedly denied the request and now they are facing a law suit. Sgt. Nehring has since returned from Iraq and US Bank has admitted their mistake, stating that the information they obtained from the Department of Defense was inaccurate. US Bank has offered to lower the rate retroactively and will credit the account accordingly, but the Nehrings say its too late and they want to go forward with the suit for all of the other servicemembers out their dealing with the same problem.
Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act was signed into law in December of 2003. The Act replaces and updates the Soldiers and Sailors Civil Relief act of 1940. The basis of the Act is to protect the men and women serving in the military while they are deployed. It includes provisions to avoid default judgments in civil cases, stave of repossession of overdue accounts, and a number of other things. The section that the Nehrings were trying to use is 527, which limits interest rates for debts incurred before military service to 6 percent.
Understanding Your Options
If you are a servicemember or spouse of one, it is important to know what options the law gives you. This can help you in your financial planning and relieve some stress of being deployed or having your spouse deployed. The Servicemember Civil Relief Act can also apply to bankruptcy in some situations. If you have been contemplating bankruptcy in Utah then call us at Salcido Law Firm. We’ll make sure you are taken care of and that you understand all of your options.