Scra Flashcards
The term service member refers to
Person on active duty in the federal military service
On active duty of an allied nation
When is a dependent of a service member covered under scra
When the service member provided 1/2 of their support during the 189 days preceding a request for relief
Can service members waive their rights to the act
Yes
If service member waived their right, when must they do it
While they are on active duty or after they receive orders to active duty
The waiver must be in writing if it pertains to any type of lease modification or repossession/foreclosure
does the 6 percent maximum interest rate apply to dependents
No,unless the obligation is incurred jointly by the service member and the service member spouse
What benefits are service members entitled to
Contracts for purchase of property, mortgages,repositions, assignment of life insurance policies
What must service member provide to receive interest rate relief
Written notice and copy of orders
Where the person in military service is a co defendant with others not in the military what can creditors do
With court permission, proceed against other co defendants
Termination of leases is covered when
The service member enters military service during the lease term
The lease is in the military when the lease is signed but the receives orders for change of station or deployment for 90 days or more
Leases for motor vehicles are impacted when
The lease has orders for 180 days or more or
Has orders less than 180 days then receives orders for 180 days or more
True or false. No default judgement may be entered against a person in military service without a court approving such judgment and without an attorney representing the person in military service
True
Can fined and penalty’s accrue when an action with a contract is stayed
no
If a service member fails to perform a contractual obligation and incurs a fine or penalty what can a court do
Reduce or waive the penalty
If a person receives a deposit or installment to lease a property from someone and then they are called into service, can that person terminate the contract
no
Foreclosures of mortgages originating before the debtors military service may be conducted
During the debtors term of military service and for one year discharge from active duty by order of the court
If the court stays a proceeding to foreclosure or terminate a mortgage the court may do what to appraise the property
Appoint three independent people to appraise it and require that the sum be paid to the person in the military
The lease may terminate the lease at the leases option at any time after
Leases enters military service or
Lease receives orders to be deployed 90 or more days
How must a lease be terminated
In writing with a copy of military orders
How soon must a car be returned after the cancellation notice
15 days
Are federal student loans covered by SCRA
Yes
Life insurance policies purchase before military service may not lapse for how long
Term of military service or Two years following the term of military service for failure to pay premium
Can things in storage be sold while on military service
No. Not for 90 days after they return
What does SCRA cover
Lease agreements
Lawsuits
loan obligations
Insurance contracts
What classified as a service member dependent
Spouse
Child
And any individual dependent for which the service member provided at least one half of their support during 180 days preceding the request for relief
What must be sent to a service member when a mortgage is 45 days delinquent
SCRA notice explaining foreclosure rights
Must be sent to service members who pledged their primary residence as collateral
MIlitary lending act imposed what
36% interest rate cap on consumer purpose transactions
What type of loans does the military lending act exclude
Residential mortgages
Purchase money transactions for personal property (I.e. car loans)
Business purpose loans
Does the military lending act have to comply with state interest rate caps
Yes
Are the standard reg z disclosures given with loans that fall under the MLA act
Yes
What does the MLA act require a borrower to do
Perform a covered borrower check to determine if borrower is entitled to MLA protections
A borrower can be provided a safe habit if the creditor checks the following for covered borrowers
MLA database
A Consumer Report
Does a creditor have to maintain records from a safe habor check
Yes
How long is a safe habor check good for
When consumer initiates transaction
Consumer applies to establish an account
If the consumer responds to an offer within 60 days of intitial search
Under MLA, lenders cannot do what to borrowers
Impose prepayment fees
Make them waive right to legal counsel
Require arbitration
Demand unreasonable notice
Condition the credit in establishing an allotment to repay
What does SCRA require the borrower to do in order to get benefits
Self identify
Request it in writing
Send copy of orders
What do creditors need to double check when foreclosing or repossessioning loans
Have a process in place to identify military personnel
The MLA applies to new consumer credit entered into on or
Iafter 10/3/16 or 10/3/17 for credit cards while on active duty
What type of loans does SCRA cover
Residential mortgages
Business loans, if the borrower is an individual or sole proprietor
What responsibility does MLA place on the lender
Identifying active duty status in order to deliver special MLA disclosure and the MAPR calculation
How many installments is necessary to be covered under MLA
4 or more
What does the MAPR calculation include
Finance charges
Application fees
Participation fees
Credit insurance premiums
Fees for debt collection
