2 Thoughts on how do you get your interest rate lowered from a car loan after your spouse joins the military?
  1. Reply
    c b
    June 10, 2011 at 12:27 am

    Try this site. You get the relief for the period of Active service. However, the deferred interest may be applied to the end of the loan.

  2. Reply
    Tracey E
    June 10, 2011 at 1:09 am

    You are talking about the Servicemembers relief act and No, it doesn’t have to be lowered just because he joined the military.

    6% Interest Rate.
    If a service member’s military obligation has affected his/her ability to pay on financial obligations such as credit cards, loans, mortgages, etc., the service member can have his/her interest rate capped at 6% for the duration of the service member’s military obligation.

    Qualifying debts are debts that were incurred by the service member, or the servicemember and their spouse, jointly, before coming on active duty. Debts entered into after going on active duty are not so protected.

    Notice that this particular provision of the act only applies if a servicemember’s military service affects their ability to pay. However, the burden is on the creditor to seek relief in court if the creditor believes that the service member’s military career does not materially affect his/her ability to pay. The creditor must comply, unless he/she gets a court-order stating otherwise.

    In order for an obligation or liability of a servicemember to be subject to the interest rate limitation, the servicemember must provide to the creditor written notice and a copy of the military orders calling the servicemember to military service and any orders further extending military service, not later than 180 days after the date of the servicemember’s termination or release from military service.

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