HOT TOPICS AND THE SERVICEMEMBERS CIVIL RELIEF ACT Pt. 2

By Susan H. Seabury, Managing Director and Senior Counsel, Mesirow Financial Consulting, LLC and David S. Margolis, Associate, Mesirow Financial Consulting, LLC.*
II.               The Six Percent Interest Rate Cap
One of the better known provisions of the SCRA allows a servicemember to reduce the interest on pre-service obligations to six percent when certain requirements are met. While this is one of the best known protections, and, seemingly, easiest to implement, there have been wide spread abuses by even sophisticated financial institutions.
A.                The Rule
1.                  Limitation on Interest
The limitation, found . . .

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