Overcharging Military Personnel on Loans Investigated by Henrichsen Siegel, PLLC Law Firm

It has been reported by news outlets that federal regulators plan to accuse Sallie Mae, the giant student lending corporation, of charging military personnel excessive interest on student loans, and the government is looking into similar allegations against other lenders.

The Servicemembers Civil Relief Act (“SCRA”) provides legal rights and protections to military personnel and veterans.  For example, the law caps interest on loans to military personnel at 6 percent, along with providing protections against default judgments and garnishments.  Compliance with the 6 percent limit is mandatory, and it has been reported that certain lending institutions have violated the SCRA.  In fact, under the law, if a person borrows money at a higher rate and then enters the military and requests a lower rate, the lender must reduce the rate to 6 percent, and forgive any interest above that level.

The law provides a remedy of actual damages and that the violating party must pay your attorneys’ fees when violations are proven to level the playing field between you and the offending company.  If you feel you have been a victim of a violation of the Servicemembers Civil Relief Act, contact the law firm of Henrichsen Siegel, P.L.L.C. to find out your legal rights. With experienced lawyers in Florida, Georgia, the District of Columbia and other jurisdictions, we are here to assist you with protecting your rights.