Under the Servicemembers Civil Relief Act (SCRA), what is the maximum interest rate that can be charged on a servicemember's pre-service debt obligations?
Correct Answer
B) 6%
Under SCRA Section 207, the interest rate on pre-service debt obligations (including mortgages) is capped at 6% per annum during the period of military service. This reduction applies to both the principal and interest.
Why This Is the Correct Answer
Under SCRA Section 207, the interest rate on pre-service debt obligations (including mortgages) is capped at 6% per annum during the period of military service. This reduction applies to both the principal and interest.
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