Has SCRA’s Written Request Provision Been Pushed Aside?
The Servicemembers Civil Relief Act got a lot of attention as a result of the $60 million settlement announced by the DOJ and the Department of Education. The DOJ alleged that a major student loan servicer failed to reduce the rate on loans to servicemembers to 6% when required to do so. However, the statute requires the servicemember to submit a written request for relief before relief is granted. The decision by the CFPB, DOJ and ED appears to ignore this requirement. [5/15]