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So I've asked this question to a few of the guys in my unit, but I've gotten mixed answers. And my searches online have also been somewhat murky, so I thought I'd try and get some input here.
When I joined the Army, I wrote a letter to my credit card company asking them for a reduction in interest under the Servicemen's Civil Relief Act - which limits the maximum amount of interest you pay on any credit card (or any other kind of debt) that you incurred before you joined the military. I had a $10,000 debt on a Citibank card - mostly tuition expenses from college.
Citi lowered the interest rate to 0% for one year. During that year, I took a chunk out of the balance, but still have about $6,000 left. My year was up, and the interest came back. All well and good.
However, I'll be deploying to Afghanistan here in a few months, and I should have my orders within a few weeks. I've been told that the SCRA applies while you are deployed as well.
So my question: Can I write to Citi again and ask them to keep the rate down while I'm deployed? Or is it a one shot and done kinda deal?
It's not a huge deal if I can't - I plan on paying off the card with the extra deployment money, anyway - but the less interest, the better, naturally.
Any help is much appreciated. Thank you!
Last edited by Crew Chief; 02-07-2012 at 10:29 AM..
The interest rate is capped at 6% on debts incured prior to joing the military while serving so there should not have been any 1 year, it should be reduced to no more than 6% for the entire time your on active duty. If you are a reservist or NG called for service, it remains at the reduced interest rate until 30 days after you leave active duty.
Citi bank did you one better by reducing it to 0% but they should have kept it at that rate until 30 days after you were discharegd or no longer on actve duty.
The interest rate is capped at 6% on debts incured prior to joing the military while serving so there should not have been any 1 year, it should be reduced to no more than 6% for the entire time your on active duty. If you are a reservist or NG called for service, it remains at the reduced interest rate until 30 days after you leave active duty.
Citi bank did you one better by reducing it to 0% but they should have kept it at that rate until 30 days after you were discharegd or no longer on actve duty.
If active duty, yes ask for the reduction.
Exactly! While it's nice that they reduced the rate to 0% for a year, they are violating your rights by not giving you the 6% rate while you are on continued active duty.
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