Date
Creditor Name and Address
Re: Client Name
Client Account Number
Dear Sir or Madam:
Pursuant to §207 of the Servicemembers Civil Relief Act (SCRA), 50 U.S.C. App. 501 et seq., I
request that interest on the above-referenced debt be reduced to 6 percent. I entered active duty
on (state your Active Duty Commencement Date) and am presently on active duty assigned to
(state your Client Unit).
I incurred this debt prior to my entry into the Armed Forces, at a time when I was earning
substantially more than I am now. My entry into military service has substantially
affected my ability to meet this obligation at the original interest rate.
The SCRA sets a 6 percent per annum ceiling on interest charges (including service
charges, renewal charges, and fees) during the period of a service member’s military
service for obligations made prior to the date of entry into active duty when the active
duty materially affects the ability to pay. Since entering active duty, I have experienced a
decrease in salary, adversely affecting my ability to pay. Thus, the balance of my
obligation may not have interest charged at a rate greater than 6 percent per annum.
Interest above 6 percent must be forgiven and not accrued. Please ensure that your
records reflect this statutory ceiling and that any excess charge is withdrawn.
Please be further advised that you may not repossess for nonpayment of an installment
obligation without first complying with the provisions of the SCRA.
Thank you, in advance, for your cooperation in this matter. If you have any questions on this
matter please contact (point of contact handling your affairs include phone and address.)
Sincerely,
Attachments:
Copy of activations orders
