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Should I pay a debt, or should they adjust to the SSCRA?

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I owe @ 2200 dollars on a vehicle purchase which I only had 2 payments left on my contract, the month before my final payment i re ceived a final payment notice for an amount of 2200 dollars. my monthly payments were only $400, upon inquiring about the debt owed they said it was acrued interest, and had just now added it to the final payment. I didnt have that kind of cash and they stressed the importance of paying in lump sum because the account would soon be charged off. being in the military I attempted to use the soldiers sailors and servicemembers relief act to have them adjust the interest from 23% to 6% over the course of the last 2 years i had been in the military, they refused and said because i was not the primary but the co-signer that they were not required to meet those demands, but all of this has shown up on my credit, they hold me just as responsible as the primary, so why won't they acknowledge my request. If they were to apply the interest over the time specified they would most likely owe me money but thats not even the case i just dont see why I should pay them interest on something that doesnt make any sense. now they have a collection agency threatening action against me and the primary unless i pay a settlement of $1700 5 days from now. Ive already dealt with one agancy and this is the second one that is now making threats, its already charged off and on my Credit report as of DEC06, so whats thepoint the delinquency is there. I'm stuck I feel as though they should acknowledge my request for the SSCRA by law they should but I doubt they have even thought twice about it. am i wrong should i pay or should they acknowledge the SSCRA.

That's a tough one, as I totally see where you're coming from, and out of decency, they should honor the SSCRA, but if there is any type of way around it (i.e., using the, "You're the co-signer, not primary) they'll do it.

Even though the debt was charged off, they can still keep coming after you to collect, and at some stage will probably file a suit against you and other person on loan to try and get a judgment. That's when they usually play the garnishment card.

You could try contacting a debt consolidation company and put the debt in a program. This way you could make monthly payments that are low, and they may then be able to get collector to knock off excessive interest rate.

Sub: #1 posted on Wed, 12/19/2007 - 21:54

Tiffany99 Tiffany99

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hummm.. are you still in the military? is there someone at you base or some kind of veterans advocate that could possibly contact them for you and do a little arm twisting? I know this is a long shot, but maybe evne a call to your senator or Congressmans office might be helpful. Since your the co-signor, is the primary borrower unable to pay anything towards resolving the issue? IF it s on the second collection agency, they might be willing to work something out ( a settlement for even less). What exactly are they threatening? or are they using vauge terms? They may not even be prepared to do anything. If they are indicating specific actions, they are legally required to persure them or they can be fined and sued under the fdcpa.

Who was the original creditor? Check your contract. I have a car loan and the Cerditor keeps threatening me with this accrued interest, then I read the paper work and it says nothing about it. also they admit the "accrued interest" they keep threatening me with is not even mentioned anywhere in my contract but in some welcome packet (which amoaunted to a letter with my account number and the customer service phone number and NO Mention of this additional interest charge). My Wife has a legal plan with her current employeer, we are sending the contract to them for review and have the lawyer write the original creditor a letter to remove these unauthorized, non-contractual charges.

Sub: #2 posted on Wed, 12/26/2007 - 09:27

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I know that this post is quite old but I felt that you and others should know that the SSCRA 6% interest cap applies to both the primary and co-signer of a loan. I had to fight this battle myself when I was in the Marines and after the bases legal department type a letter quoting the SSCRA and where it states that it applies to the Co-signer as well, they finally lowered the interest rate to 6% and backdated it to the day that I entered.

My best advice is dont quit. Get your legal dept involved if need be.

Sub: #3 posted on Tue, 09/09/2008 - 19:43


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