When is the rate on a servicemember’s credit card debts reduced to 6 percent?
The maximum interest rate on debts incurred before military service is 6 percent. If the contract interest rate is in excess of 6 percent per annum, upon request of or notice by the SM to a creditor, the rate must be reduced during the period of military service to 6 percent per annum. This applies also to debts on which the SM’s spouse is jointly liable. Any interest charged in excess of 6 percent is and shall be forgiven. A creditor, however, may apply to a court for relief from the limitations of this interest-cap provision if it can convince the court that the SM’s military service does not materially affect his or her ability to pay interest at a rate in excess of the 6-percent cap. When can a servicemember terminate a business or home lease? SM’s may terminate their lease of “premises occupied or intended to be occupied” by the SM or his or her dependents “for a residential, professional, business, agricultural, or similar purpose” if the lease is executed by or on behalf of a pe
