Dept. Of Justice Opens Probes Into Recent Servicemember Screwings By Banks In Violation Of SCRA

The Wall Street Journal reports:

• The U.S. Attorney General has "several" ongoing investigations into violations of a law meant to protect active-duty members of the military from high interest rates and foreclosures. A spokeswoman for the Department of Justice said in an emailed statement that the investigations are looking into lenders who overcharged and foreclosed against the homes of servicemembers without court orders. The spokeswoman declined to identify which lenders were under investigation or how long the investigations had been ongoing.

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• The Servicemembers Civil Relief Act caps interest rates for loans to active-duty military members at a 6% annual rate and shields them from foreclosure. The law applies to "any debt incurred" by a servicemember, including credit cards and car loans, which typically carry much higher rates; the law makes some exceptions to its rules.

• The law defines active-duty as "full-time" service, including tours and training, and says those who knowingly break the act face prison and fines.

For more, see DOJ Investigating Violations Of Military Lending Protections (requires paid subscription; if no subscription, TRY HERE, then click appropriate link for the story).