cancel
Showing results for 
Search instead for 
Did you mean: 

SCRA Advice

tag
JWatson0405
Contributor

SCRA Advice

AH! Went to spell check my original post and it was wiped away due to an error, what a pain! I'll retype it out as I really need help! Smiley Sad

First off, I'll say I am a new contributor to MyFico, but have frequented the website many times as I had some foul ups with my credit when I was just out of high school. It was really more neglect than anything else, my approach was to keep my head in the sand rather than take charge and make the sacrifices required to rectify my credit standing. I put a great deal of work in to getting my credit standing where it needed to be and a lot of the techniques and advice I found was from here, on MyFico.com The advice has often been very constructive and accurate. I hope to have the same luck with my question!

I need some advice from some people who maybe have been in the same situation as me, or are more familiar with the Soldier Civil Relief Act (SCRA) than I am. I'll give an overview of where I stand and then a detailed description of my problem/question.

 

Accounts: Honda Financial Auto Loan - 2.99% 23,000 balance - 1 year old

USAA Personal Loan - 4.99% 20,000 balance - 2.2 years old

CC - Low limit, $0 balance - 1 year old

CC - Low limit, $0 balance - 3 years old, stopped reporting to CRA, required by FDIC or something.

Income - $5200 a month, plus deployment benefits (currently deployed to Iraq) Monthly debt - $980 (Car loan - $501, Personal Loan - $480)

 

So, here's my dilemma. Graduated college May 2010, commissioned as an officer into the Army - National Guard immediately following graduation. Was deploying with my guard unit in May 2011, so had to get qualified through different military schools prior to then. Was shipped to Officer qual school in September 2010 and completed that training Feb 2011. Was supposed to attend follow on training in Feb 2011 through April 2011, but unfortunately the orders did not come through as there was not sufficient funding available, an issue that plagues the National Guard! While I was on my AD orders for officer qual school my car crapped out, so I decided it was time to purchase a new one. Was qualified by Honda Financial Services, using their college grad loan program for my new car. Started paying on that account December 2010. Found out at the end of January that I would not be attending follow on schools, so effectively unemployed for next 4 months (February to May). I was unable to find any work, even temp agencies were reluctant to hire someone for that short a period of time. Had some money in savings, but that was tapped by the time May rolled around with loan payments, rent, etc. Went onto State Orders May 14, 2011 and transitioned into AD orders for deployment on May 27th. My first late payment to Honda was May. I am also reported as paying late in July and August. They are reported as 30 days late on Equifax, though I believe I may have been 60 days late on one of those months. I made payments as the money came in once I was back on orders, though I still had to make sure I was paying rent as my wife was living in the apartment, and we definitely could not afford to get evicted or have trouble with our apartment.

 

The account is back in good standing as far as its up to date with payments and set up again on automatic payments and it won't be an issue again. I'm just wondering if I have any case here with SCRA as the deployment certainly had an adverse effect on my ability to make my payment; or is my only option to attempt GW letters to Honda to have these late payments forgiven? I'd be willing to make payments ahead of time (I was thinking of offering to pay 12 months of payments over the phone or something to show my ability to pay or something. Not sure if that is ridiculous, or worth mentioning to them.), or really could pay off the entire loan in a few months if that would be better my credit. My wife and I would like to buy our first home when I get back from deployment and plan on using the VA loan to do so. I believe the late payments within 12 months disqualify me from the loan, so I really want to exhaust all options for getting these removed; I also believe I have a genuine case that should be considered for removal, but who knows what they will think. Thanks for any help you guys can offer.


Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
Current Score: EQ-701(1/18/2013) TU-735(1/20/2013)
Goal Score: 750s!!


Take the FICO Fitness Challenge
Message 1 of 8
7 REPLIES 7
llecs
Moderator Emeritus

Re: SCRA Advice

Welcome to the forums and thanks for serving!

 

Is there any aspect or section of SCRA that may apply or be of use here?

 

I'd send a GW. I'd probably call it in to start too. Paying a little in advance won't likely help per the GWs. Besides, they'd take that money and apply it to the principal, and you'd still have to keep paying the following month.

Message 2 of 8
JWatson0405
Contributor

RE: SCRA Advice

Thanks for the post and recommendation.

 

As an update:  

 

I called Honda Financial today and spoke with a really helpful CSR for about 30 minutes.  I'm really glad that I tried calling before sending out my GW letters.  I was really expecting to just come out of the conversation with a good address to try for the GW letter, but the CSR was really helpful and took the time to listen to my story and situation.  I don't know what exactly what will come of it, but she asked me to submit a written request for the adjustment along with my supporting documents.  I'll be submitting those and should hear back from her within 2 business days.  Hopefully something good comes of this!

 

Thanks again for the suggestion.


Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
Current Score: EQ-701(1/18/2013) TU-735(1/20/2013)
Goal Score: 750s!!


Take the FICO Fitness Challenge
Message 3 of 8
the_jan_b
Established Contributor

Re: RE: SCRA Advice


@JWatson0405 wrote:

Thanks for the post and recommendation.

 

As an update:  

 

I called Honda Financial today and spoke with a really helpful CSR for about 30 minutes.  I'm really glad that I tried calling before sending out my GW letters.  I was really expecting to just come out of the conversation with a good address to try for the GW letter, but the CSR was really helpful and took the time to listen to my story and situation.  I don't know what exactly what will come of it, but she asked me to submit a written request for the adjustment along with my supporting documents.  I'll be submitting those and should hear back from her within 2 business days.  Hopefully something good comes of this!

 

Thanks again for the suggestion.


Keeping my fingers crossed for you!  Let us know how it works out for you; and as I say to my daughter who's been serving in the Navy since 2001...THANKS FOR YOUR AWESOME SERVICE!!!

Enjoying your freedom? Thank a servicemember and their family!

In the garden since 26 Jun 14...

I am digitaldiva's alter-ego


Message 4 of 8
ntg187
Established Member

Re: RE: SCRA Advice

We all appreciate your service (former army myself, currently civilian in afghanistan).  I am a huge planetfeedback advocate and I would suggest that you go there and send the same hardship story to honda via that website (itll send it straight to the CEO - who will have his personal assistant fix the issue for you... much like they did for me in the past while I was still active duty).  I would probably wait to hear back, and then go planetfeedback route before bombardng the place with GW letters and emails even faxes if you must.  The SCRA really isnt going to do anything for you since from my understanding is just to lower interest rates while deployed and doesnt excuse you from loan payments at all.  GL, and report back with results!


Starting (01/01/11) : Approx 520
Current (11/17/11) : TU-679 / EQ-656 / EX-??
Goal (01/01/13) : >780 (all)


Take the FICO Fitness Challenge
Message 5 of 8
JWatson0405
Contributor

Re: RE: SCRA Advice

Thanks for the words of encouragement and the feedback.  Thought I'd give an update on the situation.

 

I heard back from the customer service rep that I had been working with at Honda Financial.  She has been great, really helpful and understanding.  She got back to me via voicemail and let me know that she would be having my 3 (three) 60 day lates removed, (I guess through this whole ordeal, they had charged me with 3 60 day lates, and 2 (two) 30 day lates; (was reported to Equifax as 3 30 day lates.))  While this is incredibly helpful and I am so thankful she is doing that, it does still leave me unable to pursue my home mortgage through the VA for at least another year, from my understanding.

 

Do I press the matter any further, or just leave it at that, as it is still very helpful.  I'm not sure the reasoning behind why she wouldn't remove the 2 30 days, I have yet to hear back.

 

Thanks for any advice anyone can offer.


Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
Current Score: EQ-701(1/18/2013) TU-735(1/20/2013)
Goal Score: 750s!!


Take the FICO Fitness Challenge
Message 6 of 8
JWatson0405
Contributor

Re: RE: SCRA Advice

Update: Spoke with another CSR, another very friendly person who was willing to take the time to listen to my story and work with me.  Have to say I have been very happy with the level of service I've experienced with HFS.

 

Final account status:

 

Went from 3 60 day lates and 2 30 day lates to 1 30 day late.  Really happy about the outcome, and hoping this means I'll be able to continue the journey to home ownership.

 

Thanks for the input and suggestions here.


Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
Current Score: EQ-701(1/18/2013) TU-735(1/20/2013)
Goal Score: 750s!!


Take the FICO Fitness Challenge
Message 7 of 8
Anonymous
Not applicable

Re: RE: SCRA Advice

This issue has been counseled to us in the following manner by the JAG depoyment team.

 

SCRA protects any Servicemember from ALL adverse reports while you are called to active duty for deployment.  If you send in a copy of your orders that pertain to the time period, the CRA must remove any adverse report while you are under SCRA.

 

http://www.justice.gov/usao/az/rights/Servicemembers_Civil_Relief_Act.pdf

 

III. The SCRA Protect Servicemember's Credit:

Whenever a servicemember exercises his/her rights under SCRA, the Act prohibits anyone from

adversely affecting his/her credit by:

 

a determination by a lender that the member is unable to pay;

a denial or revocation of credit by a creditor;

• a change in the terms of an existing credit arrangement;

a refusal by a creditor to grant credit to the member;

an adverse credit report;

a refusal by an insurer to insure the member or or a change in the terms offered or

conditions required for the issuance of insurance.

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.