1. Overview
This Notice describes the rights and protections that may apply to U.S. servicemembers and their dependents in connection with their accounts and any credit obligations at PayServices Bank or its affiliates, under the Servicemembers Civil Relief Act ("SCRA"), 50 U.S.C. § 3901 et seq., and the Military Lending Act ("MLA"), 10 U.S.C. § 987.
PayServices Bank does not currently offer credit products directly. Where credit is offered by an affiliate of PayServices Bank or by another bank on the PayServices Network, the SCRA and MLA protections described in this Notice apply to the extent provided by federal law to that affiliate or bank.
2. Who is protected
The SCRA generally applies to:
- Members of the U.S. Army, Navy, Marine Corps, Air Force, Space Force, and Coast Guard, on active duty;
- Members of the National Guard called to active service for more than 30 consecutive days;
- Commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration on active service;
- In some cases, dependents of the above (under specific provisions of the law).
The MLA applies a separate set of protections to "covered borrowers," which generally includes active-duty servicemembers and their dependents in connection with consumer credit.
3. SCRA 6% interest-rate cap
The SCRA caps the interest rate on most pre-service consumer obligations at 6% per year during the period of military service (50 U.S.C. § 3937). To invoke the cap, the servicemember must provide us (or our affiliate) with written notice of military service and a copy of the orders calling them to military service (or any extension), within 180 days of the end of military service. Upon receipt of valid notice and orders, we will reduce the interest rate to 6% per year retroactive to the date military service began, and any interest in excess of 6% must be forgiven (not deferred).
The 6% cap applies only to obligations incurred before the period of military service, not to obligations incurred during military service.
4. Protection against default judgments
Where a court action is brought against a servicemember on active duty and the servicemember does not appear, the court is required to provide additional protections, including the appointment of an attorney to represent the servicemember and the granting of stays of proceedings. PayServices Bank and its affiliates do not seek default judgments against servicemembers without complying with the procedures required by SCRA § 3931.
5. Termination of leases and obligations
The SCRA permits servicemembers, in certain circumstances, to terminate leases (residential, motor-vehicle, and certain commercial leases) and certain ongoing obligations early due to military service. The SCRA also imposes restrictions on the eviction of servicemembers and their dependents from rental housing. While PayServices Bank does not offer residential leases or directly involved consumer leasing, where a deposit account is set up to receive payment for a lease that is terminated under the SCRA, we will work with the servicemember and the lessor to facilitate compliance with the law.
6. Military Lending Act protections
For consumer credit covered by the MLA (generally, closed-end and certain open-end consumer credit, with specific exclusions), the law caps the "Military Annual Percentage Rate" (MAPR) at 36% and prohibits a number of practices, including required arbitration, prepayment penalties, certain mandatory ancillary products, and waivers of certain rights. Where credit is offered through ITAM by an affiliate or by another bank on the PayServices Network, the MLA protections apply to the extent the law applies to that creditor and that credit transaction.
7. Oral disclosure of MLA terms
Before consummating an MLA-covered consumer credit transaction with a covered borrower, the creditor must provide the borrower with both a written and an oral statement of the MAPR and a clear description of the payment obligation. Where credit is offered through ITAM, the creditor offering the credit (not PayServices Bank) is responsible for providing this disclosure.
8. How to invoke SCRA or MLA protections
To invoke SCRA or MLA protections in connection with any account or obligation at PayServices Bank or its affiliates:
- Provide written notice of military service together with a copy of military orders;
- Send the notice to info@payservices.com or by mail to the address in Section 10;
- Where the obligation is held by an affiliate or by another creditor on the PayServices Network, we will forward your notice promptly and will inform you of the affiliate's or creditor's contact for further processing.
You may invoke these protections at any time during your military service, or within the period after service permitted by the relevant statute. We will not require you to use any particular form, but providing the information requested above accelerates our processing of your request.
9. Non-discrimination
It is the policy of PayServices Bank not to take adverse action against an applicant, customer, or counterparty for the exercise of rights under the SCRA, the MLA, or any other federal law providing protection to servicemembers. If you believe you have been the subject of such adverse action, you may file a complaint as described in the Complaints page or with the U.S. Department of Justice, Civil Rights Division (justice.gov/crt) or the U.S. Department of Defense.
10. Contact us
PayServices Bank — Servicemember Programs
950 W Bannock Street, Suite 1100
Boise, Idaho 83702-6140
United States
info@payservices.com