Repossessions: 6.3.5.1.5 Interplay with interest rate restrictions
The Act’s protections against repossession are particularly potent in combination with its requirement that creditors reduce the interest rate on obligations to six percent or less during the period of military service.138 Interest over six percent is forgiven.139 The only exception is if a court determines that the debtor’s ability to pay the original interest rate is not materially affected by the debtor’s entry into military service.140 In the c