A Servicemember Says Ford Credit Refused to Apply a State Interest-Rate Law to Their Loan

The Case

A consumer, tagged by the CFPB as a servicemember, complained on 19 December 2024 about an auto loan with Ford Motor Credit Company. The loan had been opened and closed in earlier years. The consumer says that while they were in the military, the interest rate on the account was above the rate set by the Louisiana Servicemembers Civil Relief Act, and that they asked Ford Credit to apply that law.

The Consumer

The consumer says they gave the company the text of the Louisiana law. They say the company's legal department refused, even after being asked to review the revised version of the law. The account, they say, was opened while they were serving and stationed in North Carolina, and they are now stationed in Louisiana. They say the law applies to them and the company will not honour it.

The Institution

Ford Motor Credit received the complaint on 26 December 2024, a week after it was filed, and responded on time. It closed the complaint "with monetary relief". The public data does not say how much, or on what basis.

What the Law Said

The consumer relied on a state law. At federal level, the Servicemembers Civil Relief Act limits interest to 6% on debts a servicemember took on before entering military service. According to the consumer, this loan was opened during service, so the federal cap may not apply, which would explain why they relied on a state law. Whether a state law reaches a loan like this depends on the text of that law and on where the loan was made and serviced. We do not decide that question.

What Was Decided

There was no ruling. The company reported closing the complaint with monetary relief. This is self-reported by the company and not verified by the CFPB. The record does not show whether the relief was a refund of interest, a rate change or something else.

Why It Matters

A refusal by a lender's legal department is not the end of the road. The company first said no, and after a CFPB complaint it reported a monetary outcome. We cannot say the complaint caused the change, but the order of events is on the record.

What You Can Learn From This

• If you are in the military, check both federal and state protections. They are separate laws with different conditions.
• Quote the exact provision and attach the text when you ask a lender to apply a law. Ask the company to state in writing why it does or does not apply.
• If the first answer is no, a CFPB complaint costs nothing and creates a record the company must respond to.

Documents & Evidence

Primary source: the CFPB complaint record (ID 11223980).

A CFPB complaint is the consumer's account, not a finding of fact. Company responses are self-reported and are not verified by the CFPB.