Anyone know if SCRA protects against admin fees on VA debt?

Military Law Discussions
1

I have a debt from the VA that happened when I was activated from the reserves and kept receiving disability payments. Normally, they just garnished the payments when I got off active duty, but now they’ve changed the policy. I ended up being on active duty for a few years, and the VA sent the debt to the US Treasury, which added a huge administrative fee. Navy Legal couldn’t really help since it’s another government department. I don’t dispute the debt, but I’m wondering if there’s any protection under SCRA from this big admin fee. Anyone know if I’m stuck paying it or if there’s something I can do?

2

I’m not sure about the admin fee, but SCRA does offer protections for active duty members, especially for interest rates on debts before service. Maybe check if that applies to your case?

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Lior said:
I’m not sure about the admin fee, but SCRA does offer protections for active duty members, especially for interest rates on debts before service. Maybe check if that applies to your case?

Hmm, but the debt was incurred after you were activated, right? So I think the SCRA protections may not apply here. I’ve read that it’s usually for debts before military service…

4

@Fin
Yeah, that makes sense. I guess you’d have to pay the fee then. Bummer though.

5

I had something similar happen with the VA and ended up having to pay the fee. No real way around it unless you can prove the fee is excessive. But, might be worth trying to talk to a legal advisor if it seems too high.

6

@Ash
Yeah, I’ve heard the Treasury can add fees on top of the debt like that. It’s frustrating, but I don’t think there’s much you can do unless you get some legal backing.

7

There’s a statute under SCRA that protects from interest increases on debts incurred before military service, but since your debt happened after you were activated, it doesn’t seem like that would help. I’d say unfortunately, you might just need to pay it.

8

Thanks for the info, guys. I was hoping there was something I could do to fight the admin fee. Guess it’s a waiting game now to pay it off…

9

Yeah, it’s tough. Maybe just keep an eye on any changes in policy or consult with someone who specializes in VA debts in case they do something different in the future.