Verifying military members vital in powering credit opportunities
October 3 is compliance deadline
As the compliance date for the Military Lending Act nears, Experian has launched a dedicated Military Lending Act site to help financial institutions meet those new regulations. The updates made last year create new requirements that lenders must address when lending to active duty service members and their dependents.
To help prepare for the implementation of the updates, Experian has worked closely with several federal agencies and banking industry organizations including the Department of Defense, Financial Services Roundtable and the American Bankers Association. Leading the way in providing compliant solutions for our lenders and the credit needs of our active military, Experian can instantly verify military members at the point of origination so lenders know whether an applicant is covered by the Military Lending Act.
“The Military Lending Act provides added protections for the more than 4.5 million U.S. military members and families to assist their financial well-being,” said Klaudette Christensen, vice president of credit services product management at Experian. “Our strong compliance management coupled with our verification services, will help lenders comply with the new requirements.”
The Military Lending Act site provides answers for financial institutions that have questions on how to serve this audience while adhering to laws. Some of the frequent questions include:
- What is the difference between the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA)?
- Will Experian offer a “covered borrower status” on the report?
- Explain the difference between accessing Military Lending Act status directly versus indirectly.
- Will you return the Military Lending Act indicator if the credit report cannot be provided?
Moving forward, additional rules for credit card accounts will be required with a scheduled deadline of October 3, 2017. Experian will be working diligently to help our clients adhere to these requirements as well. Read stories from our own veterans sharing their financial lessons and perils of military life.
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