SCRA: The DOJ Ups the Ante with New Mandates
March 4, 2021
A Rundown of Additional Servicemembers Eligibility and Communication Expectations for Lenders
The Servicemembers Civil Relief Act (SCRA) protects servicemembers with unique benefits relating to pre-existing financial loans. So, to properly identify a servicemember’s eligibility for benefits, compliant financial organizations follow several operational processes.
The Department of Justice (DOJ) increased consent orders by 100% in 2020. In doing so, they’ve showcased additional steps creditors and service providers should take to determine eligibility and communicate with servicemembers. In this infographic, we highlight the areas to watch.
The DOJ Increases Demands for Lending to Servicemembers
Now is the time to assess and adjust your SCRA program to maintain compliance. Particular areas that are receiving extra scrutiny include:
- Borrower Documentation
- Eligibility Confirmation
- Eligibility Evaluation Timing
- Timing of Ineligibility Notification
- Benefit Expiration
Consequences for Not Meeting Expectations
Failure to master the DOJ’s expectations can lead to extreme regulatory scrutiny and a lengthy and complex SCRA lookback. [We have managed several lookbacks and share some tips in a paper you can access here.] It is imperative to create your SCRA center of excellence now to maintain compliance and provide a best-in-class experience for servicemembers.
Bridgeforce has improved clients’ ability to meet regulatory mandates by building SCRA centers of excellence. We’ve assessed customer journeys and designed workshops on best practices. Contact us to learn how to stay compliant in the changing SCRA landscape.