IS YOUR COLLECTIONS TEAM FAMILIAR WITH SCRA & RISKS OF NON-COMPLIANCE?

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A recent NAFCU Compliance Blog discussed a settlement the U.S. Department of Justice made with PHH Mortgage Corporation (PHH) to correct allegations that it violated the Servicemembers Civil Relief Act (SCRA). The settlement awarded $125,000 to each of the six affected servicemembers. The purpose of the SCRA is to protect servicemembers’ civil rights during their military service with stiff penalties assessed to organizations for non-compliance. Capital One and Navy Federal Credit Union are two other examples of FIs penalized in the millions of dollars for SCRA non-compliance.

SCRA compliance is not an option. Your collections team and agents or collections outsourcing partner needs to be intimately familiar with the SCRA’s benefits and protections to servicemembers.

I welcome your thoughts on this topic. Email me at Jack.Sullivan@coastaloutsourcedsolutions.com

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