Question of the Week
Friday, March 23, 2018 8:15 AM

Question:  Under the MLA, at what point are we required to check for covered borrower status?

Answer:  The MLA provides a safe harbor for when a creditor “makes a timely determination regarding the status of a consumer at the time the consumer either initiates the transaction or submits an application to establish an account, or anytime during a 30-day period of time prior to such action. Therefore, a creditor qualifies for the safe harbor…when the qualified covered borrower check that the creditor relies on is conducted at the time a consumer initiates a credit transaction or applies to establish an account, or up to 30 days prior to the action taken by the consumer.”