Question of the Week: SCRA Safe Harbor

Question: 

I have a member who has presented documentation to prove they are on active duty. When I look on the SCRA website, they do not show as currently being on active duty. Am I required to accept written or verbal verification from the servicemember?

Answer: 

No. In order to receive safe harbor protection, the creditor must confirm a borrower's status using the DoD database (also known as DMDC database) or a national consumer reporting agency instead of relying on a covered borrower's written or verbal statement. A date-stamped database search or report indicating the member is not on active service is sufficient to deny the rate reduction.