A.3 Processing SCRA
SCRA (Servicemembers Civil Relief Act) is a United States federal law that protects soldiers, sailors, airmen, Marines, Coast Guardsmen, commissioned officers in the Public Health Service and National Oceanic and Atmospheric Administration, from being sued for payment defaults.
The system is facilitated to be compliant with these SCRA laws. The following features are supported:
- Interest Rate Limitation, Prevention of Acceleration of Principal during Borrower's Military Duty
- Fees, Bankruptcy & Deferment rules applicable during Military Duty by the Account holder/Borrower
- Reverting to pre-SCRA terms when Account holder/Borrower is OFF Military Duty
- Validations with respect to Account holder/Borrower reporting Military Duty and
- Validations with respect to Guarantor being on Military Duty.
To be compliant with the above SCRA features, you can setup;
- Transaction Posting checks
- Related configurations OFF MILITARY DUTY through a transaction which will revert to original contractual terms for payment amount, interest rate and term.
- Post the OFF MILITARY DURY date, if payment is missed as per contracted billing cycle, delinquency fee transaction is posted separately.
However, delinquency fees will not be applied for period of Borrower's Military duty.
This section consists of the following topic: