Financiers should prepare for added SCRA claims | Auto Finance News Financiers should prepare for added SCRA claims | Auto Finance News
Auto Finance News
Subscribe
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • EXCELLENCE
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings at Banks
    • Securitizations
    • Market Share Monitor
AFN PLUS
Monday, January 25, 2021
Log In
No Result
View All Result
Auto Finance News
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • EXCELLENCE
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings at Banks
    • Securitizations
    • Market Share Monitor
AFN PLUS
Log In
No Result
View All Result
Auto Finance News
No Result
View All Result

Financiers should prepare for added SCRA claims

Robert SavoiebyRobert Savoie
March 20, 2020
in Compliance
2 min read

As the COVID-19 virus pandemic evolves, certain more specific effects are becoming more likely. One of these may result in a significant increase in requests for relief, and the applicability of the obligations imposed, under the Servicemembers’ Civil Relief Act (SCRA).

Financial services companies of all kinds must be prepared to handle these requests and the impacts on their portfolios. Put very simply, the SCRA grants a range of legal benefits and protections to military personnel, which includes activated reservists and members of National Guard units when responding to a national emergency in certain circumstances.

Many states have also adopted the protections of the SCRA and applied them to state guard and militia members not eligible for the federal SCRA, and many states have also enacted benefits and protections that differ from the federal SCRA. As of this writing, Guard units have been activated to help combat the virus in several states, including most recently 2,000 in Georgia. Additional similar activations are likely to occur.

As an example, the SCRA grants servicemembers the right to request a reduction to the interest rate on any interest-bearing obligation to six percent. Depending on the scope and nature of military call-ups in response to the pandemic, financial services companies may face a significant uptick in requests for SCRA interest rate reduction and other relief.

Companies would be well advised to make sure their customer service teams are familiar with the requirements of the federal SCRA and applicable state SCRA laws so they are ready to handle requests for benefits associated with these potential calls to active and qualifying federal or state service. Customer service teams should also ensure familiarity with any additional benefits or protection offers pursuant to company policies.

Robert Savoie is a Member (Partner) in McGlinchey’s Consumer Financial Services Compliance group, based in Cleveland. He can be reached at [email protected] or (216) 455-5065. McGlinchey Stafford is the Compliance Partner of Auto Finance Excellence (AutoFinanceExcellence.org), a sister service of Auto Finance News.

Tags: complianceSCRAServicemembers Civil Relief Act
Previous Post

Stocks advance with US futures; bonds climb: Markets wrap

Next Post

Ford Credit capital stable despite OEM’s maxed out credit

Related Posts

2021 predictions compliance
Compliance

Auto finance compliance predictions for 2021

January 5, 2021
Post covid economic trends in auto finance
Compliance

Post-COVID economic trends in auto finance

December 14, 2020

Sign Up Email List

COMPLIANCE

sponsored by mcglinchey

Auto finance compliance predictions for 2021

Post-COVID economic trends in auto finance

CUSTOMER EXPERIENCE

sponsored by mcglinchey

Will Gen Z bring a new wave of vehicle ownership?

TD Auto ranks highest in JD Power dealer satisfaction survey

TECHNOLOGY

Financing: make it easy, make it fast

Investor caution demands greater assurance from companies

Next Post
GM and Ford can’t shake anguish over where US sales are headed

Ford Credit capital stable despite OEM’s maxed out credit

About

ABOUT US

PRIVACY TERMS

ADA COMPLIANCE

CODE OF JOURNALISM ETHICS

Contact Us

ADVERTISE

HELP CENTER

EMAIL SIGN UP 

Follow Us

twitter twitter linkedin podcast

©2021 Royal Media & Auto Finance News

No Result
View All Result
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • Excellence
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings
    • Securitizations
    • Market Share Monitor
  • +PLUS
  • SUBSCRIBE
  • Log In / Account

© 2020 Royal Media

Go to mobile version