Military Lending Act (MLA) NCUA Q&A – Credit Reporting Agency Flagging an Individual

Compliance > Lending > Service Members > Military Lending Act
Q:  Will the credit reporting agencies flag an individual as a covered borrower?
A:   Thanks, Gail.  We don't yet know the full answer to that question, but it certainly would be helpful to a lot of lenders if the consumer reporting agencies could do that.  The Defense Manpower Data Center started a pilot program that will allow the big three nationwide consumer reporting agencies, that's Equifax, Experian, and TransUnion, and a few other entities to obtain direct access to the DMDC MLA database.
There are technological issues involved, but DMDC and those parties have been working on this for some time.  One purpose of the pilot program is to allow the consumer reporting agencies to devise a way to add a notation to a standard credit report indicating whether a person is a covered borrower under the MLA.
ADDITIONAL INFORMATION – This Q&A was included in the NCUA’s June 2016 webinar entitled “Preparing to Comply with Regulatory Changes under the Military Lending Act.”  To listen to the audio and view the slides, interested parties may find that information here:

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