SCRA website malfunctioning

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According to an announcement posted on the Servicemembers Civil Relief Act Website“[a] bug in the SCRA website is causing the site to give false negatives for some National Guard members whose service should be positively reported by the site.”  The DMDC advises that it is working to resolve the issue, but that a fix will not be in place until at least the evening of Thursday, October 6.  

In the meantime, as a practical matter, it is virtually impossible for lenders to verify that they are in compliance with the SCRA.  In these circumstances, it would be prudent for creditors to consider putting a temporary hold on all collection activities against individuals until the issue is resolved and to advise their counsel and other vendors enaged in collection activities accordingly.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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