ATLANTA--(BUSINESS WIRE)--FactorTrust, The Alternative Credit Bureau, announces the launch of its LendProtect MLA Check. The service is designed to help lenders to comply with the rule beginning Oct. 3, 2016. The service allows lenders to quickly search the applicant’s information, streamlining the verification of covered borrowers through the Department of Defense’s (DOD) Military Lending Act database.
The DOD significantly expanded the scope of the Military Lending Act of 2006 (MLA) last year to broaden the definition of customer credit and included a “safe harbor” from liability for lenders who verify MLA status of applicants. The MLA limits the amount of interest that a creditor may charge on consumer credit to a Military Annual Percentage Rate (MAPR) of 36 percent.
“Under the final DOD rule, lenders must check each credit applicant to confirm that they are not an active duty service member, spouse, or the dependent of a service member. We are committed to helping our customers through this ever changing industry. We developed LendProtect MLA Check to help lenders efficiently and fully meet these new requirements,” states Greg Rable, FactorTrust Chief Executive Officer.
FactorTrust has provided alternative credit data, analytics and risk management solutions on underbanked consumers for lenders since 2006. Most recently, the company announced the release of LendProtect ATR, a solution which ensures short-term lenders have the data needed to verify consumers’ ability to repay loans.
For more information on FactorTrust, please visit www.FactorTrust.com or contact FactorTrust at 1-866-910-8497.
FactorTrust, The Alternative Credit Bureau, helps lenders manage the credit lifecycle of underbanked consumers using unique alternative credit information not available from the Big Three bureaus, enabling them to offer non-prime consumers the credit they deserve. Nearly 100 million U.S. adults have non-prime scores. Leveraging the company’s credit information, lenders can more accurately predict future borrowing behavior, credit performance and risk scoring for this growing segment. Headquartered in Atlanta, the experienced FactorTrust team of predictive analytics specialists, statisticians and financial industry experts has delivered unique data and valuable insight to lenders throughout the U.S. for nearly 10 years. For more information on the quarterly FactorTrust Underbanked Index or the company itself, visit www.FactorTrust.com.