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Bravo Has Launched Our Military Lending Act Compliance Feature
Effective October 3, 2016, the Military Lending Act (MLA) will create a major shift in pawn operations for those wishing to remain compliant with the Department of Defense’s regulations. The legislation will change the information and process needed for pawnbrokers to complete transactions with their clientele. The MLA, which hopes to protect and assist military members looking to take out a collateral (pawn) loan, now requires pawnbrokers to verify the “covered borrower” status of each customer.
As a pawn point of sale platform provider that prides itself in compliance and efficiency, we’ve developed a tool within the Bravo platform to streamline the MLA verification process now required of pawnbrokers. With the click of a button, the tool will direct the pawnbroker to the DoD’s MLA verification website and display the customer information already in Bravo for easy input into the MLA system. If the check verifies a person’s eligibility to receive the MLA rate of 36% APR, the pawnbroker clicks one button to automatically update the rate to abide by the MLA rule. Pawnbrokers using the new tool are very satisfied from a validation standpoint. Mark Johnson of TNT Pawn explains, “The MLA process in Bravo is really well done. I love the way it helps us manage the new requirements.”
With such a transformative change in the way pawnbrokers do business, many are feeling confused and wary of how it will impact their business. Suzanne LaProva of Patriot Gun & Pawn says, “First, we are huge supporters of the military and first responders in the community. We have no issue whatsoever to help military families. That said, I think the impact of MLA on the pawn industry is a lot of confusion and disappointment. Not a lot of clarity of who qualifies, background check, and will the DoD system be updated with all the correct information. Probably a great idea in theory but very difficult to implement and probably should have come up with something else.”
The intent of the MLA tool inside of Bravo is to help eliminate confusion and margin of error for pawnbrokers nationwide. “With such impactful regulations like the Military Lending Act bearing down on pawn shops, it is the job of a pawn point of sale system to develop the tools necessary to help protect the pawnbroker and streamline their operations as much as possible,” says Tally Mack, Bravo’s Vice President of Business Development. Everyone at Bravo is invested in doing their part to help out the industry in times like these.
Contact a Bravo Representative by giving us a call at 888-407-6287 to learn more about the MLA tool and see a demo of it in action.
More resources on the Military Lending Act: