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Is Bravo compliant with the new Military Lending Act requirements?
Military Lending Act – effective October 2016 – Notice to Pawnbrokers
On February 16, I sat in a phone conference with some of the biggest financial lending institutions and the Department of Defense (DOD). There is a lot of concern about how institutions will check borrower’s status. Every customer (social security number) will be required to be checked when payments are made on any financial transaction.
The DOD has decided that only the biggest financial institutions will have access to the Direct Connection API, and beta-testing will begin soon. The DOD has selected Wells Fargo and Bank of America to participate.
But there are other ways to get the borrower’s status.
1. Real-time single searches via the DOD website – Does not require registration
2. Batch Uploads – Requires registration, which as of now, is not available to pawnshops and is TBD
How will it work?
After activating MLA in System Configuration, you will see a link and radio buttons when you add a loan to the transaction. You’ll click the “MLA Check” link and verify the borrower’s status.
If your customer’s borrower’s status meets MLA requirements, select MLA Relevant Loans and the rate will be updated to 36% APR. Bravo instantly handles all of the requirements. It’s as simple as that.
We are waiting for the DOD to announce third-party participation in the Direct Connection API. When that happens, Bravo will integrate. Bravo has already designed and implemented automated integration when this does become available to pawn shops, it’s ready for immediate deployment for our customers.
We’ll keep you posted as we learn more. We’ll also announce when this MLA feature is available and how to activate it.
Thanks for being a Bravo customer!