I've read the Act (feels like from front to back numerous times), but wanted to run this by others.

Are bank's allowed to report a delinquent loan as such to the credit bureau? We have a customer (who is past due) who is claiming that under the Act we can not report this information to a CRA.

I don't see where we are prohibited from doing this. The closest section I can see that allows us to report this information is section 518. However, this pertains to civil obligations such as taxes and fines.

Your thoughts on this matter would be appreciated.

I am of the opinion that once you have adjusted the loan to comply with SSCRA requirements, you may report it as past due if it is. That is not a collection or repossession action and SSCRA doesn't say they don't have to pay you.

Take a close look at your reputational risk before doing something that, while legal, will look very bad in the newspaper or on TV.

I have to disagree with Richard. While that person is active duty, they'll be able to apply for credit elsewhere. As a lender to the military, I'd like to know if they are defaulting elsewhere. I don't care that they exercised their rights, I do care when they default. Not paying is a default.

I also haven't seen anyone sue a bank because they reported the debt as delinquent just because it was past due. Reputation risk swings both ways.

As Richard doesn't like to see bankers roll over just because a regulator says, I don't want to see bankers run scared because they follow the laws and apply commonly accepted procedures. SSCRA is there to help those servicemembers. I want to do that too. Giving them more debt because I am not aware of another debt they can't pay, doesn't help them.