Is DoD-derived (SCRA/MLA) data FCRA-permissible for lending decisions?

In short, under SCRA section 3919 a lender must not take adverse action solely because a service member exercises or qualifies for SCRA protections, such as active-duty debt relief. That includes:

• Concluding the service member is unable to pay the obligation on its terms

• Denying or revoking credit, changing the terms of existing credit, or refusing credit in substantially the same amount or on the same terms requested

• Adversely reporting to a credit bureau

• Noting in the service member’s record that they are a member of the National Guard or a reserve component

This is a nuanced area. We recommend reviewing the rules with your compliance team and applying your own risk and compliance framework. Baselayer provides the status check and the DMDC certificate as documentation; it does not provide legal guidance on permissible use.