The Consumer Financial Protection Bureau (CFPB) published a post recently about additional protections offered to service members and veterans under a new law that went into effect in May 2018. It discusses free credit monitoring, medical debt credit reporting restrictions, and mortgage protections offered to servicemembers and veterans by the Economic Growth, Regulatory Relief, and Consumer Protection Act, which was signed into law by the President of the United States on May 24, 2018.
The new law ensures free credit freezes, which means identity thieves can’t access your credit file. This is because credit freezes make it difficult for thieves to create new accounts that use your credentials or your name. Designed for protecting you from fraud and identity theft, the credit freeze is an integral component of the new law.
The best part is that the new law gives you an opportunity to freeze and unfreeze your credit file per your convenience without paying any fee. This makes it difficult for criminals to access your credit files because it prevents credit from being approved in your name. If you have placed a freeze on your credit file, no one can access it until you lift the freeze.
If you have a child who is under 16, you can place a free freeze for them as well. In addition, if you are accountable for someone or you are their guardian, you can do the same for them as well.
To place a freeze, you will need the assistance of a credit reporting agency such as TransUnion, Equifax, and Experian. Once you contact them to place a freeze online, the agency will address your request within one business day.
While talking about the role of a credit reporting agency, a report says that “You can place a free credit freeze on your Experian credit report through the Experian Freeze Center or by calling 1-888-EXPERIAN (1-888-397-3742). Each credit reporting agency, like Experian, has a web page where you can request security freezes and fraud alerts.”
Here is a detailed explanation of the protections given by the new law
- To receive VA guarantee, financial institutions (lenders or banks) have to fulfill more stringent requirements while refinancing VA home loans
- The SCRA’s servicemember foreclosure protection, which was temporary protection given to servicemembers for up to one year after they come back from active duty, is now a permanent protection
- The new law gives extra credit reporting protections to veterans in terms of certain medical debts that should be paid by the VA
So, as a veteran, if you are planning to refinance a VA home loan, the lender will have to provide more meaningful incentives to benefit you. They can’t trick you anymore by using attention-grabbing phrases like “unbelievably low-interest rates” or “get huge cash back.” They will have to offer something that benefits you.
In short, the additional protections highlighted by CFPB in its new alert are very helpful for service members and veterans.
Article Provided By: Accume Partners