Servicemember protections, applied automatically.

The Servicemembers Civil Relief Act protects those on active duty from certain financial consequences of service. Its key provisions for collections: interest on debts incurred before entering active duty is capped at 6 percent for the duration of service (and for a year after for mortgages), with the excess forgiven; servicemembers are protected from default judgments without a military status affidavit and appointed counsel; and certain actions, including repossession of property under pre-service installment contracts and foreclosure, require a court order. The Military Lending Act separately caps rates at 36 percent MAPR for covered borrowers on most consumer credit and prohibits mandatory arbitration and certain other terms.

Regulators, including the CFPB, DOJ, and prudential regulators, treat servicemember violations as a priority, and enforcement actions have carried large penalties and public consequences. The core compliance challenge is knowing who is on active duty. The Defense Manpower Data Center database provides this, but checking it requires a process, and status changes over time.

HL Hunt screens every account against DMDC at placement and on a configurable schedule, and always before any legal action. Active-duty matches automatically trigger interest reduction to 6 percent on pre-service debt with proper forgiveness, hold protected actions, and flag the account for the affidavit requirement in any legal placement. MLA status is tracked for covered loans. Certificates and actions are archived, and outreach to servicemembers explains their protections.