Is the Agency allowed to continue collection on a delinquent borrower who has been called to active military service?

The correct response highlights the protections afforded to individuals called to active military service under the Servicemembers Civil Relief Act (SCRA). This federal law is designed to provide relief to military personnel and their dependents in various aspects, including debt collection.

Under the SCRA, if a borrower is called to active military service, the collection of debts against them is generally prohibited. This means that the agency cannot continue collections on delinquent accounts for individuals in military service without a court order. The intent of this provision is to prevent financial stress on service members during a time when they are typically focused on their military duties, rather than dealing with financial matters.

Other options suggest scenarios where collection could occur, but these do not align with the protections provided by the SCRA. The law emphasizes the importance of protecting service members' rights and their ability to serve without the additional burden of debt collection activities. Thus, under the SCRA, the agency must refrain from collection efforts against a borrower activated for military service, supporting the conclusion that such actions are not permissible under any circumstances during their service.