The Department of Defense recently issued the final rule of the Military Lending Act (MLA), which covers all forms of payday loans, vehicle title loans, refund anticipation loans, deposit advance loans, installment loans, unsecured open-end lines of credit and credit cards. Among other protections, the MLA caps at 36 percent the interest rate on covered loans to active-duty service members, requires disclosures to alert service members of their rights, and prohibits creditors from requiring a service member to submit to arbitration in a dispute. The latest final rule allows for industry compliance by Oct. 1, followed by a staggered implementation period.
For more on military benefits, visit the Military Benefits section.
