Military Lending Act (MLA) — 36% APR Cap
Caps the Military Annual Percentage Rate (MAPR) at 36% on consumer loans for active duty members and dependents.
Who qualifies: Active duty, National Guard.
The Military Lending Act protects active duty service members and their dependents from predatory lending:
• Caps the Military APR (MAPR) at 36% on covered loans
• Covers: payday loans, vehicle title loans, refund anticipation loans, deposit advance loans, installment loans, and unsecured credit lines/cards
• Creditors cannot require waiver of legal rights
• Creditors cannot require allotments as repayment
• Creditors cannot require access to bank account for repayment
• Mandatory loan disclosures required
• Predatory lenders violating MLA face civil and criminal penalties
This law primarily targets payday lenders and other high-interest financial products that target military members.