DOD Makes Clarifications Banks Sought on Military Lending Act

Aug. 29, 2016, 4:00 AM UTC

The Department of Defense has published clarifications sought by banks on Military Lending Act (MLA) changes that are soon to go into effect and will expand the types of small-dollar loans subject to a 36 percent rate cap and other military-specific protections.

The DOD’s interpretive rule provides guidance on certain questions the department has received regarding compliance with MLA changes contained in a regulation finalized in July 2015 that banks must comply with on Oct. 3 99 BBR 17, 7/3/12, See previous story, 07/22/15, 140 Banking Daily, 7/22/15.

The changes extended the definition of “consumer credit” for military service members to a much broader range of open- ...

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