KTAB News: Military Members to Get Boost Under Oct. 1 MLA Final Rule
September 28, 2015
Active duty service members in Texas, their spouses, and dependents will be better protected against a range of consumer loan and credit products via the Military Lending Act (MLA) final rule.
The final federal rule, by the Department of Defense (DoD), goes into effect Oct. 1, 2015 and impacts any lending entity nationally, including payday and auto title loan businesses, banks, and credit unions. The new protective measures for borrowers include a maximum military annual percentage rate (MAPR) cap of 36 percent, which will apply to all loans. The MAPR includes interest and fees, as well as the cost of any credit-related insurance products sold with a loan. Additionally, allotments are prohibited, so payments cannot come directly out of military members’ paychecks.
Read more here.