Limitations on Terms of Consumer Credit Extended to Service Members and Dependents
The Department of Defense (``Department'') amends its regulation that implements the Military Lending Act, herein referred to as the ``MLA.'' Among other protections for Service members and their families, the MLA limits the amount of interest that a creditor may charge on ``consumer credit'' to a maximum annual percentage rate of 36 percent. The Department amends its regulation primarily for the purpose of extending the protections of the MLA to a broader range of closed- end and open-end credit products. Among other amendments, the Department modifies the provisions relating to the optional mechanism a creditor could use when assessing whether a consumer is a ``covered borrower,'' modifies the disclosures that a creditor must provide to a covered borrower, and implements the enforcement provisions of the MLA.