This release applies to all credit unions, state and federal. It covers Department of Defense (DoD) regulations that implement the federal Military Lending Act (MLA), limiting the costs and terms allowed for consumer loans made to people in active military service or to their dependents.
TWO-PART RELEASE: LOANS CLOSED BEFORE/AFTER OCT. 3, 2016
This release is divided into two parts:
- The main body of this release explains amendments to the MLA rules that take effect in 2016-17. The rules are quite broad. They apply to consumer credit transactions or accounts that are consummated (i.e., closed) or established on or after Oct. 3, 2016. This date is extended to Oct. 3, 2017, for credit card accounts. These rules cover most all closed- or open-end consumer loans (with some exceptions) that credit unions (and other creditors) make to those in active military service, their spouses, or their dependents.
- The Appendix to this release explains the MLA rules that apply to consumer credit that was extended and consummated (i.e., closed) on or after Oct. 1, 2007 and before Oct. 3, 2016. The old version of these rules will continue to apply to those existing loans, even after Oct. 3, 2016. Those old rules apply only to three types of loans – payday loans, vehicle title loans, and tax refund anticipation loans – so they are more limited than the rules covered in the main body of this release.
Please be sure to consult the appropriate part of this release for information pertaining to a particular loan.