Important change to the Military Lending Act

The Military Lending Act (MLA) is a federal law enacted in 2006 to protect servicemembers and their covered dependents from excessively high interest rates on certain consumer agreements. The maximum interest rate a creditor may charge for these transactions is 36%, including most premiums and associated fees. Originally these protections only applied to payday loans, vehicle title loans, and refund anticipation loans; however, the new rules greatly expand coverage of the 36% interest rate well beyond the few original categories. Read the full post to learn more.