Summary outlines MLA rule effective dates
SEPT. 21, 2015 -- New rules implementing the Military Lending Act (MLA) take effect next week, a summary of the rule posted by NASCUS reminds. The summary points out that, while the rule takes effect on Oct. 1, compliance is not mandatory for another year (Oct. 3, 2016), and provisions related to credit cards become effective in two years (Oct. 3, 2017). The MLA limits the amount of interest that a creditor may charge on ‘‘consumer credit’’ to a maximum annual percentage rate of 36%. With the amended final rule, the Department of Defense has extended the MLA protections to a broader range of closed-end and open-end credit products, modified the provisions relating to the optional mechanism a creditor could use to identify a ‘‘covered borrower,’’ modified the required disclosures, and implemented enforcement provisions.
Final MLA rule (Limitations on Terms of Consumer Credit Extended to Service Members and Dependents)