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Monday, October 13, 2014

Department of Defense Proposes Expansion of the Military Lending Act

By ABIA Outside Counsel: Barnett, Sivon & Natter, P.C.

The Department of Defense (“DoD”) is proposing to expand the application of the Military Lending Act (“MLA”) to many other consumer credit products (“Proposal”). The MLA:
  • Limits the amount of interest that a creditor may charge
  • Requires creditors to make certain disclosures
  • Prohibits mandatory arbitration
  • Prohibits a penalty fee if the borrower prepays all or part of the consumer credit
Read the full summary.

Read proposed rule.