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 proposed rule.