As requested by CUNA, the Department of Defense (DOD) has released guidance on changes to the Military Lending Act (MLA) that become effective in just over a month--on Oct. 3. CUNA is analyzing the 24-page guidance and will inform member credit unions soon of the impact of the guidance.
The guidance will become effective immediately upon publication in the Federal Register, which is expected Friday.
The DOD changes added new requirements to loans extended to covered military servicemembers.
CUNA was concerned that, as the implementation period approached, credit unions did not have necessary clarifications to assure their continued service to military servicemembers in a consumer-friendly way.
CUNA asked for several substantive changes to the rule and also requested clarifications to assure that servicemembers can continue to receive credit from one of their safest and best options, credit unions, by:
CUNA also has expressed strong opposition to changes to the process by which creditors determine whether a consumer is a covered borrower, which it believes could present challenges that could jeopardize or reduce the availability of credit to servicemembers.