WASHINGTON (8/24/15)--A webinar for CUNA members will break down the Department of Defense’s (DOD) changes to the Military Lending Act (MLA), and is scheduled for Sept. 14.
The DOD finalized the rule, which expands the type of credit products covered by a rate cap, in July.
Under the new rule, “consumer credit products” are defined as credit offered or extended to a covered borrower primarily for personal, family or household purposes, and that is subject to a finance charge or payable by a written agreement in more than four installments.
The rule also institutes a 36% cap on military annual percentage rate (MAPR) of interest.
CUNA’s webinar will explain how to:
CUNA published a final rule analysis earlier this month, breaking down the proposal and highlighting CUNA comments during the rulemaking process.
The exclusion of bona fide fees for credit card accounts, a CUNA request, was included in the final rule. CUNA also pushed for flexibility for short-term, small-dollar loans such as the National Credit Union Administration’s Payday Alternative Loans program, and the DOD provided a limited exclusion from the MAPR for application fees.
The rule goes into effect Oct. 1, and compliance is required by Oct. 3, 2016. Registration is currently open for CUNA’s webinar.