The Department of Defense has finalized changes to its Military Lending Act (MLA) website, which is used to check a servicemember’s active duty status. Financial institutions must create accounts with the site in order to determine the active duty status of a borrower to determine if provisions of the MLA apply.

The MLA imposes certain limitations on the cost and terms of certain extensions of credit to servicemembers and their dependents and requires additional disclosures for such transactions.

Users of the MLA website site can make a Single Record Request or a Multiple Record Request after creating a user account. MLA website users are required to create a username, password and challenge questions, in addition to providing first name, last name, address and email address.

The updated website also contains a user’s guide, frequently asked questions and information on contacting the Department of Defense.

Under the MLA:

• Servicemembers cannot be charged more than a 36% MAPR.
• A creditor cannot require a covered borrower to submit to mandatory arbitration or give up certain rights under state or federal laws (e.g., Servicemembers Civil Relief Act).
• A creditor cannot require a covered borrower to create a voluntary military allotment to repay a loan.
• A creditor cannot charge a prepayment penalty.