Military Lending Act (MLA): 36% MAPR Cap & Active-Duty Protections
By Consumer Emergency Aid & Credit Literacy Board•
Executive Summary & Key Takeaways
Special protections for service members: the Military Lending Act (MLA), 36% Military Annual Percentage Rate (MAPR) cap, and mandatory fee exclusions.
The Military Lending Act (MLA) provides powerful federal protections for active-duty service members and their dependents, limiting borrowing costs and banning abusive practices.
1. Key MLA Protections
36% MAPR Cap: Lenders cannot charge active-duty service members more than a 36% Military Annual Percentage Rate, which includes application fees, finance charges, and ancillary credit products.
Mandatory Arbitration Prohibition: Lenders are legally prohibited from requiring service members to submit disputes to binding mandatory arbitration.
Allotment Coercion Ban: Lenders cannot mandate military payroll allotments as a condition of loan approval.
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