Military Lending Act 36% Rate Cap — Block Predatory Credit for Active-Duty Families
What Is It?
The Military Lending Act limits the cost of certain consumer credit for active-duty servicemembers and covered dependents, including a 36% Military Annual Percentage Rate cap.
Why It Helps
- It blocks some of the worst high-cost credit products
- It can make abusive loan terms unenforceable
- It gives military families stronger leverage against predatory lending
What Most People Don’t Know
- The MLA is different from the SCRA and can apply even when the debt was not pre-service debt.
- The 36% cap includes more than just the stated interest rate.
- Some lenders violate the rule by hiding cost in add-on fees.
Good To Know
- The MLA is separate from the SCRA
- Coverage depends on the borrower and the credit product
- Add-on fees can count in the cap analysis