10 U.S.C. § 987
The Military Lending Act, as amended, imposes a 36% rate cap, bans mandatory arbitration, and imposes other restrictions, and requires disclosures for “consumer credit.
The Military Lending Act applies to active-duty service members (including those on active Guard or active Reserve duty) and covered dependents.
The Military Lending Act include:
- •.A 36% interest cap.
- •.No mandatory waivers of consumer protection laws. A creditor can’t require you to submit to mandatory arbitration or give up certain rights you have under State or Federal laws like the Service members Civil Relief Act.
- •.No mandatory allotments. An allotment is an automatic amount of money taken from your paycheck to pay back your loan.
- •.No prepayment penalty. A creditor can’t charge a penalty if you pay back part – or all – of the loan early.
- •.Consumer Payments. A creditor may not use a post-dated check provided at the time credit is extended that deprives the borrower control over payment decisions. A creditor is prohibited from using the borrower’s account information to create a remotely created check or payment order to collect payments on consumer credit from a covered borrower.
We. Requires either a signed Document or an oral recorded statement from every person requesting a Consumer Small Loan. Consumer Small Loans offered by us are not available to persons covered by the Military Lending Act.