Military Lending Act Regulation Update

Beginning October 3, 2016, a new Military Lending Act (MLA) rule will go into effect, requiring a cap of 36% MAPR (Military Annual Percentage Rate) for all loans, except for those requested on credit cards and purchases of property. The rate is designed to provide additional safeguards around consumer credit transactions and to better prepare those affiliated with the military for financial success.

This MLA and rate requirement applies to anyone from one of the following groups:

  • All active duty military
  • Reserve military on active duty orders longer than 30 days
  • Qualifying dependents

In comparison to APR, the MAPR will calculate ancillary or "add-on" products and application fees as pure interest. Based on the new MLA rule, these additional products and fees will be available for those protected under the new regulation as long as the MAPR does not exceed 36%.

Possible ancillary products or application fees may include, but are not limited to:

  • Major Mechanical Protection (MMP)
  • Guaranteed Asset Protection (GAP)
  • Credit Life and Credit Disability (CL/CD)
  • Small Dollar Loan’s Prepaid Finance Charge

This new policy does not affect those who currently have loans through Firstmark Credit Union.

To reach a Firstmark representative directly, please call our loan sales team, Monday thru Saturday from 8:30am - 5:30pm at (210) 442-0199. You can also call (210) 342-8484 to hear our recorded message regarding the MLA rule.

For more about the Military Lending Act, please visit the resources below:

 U.S. Department of Defense
 Federal Register
 National Credit Union Administration