{"id":353825,"date":"2018-08-17T17:22:45","date_gmt":"2018-08-17T22:22:45","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/military\/administrative-issues-benefits\/financial-protections-and-the-military-lending-act.html"},"modified":"2023-08-22T07:40:53","modified_gmt":"2023-08-22T12:40:53","slug":"financial-protections-and-the-military-lending-act","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/military\/administrative-issues-benefits\/financial-protections-and-the-military-lending-act.html","title":{"rendered":"Financial Protections and the Military Lending Act"},"content":{"rendered":"\n
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Financial Protections and the Military Lending Act<\/h1>\n
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\n By Thomas Hootman, J.D.<\/a> | Legally reviewed by Caoilte Kurtzman, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Increasingly concerned about predatory lending practices targeting members of the military, Congress enacted the Military Lending Act (MLA) in 2006 to protect active-duty service members from unscrupulous lenders.<\/p>\n\n <\/div>\n\n

 This federal law initially covered only direct personal loans but has since been expanded to cover other consumer credit transactions. It also covers things like payday loans, application fees, and credit insurance premiums.<\/p>\r\n

The MLA does not apply to the general public. Only active-duty service members (including active Guard Reserve), their spouses, and certain dependents<\/a> are covered. You can check whether you are currently covered through the Defense Manpower Data Center<\/a> (DMDC) website. Read on for a brief introduction to the MLA.<\/p>\r\n

What Loans Are Covered by the MLA?<\/h2>\r\n

The MLA<\/a> protects against \u201ccreditor[s] who extend consumer credit to a covered member of the armed forces or a dependent . . . ." "Consumer credit<\/a>" is defined as \u201ccredit offered or extended to a covered borrower primarily for personal, family, or household purposes, and that is:<\/p>\r\n