Skip to main content

What are my rights under the Military Lending Act?

The Military Lending Act (MLA) says that you can’t be charged an interest rate higher than 36% on most types of consumer loans and provides other significant rights.

The MLA applies to active-duty servicemembers (including those on active Guard or active Reserve duty) and covered dependents.

Your rights under the MLA include:

  • A 36% interest cap.  You can’t be charged more than a 36% Military Annual Percentage Rate (MAPR), which includes the following costs in calculating your interest rate (with some exceptions):
    • Finance charges,
    • Credit insurance premiums or fees,
    • Add-on products sold in connection with the credit, and
    • Other fees like application or participation fees, with some exceptions.
  • 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 Servicemembers Civil Relief Act.
  • No mandatory allotments. A creditor can’t require you to create a voluntary military allotment in order to get the loan. 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.

Take the next step

Submit a complaint

We’ll forward your issue to the company, give you a tracking number, and keep you updated on the status of your complaint.

Submit a complaint

Was this answer helpful to you?

Please do not share any personally identifiable information (PII), including, but not limited to: your name, address, phone number, email address, Social Security number, account information, or any other information of a sensitive nature.