The Military Lending Act was passed in 2007 to protect all active military personnel from predatory lending practices – this would be payday loans, car title loans and refund anticipation loans.
It also protects active National Guard or Reserve personnel, and their dependents.
The MLM provisions are as follows:
– Caps annual interest rates for consumer credit to military borrowers at 36 percent including all fees and charges, credit insurance premiums and other ancillary charges.
– Prohibits lender from securing a consumer credit loan to a military borrower with a personal check, debit authorization, wage allotment, or title to a vehicle.
– Requires written and oral disclosure of interest rates and payment obligations before loan is issued.
Retains the following legal rights for borrowers:
- States must enforce their own laws to protect military families stationed within their borders.
- Lenders cannot require mandatory arbitration or unreasonable notice provisions in the event of a dispute with borrowers.
- Lenders cannot require that borrowers waive their right to legal recourse under any law, including the Service members Civil Relief Act.
– Prohibits rollovers, or same-creditor refinances, renewals or consolidations.
– Makes violations a misdemeanor and preserves remedies including awarding of damages and voiding of contracts.
If you are struggling with payday loan debt give us a call 1-877-280-5100 and talk to one of our payday consolidation experts.
The call is free and the consolation is free. We can start getting you out of your payday loan debt within 2 hours of enrolling with our payday loan debt consolidation program.
We look forward to helping you.
Cheers
Leo