Ensure Military Lending Act (MLA) Compliance with Avantus MLA Alert
September 20, 2016
On October 3, 2016 the Department of Defense will require lenders to comply with updated regulations of the Military Lending Act (MLA). This link Military Lending Act (MLA) Final Rule will help lenders understand what the MLA covers and the implications it will have on financial institutions.
The updated regulation will expand service member protections that were granted under the original legislation:
- Coverage - MLA coverage now applies to the same products covered under TILA
- Military APR - Maximum percentage rate of 36% now includes many add-ons
- Eligibility - Lenders are required to verify if a consumer is covered under MLA
- The Military Lending Act will now apply to many open- and closed-end credit products
- The calculation of "Military APR" for disclosure now includes additional charges and payment obligations
- The MLA defines "covered borrowers" to include service members, spouses and certain dependents
To assist lenders in determining whether an applicant is a covered borrower under the MLA, Avantus has developed the ability to check all applicants against the MLA list. Our product "Avantus MLA Alert" can be returned as part of our merged credit report. Once activated, this feature will display a "hit" or "no-hit" response as part of the credit report. This enhancement to our credit report will allow you to determine whether your applicant is covered under the MLA.
To have this feature activated or to learn more about it please contact your Marketing Representative or email us at firstname.lastname@example.org
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