The Military Lending Act (36% Cap)

The SCRA covers debt from before you served; the Military Lending Act caps NEW consumer credit taken out while you serve at a 36% MAPR, and bans the predatory terms that target troops.

Timing decides the rate cap: debt from before service is SCRA (50 U.S.C. § 3937); credit taken during service is MLA (10 U.S.C. § 987).

• What Is the Military Lending Act? The 36% MAPR Cap

  The Military Lending Act caps most credit taken during service at a 36% MAPR under 10 USC 987. Who and what it covers, and how it differs from the SCRA.

  Caps new credit at 36% all-in

• MLA MAPR Explained: The 36% Rate That Counts the Fees

  The MLA cap is a Military APR, not a normal APR. It folds in fees, credit insurance, and add-ons. See a loan under 36% APR that is over 36% MAPR.

  Catch a hidden over-36% loan

• MLA Covered Borrowers: Who the 36% Cap Protects

  The MLA covers active duty, Guard/Reserve on qualifying orders, and dependents, not veterans or retirees. Plus the DoD database check and lender safe harbor.

  Confirm 36% coverage in 30 seconds

• MLA Protections Beyond the 36% Cap: The Banned Terms

  The MLA also bans mandatory arbitration, waivers of your SCRA rights, prepayment penalties, and required allotments, and mandates written and oral disclosures.

  Void a loan with a banned term

• MLA Violations: Void Loans, $500 Damages & Enforcement

  A loan that breaks the MLA is void from inception. Sue for actual damages, at least $500 per violation, punitive damages, and attorney fees under 10 USC 987.

  At least $500 per violation

• MLA Covered Credit: What Loans the 36% Cap Reaches

  The MLA covers payday, title, installment, and most credit cards, but excludes mortgages and purchase-money car loans. What counts as covered consumer credit.

  Know if 36% applies to your loan