More Armor for Military: Military Lending Act Bulks Up
Our military service personnel are afforded special protections regarding consumer transactions and rightfully so. They have enough on their plates and minds without worrying about shady car dealers or unscrupulous lenders trying to rip them off. Unfortunately, the rip-offs and abuses continue but perhaps some new rules will put a further squeeze on the dirty dealers and dissuade bad conduct.
The Department of Defense finalized a new rule to the Military Lending Act which includes the creation of a Military Annual Percentage Rate of 36% for all interest and fees associated with certain loan as well as preventing lenders from requiring military personnel to allow payroll allotments as a prerequisite to obtaining credit. The protections cover vehicle loans, tax refund anticipation loans, auto title loans, and certain payday loans. Read more about the Act’s increased muscle here.
If you are a member of the U.S. military and have questions about or problems with a vehicle purchase, loan, or other consumer transaction contact a local consumer law attorney for a consultation and potential help. Thank you for your service and allow members of the legal profession the opportunity to serve you if and when the need should arise.