NPA’s Government Relations Committee has learned of language being drafted on Capitol Hill that would apply the Military Lending Act (MLA) 36% Annual Percentage Rate Cap to all consumers just as if they were a “covered borrower” active duty member of the military, spouse or dependent(s). The draft we have seen thus far includes all of the penalties for failure to comply that are included in the MLA.
In other words folks, we will quite probably soon be facing a Federal Rate Cap bill. The reality check here is the same we speculated about when the MLA was expanded and went into effect some three years ago. What’s to prevent this rate from being extended in the future to all borrowers? The language we have seen in this bill will do just that.
This is serious and we all know it. Please know that NPA’s Government Relations Committee is on top of this, and when more information is available, we will get it to you as soon as possible. Meanwhile, you are encouraged to let Government Relations Liaison, Fran Bishop firstname.lastname@example.org, know of contacts and lines of communication you have made with your Members of Congress.