If passed, the current 2013 defense authorization bill would increase lending compliance burdens, according to a NAFCU report Thursday.
The bill would grant the Department of Defense authority to subject installment loans to a 36% annual percentage rate cap, and add other regulations per the Military Lending Act.
As currently written, the bill would revise the MLA to include all vehicle title loans and payday loans – open-end and closed-end, regardless of duration – in the law's definition of consumer credit and subject to rate limits and disclosures.
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