The new rules define consumer credit to include payday loans, vehicle title loans, refund anticipation loans, deposit advance loans, installment loans and credit cards extended to service members. These loans are now subject to the Military Annual Percentage Rate cap and other Military Lending Act protections, according to a White House press release.

The rules also count charges for add-on products, such as default insurance, in calculating the MAPR. If the rules are violated, the loans will be void and the lender could face civil and criminal penalties.

The National Consumer Law Center supported the rules and said they will better protect military members from arbitration clauses and predatory lenders who found loopholes in the old rules and pushed high interest rates on installment loans.

"We find it abhorrent that some lenders target service members with high rate loans," Lauren Saunders, associate director at NCLC, said. "The new rules give broader protection to those who serve from unaffordable loans over 36%."

NCUA Chairman Debbie Matz previously warned that some of the rules could hurt credit unions' ability to offer small dollar loans to service members. However, Matz said some of those concerns had been addressed and resolved.

"The Defense Department's revised rule implementing the Military Lending Act is a major victory for members of our nation's military – and for the credit unions that serve military families at home and abroad," Matz said in a statement. "Military servicemen and servicewomen put their lives on the line each and every day. Unfortunately, some are victimized by predatory lenders each and every day. The NCUA, like the Defense Department, is working to ensure that military members who protect our nation are protected from predatory lenders. So we are very grateful to the Defense Department for revising their rule as we requested. The final rule will permit military members to continue receiving affordable payday alternative loans, which meet the NCUA's regulatory standards for consumer protection. As a result, credit unions can continue to fully serve the military members who so valiantly serve our nation."

NAFCU also voiced support for the final rule, stating that it makes important, NAFCU-sought modifications to how a credit union can meet its disclosure requirements under the MLA.

"We have always supported protecting the troops from predatory lenders. We appreciate DoD taking a measured approach with the final rule," NAFCU Military Liaison Quincy Enoch said. "While NAFCU appreciates that the DoD heeded many of our concerns and took steps in this final rulemaking to limit the impact on credit unions, we are still carefully reviewing it to assess its full impact on our members. Credit unions have a long track record of providing much needed financial services to the troops, and NAFCU believes that regulators should be cautious of burdening this relationship."

CUNA said it will continue to scrutinize the rule, however.

"We appreciate that there is a one-year safe harbor period for compliance with this rule," CUNA Deputy Chief Advocacy Officer Elizabeth Eurgubian said. "CUNA strongly supports MLA protections for service members from unscrupulous business practices of organizations targeting our military personnel but will continue to evaluate the rule as the DoD did not completely exempt credit unions, who have always been dedicated to the financial well-being of their member-owners, from the reach of the regulation."