💵 Consumer RightsUpdated: September 2, 2026
Military Lending Act (MLA): 36% MAPR Caps & Protections for Service Members
Reviewed by Consumer Financial Protection & Small-Dollar Lending Review Board
Key Financial Takeaways
Federal consumer protections for armed forces: Military Annual Percentage Rate (MAPR) calculations, mandatory credit counseling, and prohibited mandatory arbitration.
The Military Lending Act (MLA), 10 U.S.C. § 987, establishes rigorous federal protections for active-duty service members and their covered dependents against predatory lending.
1. Key MLA Protections
- 36% MAPR Hard Ceiling: Total borrowing costs including application fees, credit insurance premiums, and finance charges cannot exceed an effective 36% MAPR.
- Prohibition on Mandatory Allotments: Lenders cannot require service members to establish military pay allotments to secure loan approvals.
- Ban on Vehicle Title Pledges: Payday lenders are barred from holding vehicle titles as collateral against short-term military loans.
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Consumer Financial Protection & Small-Dollar Lending Review Board
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