Military Lending Act

10 U.S.C. § 987

The Military Lending Act, as amended, imposes a 36% rate cap, bans mandatory arbitration, and imposes other restrictions, and requires disclosures for “consumer credit.

The Military Lending Act applies to active-duty service members (including those on active Guard or active Reserve duty) and covered dependents.

The Military Lending Act include:

•.A 36% interest cap. 

•.No mandatory waivers of consumer protection laws. A creditor can’t require you to submit to mandatory arbitration or give up certain rights you have under State or Federal laws like the Service members Civil Relief Act.  

•.No mandatory allotments.  An allotment is an automatic amount of money taken from your paycheck to pay back your loan.  

•.No prepayment penalty. A creditor can’t charge a penalty if you pay back part – or all – of the loan early.  

•.Consumer Payments.   A creditor may not use a post-dated check provided at the time credit is extended that deprives the borrower control over payment decisions.  A creditor is prohibited from using the borrower's account information to create a remotely created check or payment order to collect payments on consumer credit from a covered borrower. 

S&P Loan Co. Requires either a signed Document or an oral recorded statement from every person requesting a Consumer Small Loan. Consumer Small Loans offered by S&P Loan Co. are not available to persons covered by the Military Lending Act.