New regulations issued by the Department of Defense (DOD) under the Military Lending Act (MLA) will have a major impact on financial institutions. Although the MLA has been on the books since 2006, its focus on closed-end payday loans, vehicle title loans, and tax-refund anticipation loans meant that the law historically had limited relevance to most financial institutions. The new DOD regulations, however, extend the MLA to cover credit products issued and serviced by many banks and credit unions, most notably credit cards and student loans.

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Originally published in the Banking & Financial Services Policy Report, October 2015

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