Christopher Peterson, Professor of Law at the University of Utah S.J. Quinney College of Law, recently consulted and advised the U.S. Department of Defense on regulations designed to protect military service members from predatory lending.
On October 1, the Defense Department published a proposed regulation in the Federal Register that would substantially strengthen the rules implementing the Military Lending Act (the “MLA”). This statute caps interest rates that lenders may charge to service members at 36%. The proposed regulation expands the scope of the statute’s protections to include a broad range of credit products including credit cards, auto title loans, and payday loans.