Skip Ribbon Commands
Skip to main content
SharePoint

The Defense Department on Tuesday issued the final rule of the Military Lending Act, a move intended to protect service members from predatory lending practices, said President Barack Obama during a speech at the 116th Veterans of Foreign Wars National Convention​ in Pittsburgh, Pa. The “final rule” covers all forms of payday loans, vehicle title loans, refund anticipation loans, deposit advanced loans, installment loans, unsecured open-end lines of credit, and credit cards, according to July 21 DOD release. “There’s already a lot to protect our troops and families against unscrupulous predatory lenders, but some of the worst abusers—like payday lenders—are exploiting loopholes to trap our troops in a vicious cycle of crushing debt,” said Obama. The new rule goes into effect on Oct. 1 and will have staggered compliance dates, according to a separate DOD release. The announcement closes out a three-year study conducted by DOD, the Department of Treasury, the Federal Trade Commission, and financial regulators. “This new rule addresses a range of credit products that previously escaped the scope of the regulation, compromising the financial readiness of our troops,” said Deputy Defense Secretary Bob Work. (Obama transcript.)