Military Lending Act
Also known as: MLA, 36% MAPR cap, military borrower protection
The Military Lending Act (MLA) is a federal law that caps the Military Annual Percentage Rate (MAPR) at 36% on most consumer loans made to active-duty service members, their spouses, and covered dependents. It also prohibits prepayment penalties, mandatory arbitration, and waivers of legal rights for covered borrowers.
Full definition
The Military Lending Act was enacted in 2006 and significantly expanded by Department of Defense regulations in 2015 to cover nearly all consumer credit products offered to active-duty service members and their dependents. Who is covered: Active duty military personnel (Army, Navy, Marine Corps, Air Force, Space Force, Coast Guard), activated National Guard and Reserve members, and their spouses, children, and certain other dependents as defined by the MLA. The 36% MAPR cap: The MLA's central protection is a 36% Military Annual Percentage Rate ceiling. MAPR is broader than regular APR under TILA. It includes not only interest but also credit insurance premiums, debt suspension fees, fees for credit-related ancillary products sold in connection with the loan, and finance charges. This calculation is designed to capture all-in cost so that lenders cannot circumvent the cap by shifting costs to fees. Products covered: The 2015 expansion covers payday loans, deposit advance products, installment loans, unsecured open-end lines of credit, credit cards (as of 2017), and personal loans. Excluded products: residential mortgages, vehicle purchase loans, personal property purchase loans. Prohibited practices: Lenders covered by the MLA may not require arbitration (mandatory class-action waiver), require the borrower to waive legal rights, require allotment of pay as a condition of the loan, charge a prepayment penalty, or roll over the loan into a new transaction (for some product types). Database check: Lenders must check the DoD's MLA database (or use a consumer report that includes MLA status) to determine if a borrower is a covered borrower before extending credit. Failure to properly identify a covered borrower does not relieve the lender of MLA obligations. Enforcement: Violation of the MLA makes the loan contract void from inception. Covered borrowers may also recover damages in court. The CFPB and DoD both have enforcement authority.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- June 15, 2026
- TILA (Truth in Lending Act)The federal law that requires lenders to disclose loan terms, APR, fees, and the schedule of payments before a borrower signs.
- FCRA (Fair Credit Reporting Act)The federal law that governs credit reports and credit-bureau practices, including your right to a free annual report and to dispute errors.
- ECOA (Equal Credit Opportunity Act)The federal law that prohibits lender discrimination based on race, religion, sex, marital status, age, national origin, or receipt of public assistance.
- MLA (Military Lending Act)Federal law capping consumer-credit APRs to active-duty service members and their dependents at 36% (the Military APR, or MAPR).
- CFPB (Consumer Financial Protection Bureau)The federal agency that supervises and enforces consumer financial-protection laws across most U.S. lenders.
- TCPA (Telephone Consumer Protection Act)The federal law governing telemarketing calls and texts, including the prior-express-written-consent requirement for autodialed marketing.
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