Examining the Military Lending Act and Servicemembers Civil Service Relief Act

With National Military Appreciation Month underway, the Military Lending Act (MLA) and Servicemembers Civil Relief Act (SCRA) are the focus of the latest Compliance 101 guide. With distinct differences between the two laws, America’s Credit Unions’ Compliance Team addresses key definitions and the scope of both, including a table comparing the two and links to official NCUA and Department of Defense (DoD) resources.

Both the MLA and SCRA are designed to protect U.S. servicemembers from financial hardship, especially related to lending and debt.
 
The MLA protects active-duty members of the military, their spouses, and their dependents from particular lending practices. The DoD’s implementing regulation contains limitations on and requirements for certain types of consumer credit extended to covered borrowers, including active-duty service members and their spouses, children, and other defined dependents. 

The SCRA also protects active duty servicemembers and sometimes their family. While MLA protections deal with loan costs and requirements, SCRA protections extend past the terms of a loan and help shield active duty servicemembers from default judgment, foreclosure, and repossession. 

The Compliance 101 entry is available, along with all others in the series, to America’s Credit Unions members in the Compliance Library.

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