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CUNA Relates MLA Concerns to DOD, Federal Regulators
Friday, February 3, 2017 6:35 AM

Credit Union National Association and other financial services organizations met Wednesday with the Department of Defense (DOD) and other federal financial regulatory agencies to reiterate numerous concerns with the Military Lending Act (MLA). The DOD made changes to the MLA that became effective last year, changes that establish limitations on terms of consumer credit extended to servicemembers.

During Wednesday’s meeting, CUNA discussed:

  • Supplementary information’s inaccurate calculation of military annual percentage rate for open-end loans;
  • Limits on fees during periods where there is no balance;
  • Exemption of purchase money loans;
  • Prohibition against liquid (share) secured loans;
  • Right of offset/statutory liens;
  • Use of remotely created checks for payment;
  • Method of providing oral disclosures; and
  • Issues with the upcoming credit card requirements set to become effective Oct. 3.

Agencies present at the meeting include NCUA, Consumer Financial Protection Bureau, Federal Trade Commission, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, and Federal Reserve Board.

The agencies were open to hearing the challenges arising under the MLA and the upcoming credit card regulatory deadline. While they did not commit to any solutions at the meeting, all agencies indicated their willingness to find solutions and work with industry on the implementation issues.