The Military Lending Act (MLA)
The Military Lending Act, also known as MLA, is a federal law enacted in 2006 that protects active military members, their spouses, and dependents from certain lending practices. These lending practices could present risks for service members and their families. Service members’ military readiness and member retention can also be affected negatively without the MLA.
The MLA consists of limitations on and requirements for certain types of consumer credit. Consumer credit is a credit that is offered or extended for personal, family, or household purposes, and that is:
- Subject to a finance charge
- Payable by a written arrangement in more than four installments