Military Lending Act Auto Loan Compliance
 

Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit.  In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent.  This rate must include, as applicable to the credit transaction or account:  

  • The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction;
  • Any application fee charged (other than certain application fees for specified credit transactions or accounts); and
  • Any participation fee charged (other than certain participation fees for a credit card account).

For active duty military personnel and their dependents, AUTOPAY and its lenders are compliant with MAPR guidelines pursuant to the Department of Defense Final Rule amendment to the Military Lending Act effective October 3, 2016.

A covered person is defined as:

An active duty Service member:

  1. Those under a call or order for 30+ days
  2. National Guard members pursuant to an order to full-time National Guard duty for a period of 180+ days
  3. Reserve members of the Army, Navy, Air Force, or Marine Corps serving on active duty for 30+ days

An active duty Service member dependent:

  1. A spouse
  2. A child under the age of 21
  3. A child under the age of 23 who is enrolled full time at an institution of higher learning approved by the administering Secretary, and who is (or was at the time of the active duty Service member’s death) a dependent of the Service member for more than one half of the of the child’s support
  4. Is incapable of self-support because of a physical or mental disability and is (or was at the time of the active duty Service member’s death) dependent on the active duty Service member for more than one half of the individual’s support
  5. An unmarried person that the Service member provided more than one half of the individual’s support for at least 180 consecutive days immediately preceding the extension of consumer credit

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