OnCourse Learning is offering a new Military Lending Act course geared toward informing bank and credit union employees about the expanded MLA requirements and helping institutions mitigate risk to their businesses for non-compliance.
“As of Oct. 3, 2016, financial institutions were required to be compliant with the July 2015 final rule that expanded the breadth of coverage to a broader range of closed-end and open-end credit products,” said Jeff Kelly, vice president of governance, risk & compliance at OnCourse Learning. “Our new MLA course provides education for staff and peace of mind for business compliance officers who know staff has been effectively trained on the new requirements.”
The course topics include the following:
• Understanding general requirements of the MLA.
• Determining covered borrowers, such as military borrowers, who include active service duty members and their dependents.
• Identifying covered transactions, such as: non-mortgage related consumer; open-end; closed-end; and credit transactions.
• Verifying whether covered borrowers qualify.
• Realizing limitations and restrictions set by the MLA.
• Understanding possible penalties and civil enforcement to mitigate risk.
To learn more about the course, click here.
In July 2015, the Department of Defense issued a final rule expanding certain consumer credit protections under the Military Lending Act. Those protections extend to active-duty service members, including those on active Guard or Reserve duty, and covered dependents.
Under the new requirements, creditors cannot charge service members or their covered dependents more than a 36% Military Annual Percentage Rate, which covers interest on the loan and most fees, according to a Sept. 30 news release by the Consumer Financial Protection Bureau. Creditors also cannot require service members or their dependents to submit to mandatory arbitration or give up certain other legal rights, nor can service members be required to create a voluntary military allotment to qualify for a loan, the release said.