The Department of Defense last week denied a request by ABA and several financial trade groups to postpone the effective date of the amended Military Lending Act rules for credit card accounts. The compliance date for those accounts is tomorrow.
In a joint comment letter earlier this year, ABA and the trade groups highlighted several inconsistencies between the MLA amendments and a subsequent interpretive rule issued by DoD. The groups recommended several changes to ensure that military servicemembers and their families continue to have access to affordable credit, in addition to requesting the compliance delay.
The Pentagon’s response indicated that a further interpretive rule addressing some of ABA’s concerns is forthcoming, but noted that certain issues “are not… likely to be addressed in any future guidance.” ABA has been highly engaged on this issue and will continue to provide feedback to DoD as it moves forward with the interpretive rule. View ABA’s MLA compliance resources. For more information, contact ABA’s Nessa Feddis.