MLA Deadline for Credit Cards Is Effective Now!
By now, MLA requirements have been implemented for non-credit card forms of lending like payday loans, title loans, secured lending, open-end lending, and installment loans. The deadline was October 2016. Credit card vendors were given an extra year due to the many changes needed to meet new requirement guidelines. The new deadline is effective now. By October 2017, all changes were due to be made.
Good MLA News If You Are an Oak Tree Customer
This means new disclosures must be given. The good news for Oak Tree customers is these disclosure changes have already been made and are included in your consumer lending forms package. It’s part of our ongoing commitment to compliance. We take it seriously, so you can serve your members with confidence.
The MLA is taking the deadline seriously, too. There could be penalties and fines if the deadline isn’t met. Of course, as with all compliance issues, you must be caught first. Why take a chance, though? If you have questions about your credit card forms and disclosures as to how they relate to MAPR, give us a call. We can help your credit union.
The Heart of the MLA
Remember, the MLA at its heart is a decent piece of legislation. It was designed to keep military families safe from predatory lenders. They already sacrifice so much. There is no need to stack financial damage on top of the demands already placed on these families. Their work keeps us safe from all threats, foreign and domestic. The MLA keeps its finances safe by:
- Capping MAPR at 36% (this is an all-inclusive capture rate)
- Restricting access to payday loans
- Restricting access to title loans
- Not accepting postdated checks
- Release from mandatory arbitration
- Allowed to keep their Service Members’ Civil Relief Rights
The MLA is designed to cuff lending entities that might wreak havoc on military family finances. October will be here before you know it, and by then, it will be too late. Consumer lending and compliance at your credit union is key. If you are not our customer, have questions and value the military like we do, make sure your forms are compliant.
Besides being a way to honor them for their service, it will keep you out of hot water should an examiner from the CFPB, NCUA, or DFI walk through your doors. If you have any questions, give us a call at (800) 537-9598 or email us at ClientServices@OakTreeBiz.com. We can make sure your credit disclosures are compliant well before the deadline. Compliance is not an option – it is mandatory for your credit union. All you have to do is make a switch!