Other names for this bill...
The section of the bill known as the Military Lending Act is referred to by its acronym - MLA.
Bill Summary
This bill authorized spending on the military for fiscal year 2006.
Provisions referenced by News in FiVe are explained below.
Military Lending Act
This section of the bill - referred to as the Military Lending Act - protects members of the Armed Forces from predatory lending practices.
Among its protections....
o A lender cannot impose an interest rate greater than 36 percent
o The lending cannot impose a penalty for fee for early repayment of the loan.
o Loans that roll over or renew (such as payday loans) are prohibited.
o A lender cannot require that disputes be resolved through arbitration.
o The lending cannot impose a penalty for fee for early repayment of the loan.
o Loans that roll over or renew (such as payday loans) are prohibited.
o A lender cannot require that disputes be resolved through arbitration.
Click here to read this portion (Sec 670) of the bill.
For background on the bill, read this Center for Responsible Lending summary.