Military Lending Act (MLA)
The Military Lending Act (or MLA) protects military personnel and covered dependents from certain lending practices. This directly affects auto dealerships as “covered borrowers”; effective APR cannot exceed 36% when GAP, Service Contract, and Credit Insurance are included. ProMax offers an all-in-one solution to help your dealership remain compliant with MLA.
Learn all about the Military Lending Act: what it is, how it affects your dealership, and how the ProMax solution seamlessly keeps you compliant.
- The MLA Compliance Solution works regardless of credit bureau pulled (TransUnion, Equifax, or Experian)
- MLA status can be seen on the customer’s credit bureau and in the note section of the Customer Workscreen
- MLA covered borrowers are further flagged within the Customer Workscreen, Prospect Log, and Compliance Review Report
- For MLA covered borrowers, users receive a pop-up warning within the Desking screen if the effective APR exceeds the maximum allowed of 36%