The Military Lending Act (MLA)
MLA is a federal law that provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit they obtain while they are serving on active duty.
To be eligible for MLA relief, the loan/account must be acquired on your consumer American Express account while on active duty. Relief is given to members of the Armed Forces and/or their dependents for the duration of active duty. No action is required from you for MLA relief. If you are eligible for MLA relief, it will be applied to your account without you having to request it. American Express determines eligibility based on data received from the Department of Defense at the time of application. Please ensure your information is up to date with the Department of Defense.
Relief provided by MLA:
In general, the MLA limits the cost of consumer credit to members of the Armed Forces and his or her dependents to an annual percentage rate that may not exceed 36%. This rate must include, as applicable: the costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; and any participation fee (other than certain participation fees for a credit card account).
If your Consumer account is eligible for MLA relief, the relief will be applied immediately to your account when it is opened and you will receive notification through your Card Member Agreement. Please refer to your Card Member Agreement to determine if you have been identified as a “covered borrower” and entitled to MLA relief.
Who is eligible for MLA relief:
The following parties are eligible to receive relief through the Military Lending Act:
- A regular or reserve member of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving on active duty under a call or order that does not specify a period of 30 days or less, or such a member serving on Active Guard and Reserve duty as that term is defined in 10 U.S.C. 101(d)(6)
- Spouse or child of an Active Duty member of Armed Forces defined in 38 USC 101(4)
- An individual for whom the member of the Armed Forces provides more than one-half of the individual's support for 180 days immediately preceding an extension of consumer credit covered by 32 C.F.R. Part 232.