In February, the Department of Defense (“DoD”) amended its interpretation of the Military Lending Act (“MLA”). The amendment should make it easier for many lenders to provide guaranteed asset protection (“GAP”) insurance or other credit insurance in connection with auto loans to covered servicemembers or their dependents. MLA and “Q&A #2” The MLA prohibits creditors from charging more than a 36 percent “military annual percentage rate” (“MAPR”) on credit transactions to covered persons. It also,… Continue Reading