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#2220674 - 08/29/19 03:23 PM MLA and SCRA
mdog76 Offline
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Joined: Jan 2007
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Looking for help on distinguishing the difference between the two:

MLA - must be determined before the loan is made and can't have an APR greater than 36%

SCRA - enacted if someone is called into duty and has existing obligations and can request that those obligations be lowered to 6% rate

Short and sweet but do I have the basic premise of the two?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2220678 - 08/29/19 03:29 PM Re: MLA and SCRA mdog76
Skittles Online
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MLA - the MAPR (Military Annual Percentage Rate) cannot be greater than 36%. There are a few different fees that are included in the MAPR over the APR (i.e. credit life insurance).
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#2220730 - 08/30/19 12:21 PM Re: MLA and SCRA mdog76
Adam Witmer Offline
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mdog76, I think you have a good basic summary of the two. MLA applies to active duty servicemembers at the time of origination while SCRA applies to credit that was obtained before active duty.
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#2220799 - 08/30/19 08:52 PM Re: MLA and SCRA mdog76
Andy_Z Offline
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For clarity, the MLA includes dependents and the SCRA has many more components than just the 6% rate cap on preservice loans, but with tweaking your general concept is correct.
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