Defense revises Military Lending Act interpretive rule

The Department of Defense has published [85 FR 11842] in this morning's Federal Register an amendment to its interpretive rule for the Military Lending Act (the MLA). The Department is withdrawing the amended question and answer number 2, published in its December 14, 2017, Interpretive Rule, which discussed when credit is extended for the purpose of purchasing a motor vehicle or personal property and the creditor simultaneously extends credit in an amount greater than the purchase price of the motor vehicle or personal property. In withdrawing this amended question and answer, the Department is reverting back to the original Q&A #2 published in the August 26, 2016 Interpretive Rule. This will allow the Department to conduct additional analysis on this matter. The Department is also adding a new question and answer to address questions about the use of Individual Taxpayer Identification Numbers to identify covered borrowers in the Department's database.

The amendments are effective February 28, 2020. They have been posted to the BankersOnline Regulations page for the Interpretive Rule.