NASCUS to Talk with DoD On Lending Rule Implementation
ARLINGTON, Va. -- NASCUS planned to host a conference call to discuss implementation of the military lending rule with the Department of Defense.
NASCUS invited state regulators to join the call Sept. 13.
The DoD issued its final rule Aug. 31 that establishes a new Military Annual Percentage Rate of 36% on closed-end credit concerning payday loans, vehicle title loans, and tax refund anticipation loans. Unlike the Federal Reserve's APR under Truth in Lending, the MAPR includes credit related, voluntary insurance products, which credit unions had opposed. Overall though, the credit union community generally said the final rule, which was very similar to the proposal, was workable and most credit unions would not be affected anyway because their products do not fit within the narrow definitions of the products in the new reg.
The final rule, required under the John Warner National Defense Reauthor-
ization Act for Fiscal Year 2007, takes effect Oct. 1.