ARLINGTON, Va. — NAFCU announced last week it is seeking comments from its members in preparation for a comment letter the group intends to submit on the Department of Defense's recent authority to cap interest rates on loans to military personnel.

"The Department of Defense has asked us to comment on how they should go about drafting rules for the bill. It's likely that there are a number of technical issues that the Department of Defense has to address in order to ensure the new regulation meshes with existing regulations, in particular, Truth in Lending," NAFCU Senior Counsel and Director of Regulatory Affairs Carrie Hunt said.

Before Congress left for elections, a bill was passed that would cap loans to military personnel at 36%. However, NAFCU and the banking trades have expressed concerns that the law is not in line with existing definitions under Truth in Lending. NCUA and the banking regulators must be consulted in drafting the impending regulation.