Regulatory Alerts2025-01-01
Department of Defense Regulations: Limitations on Terms of Consumer Credit Extended to Service Members and Dependents
The Department of Defense issued 32 C.F.R. Part 232 to implement 10 U.S.C. 987 by imposing strict limitations on the cost and terms of consumer credit extended to service members and their dependents. The regulation mandates a 36 percent cap on the Military Annual Percentage Rate and requires creditors to provide specific disclosures before a borrower becomes obligated on a transaction. It defines covered borrowers, outlines calculation methods for the MAPR, and establishes penalties and enforcement mechanisms for non-compliance.
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