Thank you to everyone who reached out to us regarding their loans. Unfortunately, attorneys working with ClassAction.org have decided to close their investigation into this matter. If you have questions regarding your rights, please reach out to an attorney in your area or visit the website of the Consumer Financial Protection Bureau to learn more about the Military Lending Act and potentially receive assistance with your matter.
The information below was posted when the investigation began and exists for reference only. Our open list of investigations can be found here.
At A Glance
This Alert Affects:
Anyone who took out a loan within the last two years as an active duty military service member or their dependent, such as a spouse, child or dependent parent. Mortgage loans are not included for the purposes of this investigation.
What’s Going On?
A federal law known as the Military Lending Act requires lenders to provide certain benefits to members of the military and their families. Attorneys working with ClassAction.org are now investigating whether some lenders are violating this law and, if so, whether class action lawsuits can be filed.
What Could I Get in Return?
If your lender is violating the law, you may be able to file a lawsuit to have the loan voided and receive a full or partial refund of at least $500, plus additional damages.
Attorneys working with ClassAction.org would like to speak to to anyone who took out a loan – other than a mortgage loan – within the last two years as an active duty service member or their dependent.
They’re investigating whether certain lenders are violating a federal law known as the Military Lending Act, which provides certain protections and benefits to service members and their family, including a cap on interest rates.
Read on for more information about this investigation and how attorneys working with ClassAction.org may be able to help you and your family.
What’s the Military Lending Act?
The Military Lending Act is a federal law enacted in 2006 to protect active duty service members and their families from certain lending practices. Under the Act, military members and their dependents are entitled to lower interest rate caps, special disclosures and more beneficial loan terms than the average person.
For instance, with regard to interest rates, the Act states lenders cannot charge more than a 36% APR on several types of consumer loans.
It’s important to note that the APR includes not only interest charges, but also other costs such as application and participation fees, credit insurance premiums and finance charges.
The Act’s interest cap was intended to protect service members against, for instance, predatory lenders who started cropping up around military bases and charging excessive and illegal interest rates on short-term loans.
What Loans Are Covered by the Act?
The Military Lending Act covers the following credit products:
Vehicle title loans
Deposit advance products
Tax refund anticipation loans
Credit cards (effective October 3, 2017)
Certain student loans
Certain installment loans
Mortgage loans are not covered under the Military Lending Act.
Who’s Considered a Dependent under the Military Lending Act?
Dependents are covered under the Act and include:
Children under 21 (or 23 if they are in college)
How a Lawsuit Could Help
A successful lawsuit could allow borrowers to have their loans voided and receive a full or partial refund of at least $500, plus additional damages. Lenders could also be forced to change any illegal practices.