WHAT IS THE MLA?

The Military Lending Act (MLA) is a Federal law that provides special protections for active duty servicemembers like capping interest rates on many loan products. This includes Pawnshops, like Ponders Loans. Here at Ponders, we are proud to offer this special financing rate on all loaned products from our QUALIFIED ACTIVE MILITARY AND THEIR DEPENDANTS. 

Your rights under the MLA include: 

• A 36% interest cap. You can’t be charged more than a 36% Military Annual Percentage Rate (MAPR), which includes costs like the following in calculating your interest rate (with some exceptions). With pawns, this gets calculated daily to keep you under the 36% annual mark : 
• Finance charges
• Fees like storage fees and firearms fees, with some exceptions. 

If a loan does not comply with the MLA, can a creditor not give me the loan because I am an active duty servicemember? 

Answer: Generally, yes. If the loan exceeds the 36% interest cap or if the loan violates other provisions of the MLA, creditors that give you the loan could be subject to penalties under the MLA. Contact your local Judge Advocate General’s (JAG) office to learn more about lending restrictions and your rights as a servicemember.