Military Lending Act (MLA) NCUA Q&A – GAP, Warranty, Payment Protection

Compliance > Lending > Service Members > Military Lending Act
Q:  Now, with regard to what else goes into the MAPR calculation, will the charges for gap coverage, vehicle warranty, and payment protection be included in the MAPR calculation?
 
A:   Under Section 232.4(c), charges for all credit protection products, such as gap coverage and payment protection, are included in the MAPR as applicable to the extension of credit.  In addition, the same section states that the cost for ancillary products, such as a warranty sold in connection with the credit transactions must also be included in the MAPR.
 
 
 
 
ADDITIONAL INFORMATION – This Q&A was included in the NCUA’s June 2016 webinar entitled “Preparing to Comply with Regulatory Changes under the Military Lending Act.”  To listen to the audio and view the slides, interested parties may find that information here:  https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=1186523&sessionid=1&key=72023B4705907CDD0D194100B89E5D11&sourcepage=register
 

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