Military Lending Act (MLA) NCUA Q&A – Non-Consumer Loan

Compliance > Lending > Service Members > Military Lending Act
Q:  Another basic question about coverage in the notion of what does a “non-consumer” loan mean?
A:   Consumer loans under the MLA are those primarily for personal, family, or household purposes.  TILA contains an exclusion for credit that is not for consumer purposes.  That includes extensions of credit primarily for business, commercial, or agricultural purposes, to government or governmental agencies or instrumentalities, or to organizations.  Because the MLA regulation excludes most of the same credit TILA excludes, these non-consumer loans are not subject to the MLA.
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:

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