The Department of Defense's (DoD) proposed rule to revise and expand the coverage of its rule implementing the Military Lending Act (MLA) may be put on hold.

The House Committee on Armed Services Subcommittee for Military Personnel recently released a proposal for the Fiscal Year 2016 National Defense Authorization Act (NDAA) that includes a provision requiring the DoD to provide a report answering questions concerning whether the proposed expansion (described in our prior legal alert here), is necessary, and further, whether the DoD is prepared to provide reliable data to lenders concerning a borrower's military status.

While commending the DoD's efforts to protect service members against predatory lending practices, the Subcommittee is concerned with the current rulemaking and whether it is justified from a military-readiness perspective. Accordingly, its draft NDAA directs the Secretary of Defense to provide a report by March 1, 2016, to the Committee on Armed Services of the Senate and the House of Representatives concerning any rulemaking regarding the MLA. The proposed report is to include:

  • a summary of comments on the proposed DoD rule;
  • an assessment of the impact on military readiness, if any, resulting from service member access to financial products, including payday loans, vehicle title loans, bank deposit advances, and installment loans, since the implementation of the MLA in 2007; and
  • an assessment of the adequacy of staffing levels at the Defense Manpower Data Center and the accuracy, integrity, and reliability of its database.

The draft NDAA, which the Subcommittee marked up and passed without amendment April 23, would prohibit any final rule regarding the MLA from taking effect until 60 days after the Secretary of Defense transmits the report.

A House vote on the NDAA is currently scheduled for May 15 and a full House Armed Services Committee markup scheduled for April 29. 

Ballard Spahr’s Consumer Financial Services Group is nationally recognized for its guidance in structuring and documenting new consumer financial services products, its experience with the full range of federal and state consumer credit laws, and its skill in litigation defense and avoidance. For more information, please contact CFS Practice Leader Alan S. Kaplinsky at 215.864.8544 or, John L. Culhane, Jr., at 215.864.8535 or, or Anthony C. Kaye at 801.531.3069 or

Copyright © 2015 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.

Related Practice

Consumer Financial Services


Visit CFPB Monitor, our blog on the Consumer Financial Protection Bureau >

Subscribe to the blog via e-mail >