What Pawn Brokers Need to Know About the Military Lending Act (MLA)


About the (MLA) Military Lending Act

The Military Lending Act is a law designed to grant special interest rates to Military members and their dependents. Dependents being (spouse, child, sibling, parent, etc.) The law limits the interest percentage that can be charged on a loan issued to an active Military member (or their dependents). The rate is capped to 36% APR. That’s 3% per month. The law will be enacted on October 3rd 2016. 


DMDC (Defense Manpower Data Center) is the portal that the Pawnbroker will use to verify active Military status: 

To verify status, the Pawnbroker must obtain the Military member’s social security number, last name, and birth date. If a dependent of a Military member happens to be the customer applying for a loan they will need to provide the social security number of the Military member, unless it has already been stored on file, as the DMDC will not have the dependent’s social security number in its data base. 


Here’s what PawnMaster plans to have in place while we work on a true integration partnership.

  • Direct URL link to the DMDC portal located on the customer profile screen.

The ability to switch rate tables to the MLA rate table upon re-writing to a new ticket for any loan that originated on the state defined rate table prior to MLA enactment.      


The process for verifying these customers in PawnMaster is as follows: