Many service members search “can active duty military get payday loans” when cash runs short. The answer turns on three things, which are the lender, the type of loan and the Military Lending Act (MLA). Each one shapes the rules for a loan made to someone in uniform.
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How the MLA Works
The MLA protects people it calls covered borrowers. That group is mainly active-duty members and their eligible family members. For covered credit, the law caps the Military Annual Percentage Rate (MAPR) at 36%, and the MAPR is not the same as a normal APR, since it can count some fees and other charges. The law also limits some loan terms, such as some forced arbitration clauses. Covered status is judged on the day the borrower signs and becomes bound by the loan.
Where CashNetUSA Fits
CashNetUSA is an online loan brand of Enova International. A 2023 order from the Consumer Financial Protection Bureau (CFPB) says Enova offers installment loans and lines of credit through CashNetUSA, and it offered payday loans through the brand until 2022. A 2013 CFPB order also described loans Enova made to active-duty members or family members before December 2012, and the order said these came partly from systems errors.
What These Facts Mean
These facts do not answer questions about any one person’s loan. They show why the type of loan and the borrower’s duty status on the signing date matter, so both are worth checking in the loan papers.
The Records That Help
The loan agreement shows the signing date, the costs and the arbitration terms. Orders or separation papers show the duty dates, and account statements show each payment, so together they give a clear view of the loan. Relief societies and base money counselors can also help before a service member takes on costly credit.
Military borrowers with questions about a CashNetUSA loan can ask for a no-cost consultation with Varnell & Warwick, a Tampa consumer protection law firm. This article is general information, not legal advice.
