Resolve Your CashNetUSA Military Lending Act Violations Safely Today

This page may be especially relevant if any of these circumstances sound familiar:

• You opened a CashNetUSA account while serving on active duty.
• Your spouse was active duty when you obtained the credit.
• You were serving in the Guard or Reserves and were on qualifying active-duty orders at the time.
• You are now retired or separated but obtained the loan during active-duty service.
• You remember a high APR or significant fees.
• Payments were automatically withdrawn from your bank account.
• You renewed, refinanced, redrew, or repeatedly borrowed.
• Your loan documents included arbitration or other dispute provisions.
• The loan came from another payday lender rather than CashNetUSA.

None of these facts automatically means the law was violated. They are facts that may help determine whether the transaction should be examined more closely.

Why Active-Duty Status at the Time of the Loan Matters

Under the Department of Defense regulation implementing the MLA, covered-borrower status is determined when the consumer becomes obligated on a credit transaction or establishes an account for consumer credit. The regulation defines covered borrowers to include certain servicemembers serving on active duty or Active Guard and Reserve duty, as well as qualifying dependents.

For example, a person who is retired today may still have questions about a CashNetUSA loan opened while that person was a covered borrower. By the same token, being active duty today does not automatically bring an older loan made before covered status within the MLA.

Relevant dates can include:

• when you first opened the account;
• when the loan was made;
• when your active-duty service began or ended;
• whether you refinanced or renewed the credit;
• whether additional credit was extended later.

The exact analysis depends on the transaction and the borrower’s military status at the relevant time.

The Interest Rate Is Not the Only MLA Issue

The Military Lending Act addresses more than the cost of credit. Depending on the transaction, relevant protections may involve:

1. Required Loan Disclosures

For covered consumer credit, the MLA regulation requires certain disclosures, including a statement concerning the applicable MAPR, required Regulation Z disclosures, and a clear description of the borrower’s payment obligation.

2. Mandatory Arbitration

The MLA restricts creditors from requiring covered borrowers to submit disputes to arbitration. The statute and implementing regulation also address enforceability of arbitration agreements involving people who were covered borrowers when the agreement was made.

That means an arbitration provision in your CashNetUSA or payday-loan documents may be worth preserving and reviewing.

3. Military Allotments and Prepayment Penalties

The MLA also restricts creditors from requiring a military allotment as a condition of covered credit and prohibits penalties for prepaying covered consumer credit.

4. Bank Withdrawals and Electronic Payments

Automatic withdrawals require careful analysis. The MLA regulation restricts certain uses of access to a covered borrower’s bank account, but it also expressly allows a creditor, under specified conditions, to require an electronic fund transfer to repay a consumer credit transaction.

An automatic debit by itself therefore does not establish an MLA violation. The MAPR, loan terms, authorization, and other applicable laws may matter.

What About Military Spouses and Dependents?

The MLA can also protect qualifying dependents of covered servicemembers. CFPB guidance identifies spouses and certain other dependents among the people who may receive MLA protections.

If you obtained CashNetUSA credit while your spouse was serving on qualifying active duty, the dates and your dependent status may therefore matter.

Do not assume that being married to someone in the military automatically resolves the question. Coverage depends on the federal definitions and the facts at the time the credit was extended. military borrowers.

What If the Payday Loan Was Not From CashNetUSA?

CashNetUSA is the primary lender focus of this page, but the Military Lending Act is not a CashNetUSA-specific law.

If you received a payday loan from another lender while serving on active duty, the lender’s identity should still be recorded. Other important facts may include:

• the date of the loan;
• your military status on that date;
• the state where you lived;
• the type of credit;
• the APR and available MAPR information;
• fees and finance charges;
• payment history;
• renewal or refinancing activity;
• arbitration language;
• disclosures and other contract terms.

The CFPB lists payday loans among the types of consumer credit generally subject to the MLA, although coverage of any individual transaction depends on the facts and applicable exclusions.

Varnell & Warwick does not ask you to make that legal determination yourself. If the loan was from another payday lender, bring the lender information with you when discussing your situation.

MLA vs. SCRA: They Protect Different Situations

The Military Lending Act and Service Members Civil Relief Act should not be confused.

The MLA generally concerns covered consumer credit extended when a borrower has qualifying military status. Among other protections, it generally limits MAPR to 36% for covered consumer credit.

The SCRA can address different circumstances, including certain debts incurred before military service. For qualifying pre-service obligations, the SCRA provides a 6% interest-rate protection subject to statutory requirements.

If your CashNetUSA or other loan was obtained before you entered military service, the SCRA may raise different questions than the MLA.one determines whether the law was violated. Together, however, they can help show what needs closer review.

Don’t Let the Scammers Win

Ready to fight back? Tell Varnell & Warwick how CashNetUSA imposters targeted you, and let’s find out if a class action lawsuit can help recover your financial losses.