Credit One Bank SCRA and MLA Credit Card Protections

Credit One Bank offers credit card protections under the Service Members Civil Relief Act (SCRA) and the Military Lending Act (MLA). Credit One Bank is a participant in these programs.

If you're a service member or a dependent, you may be eligible for these protections. Credit One Bank will not charge interest on your credit card balance while you're on active duty.

The SCRA and MLA protections also limit fees on your credit card account while you're on active duty. Credit One Bank will not charge fees such as late fees or over-limit fees.

You must notify Credit One Bank in writing to activate these protections.

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The Military Lending Act (MLA) is a federal law that protects military members against certain lending practices.

It limits the Military Annual Percentage Rate (MAPR) to 36% on a wide range of credit products, including interest, fees, and charges for debt cancellation and suspension.

If this caught your attention, see: Military Credit Card Debt Forgiveness

The MLA also requires creditors to disclose the MAPR in writing and orally, so you know exactly what you're getting into.

Creditors can't require you to submit to mandatory arbitration or give up your rights under state or federal laws, like the SCRA.

They can't make you create a military allotment, an automatic amount of money taken from your paycheck to pay back your loan.

And, if you repay part or all of your loan early, creditors can't charge a prepayment penalty.

To qualify for MLA benefits, the credit account must be established while you or your active duty sponsor are on active duty orders lasting more than 30 days.

Borrowers covered under MLA are defined as:

If you apply for the credit card account while you are on active duty orders, or if you are a Guard or Reservist on 30-day or greater active orders or a dependent of an active duty service member, you are eligible for Military Lending Act (MLA) benefits while you are on active orders or a dependent of someone on active orders.

You can determine if MLA benefits apply to you by checking if you open an account while you are on active duty.

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To qualify for MLA benefits, you must establish the credit account while you or your active duty sponsor are on active duty orders lasting more than 30 days.

The MLA applies to borrowers covered under the following categories:

This means if you're on active duty orders for more than 30 days, you can establish a credit account and qualify for MLA benefits.

The Military Lending Act (MLA) is a crucial regulation that protects active-duty service members, including National Guard soldiers and reservists on active-duty orders for 30 days or longer. It caps the cost of credit at 36% Military Annual Percentage Rate.

The MLA covers a wide range of credit products, including credit card debt, vehicle title loans, unsecured open lines of credit, refund anticipation loans, installment loans, and pawn loans. Loans to purchase or refinance a home are not covered under the MLA.

Interest, application fees, and credit insurance are all covered under the MLA. Lenders must disclose both orally and in writing that the Military Annual Percentage Rate is to be applied to the credit being offered, along with a clear description of payment terms.

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Lenders may not require your service member to waive their legal rights or to submit to arbitration. Lenders also cannot require repayment by military allotment.

Here are some key points to keep in mind about the MLA:

If you're a servicemember, you're likely eligible for SCRA benefits on your credit card accounts. Some credit card issuers go above and beyond the law to support servicemembers and their families.

You can check if you're eligible for MLA or SCRA benefits by looking up your account in the MLA or SCRA database. These databases are the same ones that credit card companies use to determine your eligibility.

To request SCRA benefits, you can contact Discover Card directly. They'll attempt to verify your active duty status by contacting the Defense Manpower Data Center (DMDC). If verified, no documentation is required, but they encourage you to submit additional information.

American Express also offers SCRA benefits, but you must enroll your card account in American Express Online Services to request relief online. If not enrolled, you can enroll your card now.

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To request SCRA benefits, you can contact American Express directly. They'll advise you of your status up to 2 billing cycles after you submit your request.

Here are some ways to request SCRA benefits from Discover and American Express:

Keep in mind that SCRA relief can only be requested on accounts opened prior to active military duty. If you've opened an account while on active duty, MLA coverage will be determined at the time of application.

Obtaining an Affidavit of Military Status can be a crucial step in protecting your rights as a servicemember.

The Consumer Finance Protection Bureau and the Department of Justice prioritize the protection of military personnel in active duty.

To get an Affidavit of Military Status, you can use the Servicemembers Civil Relief Act Centralized Verification Service, which can make the process easy.

Capital One is not the only lender that has faced consequences for failure to comply with the SCRA, highlighting the importance of obtaining this affidavit.

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The CFPB reached a landmark settlement against five leading mortgage servicers and lenders in the U.S. for illegally foreclosing on homes.

Pursuing loans against servicemembers is a technical process, and those who fail to obtain an affidavit of military service may find themselves in trouble.

You must obtain an affidavit of military service to avoid any issues with lenders.

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You can waive your rights under the SCRA, but it's essential to do so carefully. Only written waivers signed during or after a service member's period of military service are effective.

If you sign a waiver before entering military service, it will be considered invalid. This means it won't protect you or your rights.

Before signing any waiver, read the document carefully and seek advice from a qualified attorney. This will help you understand the implications and make an informed decision.

Only written waivers are recognized, so verbal agreements or unsigned documents won't suffice. Make sure you have a clear understanding of what you're signing.

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To take advantage of SCRA benefits with Credit One Bank, you'll need to be listed as eligible in the MLA or SCRA database.

Checking the MLA or SCRA database is the simplest way to determine if you'll receive SCRA protections on your account.

You can check your eligibility by visiting the MLA Database or SCRA Database.

If you're not listed as eligible, you won't receive MLA and SCRA benefits applied to your account.

To receive SCRA benefits, you must be listed as eligible in these databases.

Discover Card is one example of a credit card that offers SCRA benefits to eligible service members.

If eligible, Discover Card service members will receive an interest rate not exceeding 6% on debt incurred before active duty.

This benefit applies to most fees, for the duration of the service member's active duty.

To request SCRA benefits with Discover Card, you can click 'Request Benefits Now' when securely logging in to your account, or call 1-844-DFS-4MIL (1-844-337-4645).

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You can also submit documentation to support your claim, but it's not required if Discover can verify your active duty status with the Defense Manpower Data Center (DMDC).

If your account is enrolled in Discover Payment Protection, you may be eligible to pause your monthly payments, interest fees, late fees, and Payment Protection fees during your call to active duty.

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