Because of recent changes in federal law and some states that restrict payday loan fees for military service members and their dependents, some payday lenders may opt not to make loans to service members and their dependents. Also, lenders are subject to the Military Lending Act (MLA) — a law intended to prevent lenders from gouging military personnel with exorbitant interest rates and fees that come with payday loans, tax refund anticipation loans, and car title loans. Active-duty military members and military spouses are protected under this act which requires: A 36% cap on interest rates. This cap is on interest rates on loans with terms under three months. While still high, a 36% interest rate is far more reasonable than the three-digit APRs that can come with some short-term loans. No mandatory waivers of consumer protection laws. A lender can’t require you to submit to mandatory arbitration or ask you to give up your rights under state or federal laws, as they can with the public. No mandatory allotments. A lender can’t make you agree to a voluntary military allotment — or automatic repayments from your paycheck — for loan approval. No prepayment penalty. A lender can’t charge you a fee or other penalty if you find yourself able to pay back your loan before the end of your terms.