Armed service members: consumer loans.

(1) Existing federal law, the Military Lending Act, prohibits a creditor who extends consumer credit to a covered member of the Armed Forces or a dependent of such a member from requiring that member or dependent to pay interest with respect to the extension of such credit, unless an exception to that rule applies. The federal act also requires a creditor to satisfy other terms and conditions before extending consumer credit to a covered member, and to comply with mandatory disclosure requirements, as specified. Any person who violates the federal act is subject to both criminal and civil penalties.