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Can you summarize 32 CFR Part 232?
MISCELLANEOUS > LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO SERVICE MEMBERS AND DEPENDENTS
Short Summary
This legal document, part of the Code of Federal Regulations, implements 10 U.S.C. 987 and imposes limitations on the cost and terms of certain extensions of credit to Service members and their dependents. It applies to creditors who provide consumer credit to covered borrowers. The document defines key terms such as consumer credit, creditor, covered borrower, and military annual percentage rate (MAPR). It specifies the maximum allowable amount of charges and the types of charges associated with a covered extension of consumer credit. The document also requires creditors to provide a statement of the MAPR to covered borrowers before or at the time they become obligated on the transaction or establish an account for the consumer credit. It further outlines the method for calculating the MAPR and contains other criteria and limitations determined appropriate by the Secretary of Defense. The document provides examples to illustrate the applicability of the regulations and clarifies that it does not apply to credit transactions or accounts of consumers who are not covered borrowers. It also sets forth the requirements for mandatory loan disclosures for covered borrowers, including the statement of the MAPR, any disclosure required by Regulation Z, and a clear description of the payment obligation. The document preempts any State or Federal law, rule, or regulation that is inconsistent with it and ensures that covered borrowers receive at least the same level of protection as residents of the State. It prohibits different treatment of covered borrowers under State law based on their nonresident or military status. The document also addresses the limitations on the terms of consumer credit, including the prohibition of rolling over, renewing, repaying, refinancing, or consolidating consumer credit, and the prohibition of requiring covered borrowers to waive their right to legal recourse or submit to arbitration. It further prohibits unreasonable notice requirements, the use of a check or other method of access to a financial account, and the use of a vehicle title as security for the obligation. The document also prohibits requiring covered borrowers to establish an allotment to repay the obligation and prohibits prepayment penalties. It provides exemptions for certain refinancing or renewing transactions and for persons chartered or licensed as banks, savings associations, or credit unions. The document specifies the enforcement of the regulations and the civil liability and remedies for violations. Overall, this document aims to protect service members and their dependents from unfair or abusive consumer credit practices.
Whom does it apply to?
Creditors who provide consumer credit to covered borrowers
What does it govern?
Limitations on the cost and terms of certain extensions of credit to Service members and their dependents
What are exemptions?
Credit transactions or accounts of consumers who are not covered borrowers at the time of obligation or account establishment, or when the consumer is no longer a covered borrower
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
U.S. Federal Government