POWAY, Calif. — GAP provider Partners Alliance Corporation (PAC) announced the introduction of Military Annual Rate Calculator (MARC), a calculation solution designed to address the recent interpretive rule of the U.S. Department of Defense (DOD) issued on Dec. 15, 2017, under the Military Lending Act (MLA).

The MLA provides specific protections for active duty service members and their dependents in consumer credit transactions, including a 36% cap on the military annual percentage rate in covered transactions. The act also requires the disclosure of the MAPR in covered transactions. There are other disclosure requirements with which auto dealers can easily comply, said PAC President Jason Fletcher.

“PAC has always been responsive to the needs of its agents and their auto dealer clients,” Fletcher said. “With that in mind, we set out to provide a solution to calculate the MAPR in compliance with the DOD’s interpretation of the MLA.”

Fletcher said the calculation solution has been tested and ready for delivery to the auto dealer market and noted that Section 1026.22(a)(1) of Regulation Z provides a “safe harbor” to dealers and finance sources for an error in the annual percentage rate or finance charge that resulted from an error in a calculation tool used in good faith by the dealer or finance source. Interested parties can obtain a copy of PAC’s tool by contacting Fletcher via email.