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II
116TH CONGRESS
2D SESSION
S. 3560
To amend the Truth in Lending Act to extend the consumer credit protections
provided to members of the Armed Forces and their dependents under
title 10, United States Code, to all consumers.
IN THE SENATE OF THE UNITED STATES
MARCH 22, 2020
Mr. VAN HOLLEN (for himself and Mr. BROWN) introduced the following bill;
which was read twice and referred to the Committee on Banking, Hous-
ing, and Urban Affairs
A BILL
To amend the Truth in Lending Act to extend the consumer
credit protections provided to members of the Armed
Forces and their dependents under title 10, United
States Code, to all consumers.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Small Business and
4
Consumer Emergency Credit Act’’.
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SEC. 2. LIMITATIONS ON CONSUMER CREDIT AND MAX-
1
IMUM RATES OF INTEREST.
2
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
3
ing Act (15 U.S.C. 1631 et seq.) is amended by adding
4
at the end the following:
5
‘‘§ 140B. Limitations on consumer, small business,
6
and nonprofit maximum rates of interest
7
during national emergencies
8
‘‘(a) DEFINITIONS.—In this section, the term ‘con-
9
sumer credit’ includes consumer credit and credit extended
10
to—
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‘‘(1) an organization that is described in section
12
501(c)(3) of the Internal Revenue Code of 1986 and
13
exempt from tax under section 501(a) of such Code;
14
and
15
‘‘(2) a small business concern, as defined in
16
section 3 of the Small Business Act (15 U.S.C.
17
632).
18
‘‘(b) APPLICATION
OF
THE MILITARY LENDING
19
ACT.—
20
‘‘(1) CORONAVIRUS
DISEASE
2019
(COVID–19)
21
NATIONAL
EMERGENCY.—The annual percentage
22
rate of interest described in section 987(b) of title
23
10, United States Code (commonly referred to as
24
the ‘Military Lending Act’), shall be applicable
25
under this section for any extension of consumer
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credit made during the period beginning 1 day after
1
the date of enactment of this section and ending on
2
the date on which the national emergency declared
3
by the President under the National Emergencies
4
Act (50 U.S.C. 1601 et seq.) with respect to the
5
coronavirus disease 2019 (COVID–19) terminates.
6
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
7
apply to credit extended by a Federal credit union,
8
as defined in section 101 of the Federal Credit
9
Union Act (12 U.S.C. 1752), subject to the limita-
10
tion on rate of interest described in section
11
107(5)(A)(vi)
of
that
Act
(12
U.S.C.
12
1757(5)(A)(vi)), as implemented by the National
13
Credit Union Administration Board, or to a State
14
credit union that complies with that limitation.
15
‘‘(c) NO EXEMPTIONS PERMITTED.—The exemption
16
authority of the Bureau under section 105(f) shall not
17
apply with respect to this section.
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‘‘(d) CALCULATION OF THE ANNUAL PERCENTAGE
19
RATE FOR OPEN END CREDIT.—
20
‘‘(1) IN GENERAL.—For purposes of this sec-
21
tion, the annual percentage rate applicable to an
22
open end credit plan shall be calculated under sec-
23
tion 107(a)(2), subject to adjustments to the
24
amount considered a finance charge, as provided in
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the rules issued by the Secretary of Defense on July
1
22, 2015, to carry out section 987 of title 10,
2
United States Code.
3
‘‘(2) EXCEPTION
TO
FINANCE
CHARGE
CAL-
4
CULATION.—
5
‘‘(A) IN GENERAL.—Notwithstanding para-
6
graph (1), for consumer credit extended in a
7
credit card account under an open end con-
8
sumer credit plan, a bona fide fee other than a
9
periodic rate is not a charge required to be in-
10
cluded within the finance charge for purposes of
11
this section if the fee, including any fee charged
12
before the account is opened or during the 1-
13
year period beginning on the date on which the
14
account is opened, is assessed in compliance
15
with section 127(n).
16
‘‘(B)
LIMITATION.—Subparagraph
(A)
17
shall not apply to—
18
‘‘(i) any credit insurance premium or
19
fee, including any charge for single pre-
20
mium credit insurance, any fee for a debt
21
cancellation contract, or any fee for a debt
22
suspension agreement; or
23
‘‘(ii) any fee for a credit-related ancil-
24
lary product sold in connection with the
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credit card account under an open end
1
consumer credit plan.
2
‘‘(e) CALCULATION OF THE ANNUAL PERCENTAGE
3
RATE FOR CLOSED-END CREDIT.—For purposes of this
4
section, the annual percentage rate applicable to credit not
5
under an open end credit plan shall be calculated under
6
section 107(a)(1), subject to adjustments to the amount
7
considered a finance charge, as provided in the rules
8
issued by the Secretary of Defense on July 22, 2015, to
9
carry out section 987 of title 10, United States Code.
10
‘‘(f) RELATION TO STATE LAW.—Nothing in this sec-
11
tion may be construed to preempt any provision of State
12
law that provides greater protection to consumers than is
13
provided under this section.
14
‘‘(g) PENALTIES AND REMEDIES.—In addition to the
15
penalties and remedies in this Act, section 987(f) of title
16
10, United States Code, shall apply to a creditor who ex-
17
tends consumer credit to a consumer in violation of this
18
section to the same extent as such section 987(f) applies
19
to a creditor who extends consumer credit to a covered
20
member or a dependent with respect to a covered member
21
(as those terms are defined in such section 987).
22
‘‘(h) PRESERVATION OF STATE ENFORCEMENT.—
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‘‘(1) STATE ATTORNEYS GENERAL.—Not later
24
than 3 years after the date on which a violation of
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this section occurs, the attorney general of a State
1
(or an equivalent official) may bring a civil action in
2
the name of that State—
3
‘‘(A) in any district court of the United
4
States that is located in that State or in a
5
State court that is located in that State and
6
that has jurisdiction over the defendant; and
7
‘‘(B) to—
8
‘‘(i) enforce provisions of this section
9
or rules issued under this section; and
10
‘‘(ii) secure remedies under provisions
11
of this section or remedies otherwise pro-
12
vided under other law.
13
‘‘(2) STATE REGULATORS.—Not later than 3
14
years after the date on which a violation of this sec-
15
tion occurs, a State regulator may bring a civil ac-
16
tion or initiate another appropriate proceeding to—
17
‘‘(A) enforce the provisions of this section
18
or regulations issued under this section with re-
19
spect to any entity that is, or is required to be,
20
State-chartered, incorporated, licensed, or oth-
21
erwise authorized to do business under State
22
law; and
23
‘‘(B) secure remedies under provisions of
24
this section or remedies otherwise provided
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under other provisions of law with respect to an
1
entity described in subparagraph (A).
2
‘‘(3) NOTICE REQUIREMENT; ADDITIONAL REG-
3
ULATIONS.—Subsections (b), (c), and (d) of section
4
1042 of the Consumer Financial Protection Act of
5
2010 (12 U.S.C. 5552), shall apply to a civil action
6
or other appropriate proceeding brought or initiated
7
under paragraph (1) or (2) to the same extent as
8
those subsections apply to actions and other admin-
9
istrative and regulatory proceedings described in
10
subsection (a) of such section 1042.’’.
11
(b) CLERICAL AMENDMENT.—The table of contents
12
for chapter 2 of the Truth in Lending Act is amended
13
by adding at the end the following:
14
‘‘140B. Limitations on consumer, small business, and nonprofit maximum rates
of interest during national emergencies.’’.
Æ
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