To require a report on predatory lending directed at members of the Armed Forces and their dependents.

1. Adds SEC. 596. REPORT ON PREDATORY LENDING PRACTICES DIRECTED AT MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS at the end of subtitle H of title V

   Adds a section

   In S. 1042 · Placed on Calendar Senate

   (b) Effective Date.--The amendment made by subsection (a) shall take effect on October 1, 2005.

   Inserted: SEC. 596. REPORT ON PREDATORY LENDING PRACTICES DIRECTED AT MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS.

   Inserted: (a) Findings.--The Senate makes the following findings:

   Inserted: (1) Predatory lending practices harm members of the Armed Forces and are an increasing problem for the Armed Forces.

   Inserted: (2) Predatory lending practices not only hurt the financial security of the members of the Armed Forces but, according to the Under Secretary of Defense for Personnel and Readiness, also threaten the operational readiness of the Armed Forces.

   Inserted: (3) The General Accountability Office found in an April 2005 report that the Department of Defense was not fully utilizing tools available to the Department to curb the predatory lending practices directed at members of the Armed Forces.

   Inserted: (b) Sense of Senate.--It is the sense of the Senate that--

   Inserted: (1) the Department of Defense should work with financial service regulators to protect the members of the Armed Forces from predatory lending practices; and

   Inserted: (2) the Senate should consider and adopt legislation--

   Inserted: (A) to strengthen disclosure, education, and other protections for members of the Armed Forces regarding predatory lending practices; and

   Inserted: (B) to ensure greater cooperation between financial services regulators and the Department of Defense on the protection of members of the Armed Forces from predatory lending practices.

   Inserted: (c) Report.--

   Inserted: (1) Report required.--Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall, in consultation with the Secretary of the Treasury, the Chairman of the Federal Reserve, the Chairman of the Federal Deposit Insurance Corporation, and representatives of military charity organizations and consumer organizations, submit to the appropriate committees of Congress a report on predatory lending practices directed at members of the Armed Forces and their families.

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   Inserted: (2) Elements.--The report under paragraph (1) shall include--

   Inserted: (A) a description of the prevalence of predatory lending practices directed at members of the Armed Forces and their families;

   Inserted: (B) an assessment of the effects of predatory lending practices on members of the Armed Forces and their families;

   Inserted: (C) a description of the strategy of the Department of Defense, and of any current or planned programs of the Department, to educate members of the Armed Forces and their families regarding predatory lending practices;

   Inserted: (D) a description of the strategy of the Department of Defense, and of any current or planned programs of the Department, to reduce or eliminate--

   Inserted: (i) the prevalence of predatory lending practices directed at members of the Armed Forces and their families; and

   Inserted: (ii) the negative effect of such practices on members of the Armed Forces and their families; and

   Inserted: (E) recommendations for additional legislative and administrative action to reduce or eliminate predatory lending practices directed at members of the Armed Forces and their families.

   Inserted: (3) Definitions.--In this subsection:

   Inserted: (A) The term "appropriate committees of Congress" means--

   Inserted: (i) the Committees on Armed Services and Banking, Housing, and Urban Affairs of the Senate; and

   Inserted: (ii) the Committees on Armed Services and Financial Services of the House of Representatives.

   Inserted: (B) The term "predatory lending practice" means an unfair or abusive loan or credit sale transition or collection practice.

   Original wording

   At the end of subtitle H of title V, add the following:

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As printed