S.Amdt. 1285

SA 1285. Mr. REED (for himself and Mr. Merkley) submitted an
amendment intended to be proposed by him to the bill H.R. 4366, making
appropriations for military construction, the Department of Veterans
Affairs, and related agencies for the fiscal year ending September 30,
2024, and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. _____. LIMITATIONS ON CONSUMER CREDIT AND MAXIMUM RATES
OF INTEREST.

(a) In General.--Chapter 2 of the Truth in Lending Act (15
U.S.C. 1631 et seq.) is amended by adding at the end the
following:

``Sec. 140B. Limitations on consumer credit and maximum rates
of interest

``(a) Application of the Military Lending Act.--
``(1) In general.--Except as provided in paragraph (2),
section 987(b) of title 10, United States Code, shall apply
to a creditor who extends consumer credit to a consumer to
the same extent as that section applies to a creditor who
extends consumer credit to a covered member or a dependent,
as those terms are defined in such section 987.
``(2) Exceptions.--Paragraph (1) shall not apply to--
``(A) a residential mortgage;
``(B) a loan procured in the course of purchasing a car if
the loan is offered--
``(i) for the express purpose of financing the purchase;
and
``(ii) is secured by the car; or
``(C) a loan made by a Federal credit union, as defined in
section 101 of the Federal Credit Union Act (12 U.S.C. 1752),
subject to the rate of interest limit provided under section
107(5)(A)(vi) of that Act, as implemented by the National
Credit Union Administration Board.
``(b) No Exemptions Permitted.--The exemption authority of
the Bureau under section 105(f) shall not apply with respect
to this section.
``(c) Calculation of the Annual Percentage Rate for Open-
end Credit.--
``(1) In general.--For purposes of this section, the annual
percentage rate applicable to an open-end credit plan shall
be calculated under section 107(a)(2), subject to adjustments
to the amount considered a finance charge, as provided in the
rules issued by the Secretary of Defense on July 22, 2015, to
carry out section 987 of title 10, United States Code.
``(2) Exception to finance charge calculation.--
``(A) In general.--Notwithstanding paragraph (1), for
consumer credit extended in a credit card account under an
open-end (not home-secured) consumer credit plan, a bona fide
fee other than a periodic rate is not a charge required to be
included in the finance charge for purposes of this section
if the fee is assessed in compliance with section 127(n).
``(B) Limitation.--Subparagraph (A) shall not apply to--
``(i) any credit insurance premium or fee, including any
charge for single premium credit insurance, any fee for a
debt cancellation contract, or any fee for a debt suspension
agreement; or

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``(ii) any fee for a credit-related ancillary product sold
in connection with the credit card account under an open-end
(not home-secured) consumer credit plan.
``(d) Relation to State Law.--Nothing in this section may
be construed to preempt any provision of State law that
provides greater protection to consumers than is provided
under this section.
``(e) Penalties and Remedies.--Section 987(f) of title 10,
United States Code, shall apply to a creditor who extends
consumer credit to a consumer in violation of this section to
the same extent as such section 987(f) applies to a creditor
who extends consumer credit to a covered member or a
dependent, as those terms are defined in such section 987.
``(f) Preservation of State Enforcement.--
``(1) State attorneys general.--Not later than 3 years
after the date on which a violation of this section occurs,
the attorney general of a State (or an equivalent official)
may bring a civil action in the name of that State--
``(A) in any district court of the United States that is
located in that State or in a State court that is located in
that State and that has jurisdiction over the defendant; and
``(B) to--
``(i) enforce provisions of this section or rules issued
under this section; and
``(ii) secure remedies under provisions of this section or
remedies otherwise provided under other law.
``(2) State regulators.--Not later than 3 years after the
date on which a violation of this section occurs, a State
regulator may bring a civil action or initiate another
appropriate proceeding to--
``(A) enforce the provisions of this section or regulations
issued under this section with respect to any entity that is,
or is required to be, State-chartered, incorporated,
licensed, or otherwise authorized to do business under State
law; and
``(B) secure remedies under provisions of this section or
remedies otherwise provided under other provisions of law
with respect to an entity described in subparagraph (A).
``(3) Notice requirement; additional regulations.--
Subsections (b), (c), and (d) of section 1042 of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5552), shall
apply to a civil action or other appropriate proceeding
brought or initiated under paragraph (1) or (2) to the same
extent as those subsections apply to actions and other
administrative and regulatory proceedings described in
subsection (a) of that section.
``(g) Regulations.--
``(1) In general.--Notwithstanding section 1027(o) of the
Consumer Financial Protection Act (12 U.S.C. 5517(o)), not
later than 1 year after the date of enactment of this
section, the Bureau, in consultation with the Secretary of
Defense, shall--
``(A) issue rules carrying out this section; and
``(B) notify Congress and the public, including on the
website of the Bureau, regarding the issuance of the rules
required under subparagraph (A).
``(2) Consistency.--The rules issued by the Bureau under
paragraph (1)--
``(A) shall be consistent with rules issued by the
Secretary of Defense to carry out section 987 of title 10,
United States Code; and
``(B) may not provide lesser protection to consumers than
the protection afforded covered members, as defined in
section 987 of title 10, United States Code, in applicable
provisions in the rules issued by the Secretary of Defense on
July 22, 2015, to carry out that section.''.
(b) Technical and Conforming Amendment.--The table of
contents for chapter 2 of the Truth in Lending Act is amended
by adding at the end the following:
``140B. Limitations on consumer credit and maximum rates of
interest.''.
(c) Applicability.--The amendments made by subsection (a)
shall apply to an extension of credit made after the earlier
of--
(1) the date on which the rules issued by the Bureau of
Consumer Financial Protection under subsection (g) of section
140B of the Truth in Lending Act, as added by subsection (a)
of this section, require compliance; and
(2) the date that is 18 months after the date of enactment
of this Act.
______