S. 582Senate111th Congress (2009-2011)In Committee

Interest Rate Reduction Act

Introduced March 12, 2009

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

March 12, 2009

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SenateIntro Referral

Introduced in Senate

March 12, 2009

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S3076-3077)

March 12, 2009

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

March 12, 2009

Floor Debate

13 members

What members said about S. 582 on the floor

5 Republicans7 Democrats1 Independent
Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Mar 12, 2009

Mr. President, I rise today to introduce the Immigration Fraud Prevention Act of 2009, on behalf of myself and Senator Kennedy, to prevent the exploitation of people, citizens, and non-citizens…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Mar 12, 2009

Mr. President, I rise today to introduce, with my colleague, Senator Pryor, the Building a Stronger America Act. This bipartisan legislation is a vital step toward recognizing the value of ``science…

Mitch McConnell
Sen. Mitch McConnellR-KY · Mar 12, 2009

Madam President, one of America's bravest soldiers has fallen, so I rise to speak about SGT William Patrick Rudd of Madisonville, KY. On October 5, 2008, Sergeant Rudd tragically died of the wounds…

Bernard Sanders
Sen. Bernard SandersI-VT · Mar 12, 2009

Mr. President, as I think all Americans understand, there is a new sense of outrage today at what Wall Street has done through their greed, their recklessness and, perhaps, illegal behavior, in…

Bernard Sanders
Sen. Bernard SandersI-VT · Mar 12, 2009

Mr. President, as I think all Americans understand, there is a new sense of outrage today at what Wall Street has done through their greed, their recklessness and, perhaps, illegal behavior, in…

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Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · Mar 12, 2009

Mr. President, today I am introducing the Taxpayer Abuse Prevention Act. Refund anticipation loans, RALs, are short term loans facilitated by tax preparers and secured by a taxpayer's expected tax…

Mark Udall
Sen. Mark UdallD-CO · Mar 12, 2009

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I rise today to express my support for the bipartisan bill introduced earlier this week by…

Robert P. Casey Jr.
Sen. Robert P. Casey Jr.D-PA · Mar 12, 2009

Mr. President, I rise today to introduce the Agriculture Smart Trade Act along with my colleague Senator Stabenow. The goal of this legislation is to ensure that, as we consider the various free…

Harry Reid
Sen. Harry ReidD-NV · Mar 12, 2009

Mr. President, I am pleased to say that we are closing the book on our Nation's failed nuclear waste policy. After decades of fighting the Yucca Mountain project, I can say with confidence that…

Patty Murray
Sen. Patty MurrayD-WA · Mar 12, 2009

Mr. President, today I am pleased to introduce legislation that would make a tremendous difference in the lives of the millions of Americans suffering from neurological illnesses, injuries, or…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Mar 12, 2009

Mr. President, today I am pleased to introduce the Global Service Fellowship Act with Senators Voinovich, Whitehouse, Cochran and Cardin. This important bill would provide more Americans the…

Mike  Johanns
Sen. Mike Johanns R-NE · Mar 12, 2009

Mr. President, I rise today to offer my support for the Military Family Nutrition Protection Act, which we introduced today to protect the eligibility of military families for nutrition assistance…

Bernard Sanders
Sen. Bernard SandersI-VT · Mar 12, 2009

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I yield the floor, and I suggest the absence of a quorum.

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Richard G. Lugar
Sen. Richard G. LugarR-IN · Mar 12, 2009

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

John Ensign
Sen. John EnsignR-NV · Mar 12, 2009

Madam President, I ask unanimous consent that the order for the quorum call be rescinded.

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 12, 2009

II

111th CONGRESS

1st Session

S. 582

IN THE SENATE OF THE UNITED STATES

March 12, 2009

Mr. Sanders (for himself and Mr. Durbin) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend the Truth in Lending Act to protect consumers from usury, and for other purposes.

1.

Short title

This Act may be cited as the Interest Rate Reduction Act.

2.

National consumer credit usury rate

Section 107 of the Truth in Lending Act (15 U.S.C. 1606) is amended by adding at the end the following new subsection:

(f)

National consumer credit usury rate

(1)

Limitation established

Notwithstanding subsection (a) or any other provision of law, but except as provided in paragraph (2), the annual percentage rate applicable to any extension of credit may not exceed 15 percent on unpaid balances, inclusive of all finance charges. Any fees that are not considered finance charges under section 106(a) may not be used to evade the limitations of this paragraph, and the total sum of such fees may not exceed the total amount of finance charges assessed.

(2)

Exceptions

(A)

Board authority

The Board may establish, after consultation with the appropriate committees of Congress, the Secretary of the Treasury, and any other interested Federal financial institution regulatory agency, an annual percentage rate of interest ceiling exceeding the 15 percent annual rate under paragraph (1) for periods of not to exceed 18 months, upon a determination that—

(i)

money market interest rates have risen over the preceding 6-month period; and

(ii)

prevailing interest rate levels threaten the safety and soundness of individual lenders, as evidenced by adverse trends in liquidity, capital, earnings, and growth.

(B)

Treatment of credit unions

The limitation in paragraph (1) does not apply with respect to any extension of credit by an insured credit union, as that term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).

(3)

Penalties for charging higher rates

(A)

Violation

The taking, receiving, reserving, or charging of an annual percentage rate or fee greater than that permitted by paragraph (1), when knowingly done, shall be deemed a violation of this title, and a forfeiture of the entire interest which the note, bill, or other evidence of the obligation carries with it, or which has been agreed to be paid thereon.

(B)

Refund of interest amounts

If an annual percentage rate or fee greater than that permitted under paragraph (1) has been paid, the person by whom it has been paid, or the legal representative thereof, may, by bringing an action not later than 2 years after the date on which the usurious collection was last made, recover back from the lender in an action in the nature of an action of debt, the entire amount of interest, finance charges, or fees paid.

(4)

Civil liability

Any creditor who violates this subsection shall be subject to the provisions of section 130.

.

3.

Civil liability conforming amendment

Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended by inserting section 107(f), before this chapter.