I
119th CONGRESS
2d Session
H. R. 10439
IN THE HOUSE OF REPRESENTATIVES
September 16, 2026
Mr. Grothman (for himself and Mr. García of Illinois) introduced the following bill; which was referred to the Committee on Financial Services
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.
Short title
This Act may be cited as the Veterans and Consumers Fair Credit Act
.
Limitations on consumer credit and maximum rates of interest
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:
Limitations on consumer credit and maximum rates of interest
Application of the Military Lending Act
In general
Except as provided in paragraph (2), section 987(b) of title 10, United States Code (commonly referred to as the Military Lending Act
), shall apply to a creditor who extends consumer credit to a consumer to the same extent as such section applies to a creditor who extends consumer credit to a covered member or a dependent with respect to a covered member (as those terms are defined in such section 987).
Exceptions
Paragraph (1) shall not apply to an extension of credit that is—
a residential mortgage;
a loan procured to purchase a car, when that loan is offered for the express purpose of financing the purchase and is secured by the car procured; or
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 usury limit provided under section 107(5)(A) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)), as implemented by the National Credit Union Administration Board.
No exemptions permitted
The exemption authority of the Director of the Bureau under section 105(f) shall not apply with respect to this section.
Calculation of the annual percentage rate for open-End credit
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 final rule issued by the Secretary of Defense on July 22, 2015, to carry out section 987 of title 10, United States Code.
Exception to finance charge calculation
In general
Notwithstanding paragraph (1), for consumer credit extended in a credit card account under an open end consumer credit plan that is not secured by a home, a bona fide fee other than a periodic rate is not a charge required to be included within the finance charge for purposes of this section if the fee is assessed in compliance with section 127(n).
Limitation
Subparagraph (A) shall not apply to—
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
any fee for a credit-related ancillary product sold in connection with the credit card account under an open end consumer credit plan that is not secured by a home.
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.
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 with respect to a covered member (as those terms are defined in such section 987).
Preservation of State enforcement
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 on behalf of the residents of that State—
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
to—
enforce compliance with the requirements of this section or rules issued under this section; and
secure remedies under this section or remedies otherwise provided under other law.
State regulators
Not later than 3 years after the date on which a violation of this section occurs, a State regulator of a creditor may bring a civil action or initiate another appropriate proceeding to—
enforce compliance with the requirements of this section or regulations issued under this section with respect to such creditor that is, or is required to be, State-chartered, incorporated, licensed, or otherwise authorized to do business under State law; and
secure remedies under this section or remedies otherwise provided under other provisions of law with respect to such creditor.
Notice requirement
In general
Before initiating an action pursuant to paragraph (1) or (2) to enforce compliance with the requirements of this section or rules issued under this section, a State attorney general or State regulator shall timely provide a copy of the complete complaint to be filed and written notice describing such action or proceeding to the Director of the Bureau and the prudential regulator, if any, of the creditor.
Emergency action
If prior notice is not practicable, the State attorney general or State regulator shall provide a copy of the complete complaint and the notice to Director of the Bureau and the prudential regulator, if any, immediately upon instituting the action.
Contents of notice
The notice required under this paragraph shall, at a minimum, describe—
the identity of the parties;
the alleged facts underlying the proceeding; and
whether there may be a need to coordinate the prosecution of the proceeding so as not to interfere with any action, including any rulemaking, undertaken by Director of the Bureau, a prudential regulator, or another Federal agency.
Bureau response
In any action described in paragraph (1) or (2), the Bureau may—
intervene in the action as a party;
upon intervening, remove the action to the appropriate United States district court (if the action was not originally brought there) and be heard on all matters arising in the action; and
appeal any order or judgment, to the same extent as any other party in the proceeding may.
Regulations
In general
Notwithstanding section 1027(o) of the Consumer Financial Protection Act of 2010 (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—
issue rules carrying out this section; and
notify Congress and the public, including on the website of the Bureau, regarding the issuance of the rules required under subparagraph (A).
Consistency
The rules issued by the Bureau under paragraph (1)—
shall be consistent with rules issued by the Secretary of Defense to carry out section 987 of title 10, United States Code; and
may not provide lesser protection to consumers than the protection afforded covered members, as that term is 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 such section 987.
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Clerical amendment
The table of contents for chapter 2 of the Truth in Lending Act is amended by adding at the end the following:
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Applicability
The amendments made by subsection (a) shall apply to an extension of credit made after the earlier of—
the date on which the rules issued by the Director of 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
the date that is 18 months after the date of enactment of this Act.