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US HR3490

US HR3490
Small Business Lending Fairness Act


summary

Introduced
06/25/2019
In Committee
11/14/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To amend the Truth in Lending Act to prohibit certain unfair credit practices, and for other purposes. This bill prohibits as a condition to a loan or extension of credit a confession of judgment or similar agreement. (A confession of judgment is an agreement to a judgment of liability without notice and opportunity to be heard in court in the event of the default of a borrower.)

AI Summary

This bill, the Small Business Lending Fairness Act, amends the Truth in Lending Act to prohibit the use of "confessions of judgment" - agreements where a borrower admits liability without notice or opportunity for a hearing in the event of default. The bill defines "debt" broadly to include any obligation to pay money, regardless of whether it is absolute or contingent, and allows for equitable remedies in case of a breach. The bill also expands liability for violations from just "creditors" to any "person" engaging in these unfair credit practices.

Committee Categories

Business and Industry

Sponsors (3)

Last Action

Placed on the Union Calendar, Calendar No. 336. (on 03/19/2020)

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