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Bill > HR2540


US HR2540

US HR2540
Small Business Lending Fairness Act


summary

Introduced
04/14/2021
In Committee
04/14/2021
Crossed Over
Passed
Dead
01/03/2023

Introduced Session

117th Congress

Bill Summary

A BILL To amend the Truth in Lending Act to prohibit certain unfair credit practices, and for other purposes.

AI Summary

This bill, the Small Business Lending Fairness Act, amends the Truth in Lending Act to prohibit certain unfair credit practices. Specifically, it bans the use of cognovits (confessions of judgment), warrants of attorney, and other waivers of the right to notice and the opportunity to be heard in the event of a lawsuit related to an extension of credit or creation of debt. The bill also provides a broader definition of "debt" to include obligations where the understanding is that any part of the money may be returned, or where the lender has the right to an equitable remedy for breach of performance. Additionally, the bill expands the definition of "person" in the Truth in Lending Act to apply beyond just creditors.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Referred to the House Committee on Financial Services. (on 04/14/2021)

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