Bill > S3793

This bill, titled the "Predatory Lending Elimination Act," amends the Truth in Lending Act to extend consumer credit protections, originally designed for members of the Armed Forces and their dependents, to all consumers. Specifically, it incorporates the provisions of the Military Lending Act (MLA), found in section 987 of title 10 of the U.S. Code, to apply to any creditor offering consumer credit to any consumer, not just military personnel. This means that certain limitations on consumer credit and maximum interest rates, as defined by the MLA, will now apply broadly. However, there are exceptions, and this bill will not apply to residential mortgages, car loans made for the purpose of purchasing a car and secured by that car, or loans made by Federal credit unions, provided they adhere to specific interest rate limits. The bill also clarifies how the annual percentage rate for open-end credit, such as credit cards, should be calculated, generally following existing rules but with specific adjustments for finance charges, though certain fees associated with credit card accounts are excluded from being considered finance charges under specific conditions. Importantly, this legislation explicitly states that it does not preempt any state laws that offer greater consumer protections. The bill also outlines penalties and remedies for violations, mirroring those in the MLA, and preserves the ability of State Attorneys General and State regulators to enforce these provisions. The Bureau of Consumer Financial Protection (CFPB) is tasked with issuing implementing regulations within one year of enactment, ensuring they are consistent with and provide at least the same level of protection as the existing MLA rules. These new protections will take effect after the CFPB issues its rules or 18 months after the bill's enactment, whichever comes first.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/3793/all-info