118 HR 8338 RH: Clarity in Lending Act
U.S. House of Representatives
2024-12-03
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the Clarity in Lending Act
. (b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Title I—Small-dollar credit productsSec. 101. Safe harbor for small-dollar credit products.Title II—Rectifying Undefined Descriptions of Abusive Acts and PracticesSec. 201. Mitigating factors in assessing civil penalties.Sec. 202. Rulemaking relating to unfair, deceptive or abusive acts or practices.Sec. 203. Authority to declare an act unlawful based on discrimination or service as government contractor.Sec. 204. Clarifying the abusive standard for the Bureau of Consumer Financial Protection.Sec. 205. Notice and opportunity to cure.Sec. 206. Abusive, unfair, or deceptive acts or practices enforcement actions.Sec. 207. Look-back provisions for the Bureau of Consumer Financial Protection.Title III—Small Lenders Exempt from New Data and Excessive ReportingSec. 301. Small business loan data collection.Title IV—Bank Loan PrivacySec. 401. Rulemaking requirement.<enum>I</enum><header>Small-dollar credit products</header><section id="H00A05AFEBC684D56B2C6F29CD19F0CD7"><enum>101.</enum><header>Safe harbor for small-dollar credit products</header><subsection id="H24AA1F8348C14F309E43CF70F7981F22"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1601">15 U.S.C. 1601 et seq.</external-xref>) is amended by inserting after section 109 the following:</text><quoted-block style="USC" id="HFCC2795AAE02439C8FF74BDF41FFD728" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><section id="HCF4304FDA4A84E7AB35D0C95B5EE2AC0"><enum>110.</enum><header>Safe harbor for small-dollar credit products</header><subsection id="H96241AF85D284458A9F405F2078F0FA4"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">If a covered entity complies with the requirements set forth in subsections (b), (c), and (e) with respect to the offering of a small-dollar product to a consumer, such covered entity shall not be liable in connection with such offering of a small-dollar product, for—</text><paragraph id="H888CBEC85484411EB8B9CF87A3EF4646"><enum>(1)</enum><text>any civil money penalties from any enforcement action brought by the Bureau, the appropriate Federal banking agency, or the National Credit Union Administration for a violation of this title; or</text></paragraph><paragraph id="H3C72D043052B4A92A12F13E9DE22A03C"><enum>(2)</enum><text>any damages or other monetary relief through a private right of action brought under this title.</text></paragraph></subsection><subsection id="H269ADED54B0543BAAB379EC4A503E3B8"><enum>(b)</enum><header>Product structure requirements</header><paragraph id="H7E8C464368AB47AB86A06B7CA55475BB"><enum>(1)</enum><header>In the case of an installment loan</header><text display-inline="yes-display-inline">If a small-dollar credit product is structured by a covered entity as an installment loan—</text><subparagraph id="HBEC9EBDF34AD484FB3AE8E253FDEBB96" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the repayment term shall be more than 45 days; </text></subparagraph><subparagraph id="HB843D6656FC646EF89CC67A4A6C6C50F" commented="no"><enum>(B)</enum><text>payments shall be fully amortized across more than one payment;</text></subparagraph><subparagraph id="HA05D760E32B64C7DBDE88E7C04A51B90"><enum>(C)</enum><text display-inline="yes-display-inline">rollovers into new small-dollar credit products shall be prohibited; and</text></subparagraph><subparagraph id="H613B2665DB80488095F3BC9F48358865"><enum>(D)</enum><text display-inline="yes-display-inline">the covered entity may not issue any small-dollar credit product to a consumer if such consumer has a small-dollar credit product open with such covered entity at the time such consumer applies for a small-dollar credit product.</text></subparagraph></paragraph><paragraph id="HD62392F9E7F14A82854A384D244B26F6"><enum>(2)</enum><header>In the case of a line of credit</header><text display-inline="yes-display-inline">If a small-dollar credit product is structured by a covered entity as a line of credit—</text><subparagraph id="H20BCA24863BA4F16A1E289B133FAB2D5" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the repayment term for each draw shall be more than 45 days unless a single payment is used and the draw is not more than 10 percent of the lesser of $3,500 or 20 percent of the total amount of a consumer’s average monthly direct deposits during the preceding six months; and</text></subparagraph><subparagraph id="H5D42E7E6ACB14239BC51A4BD5DFD8C88"><enum>(B)</enum><text>payments for each draw shall be fully amortized across more than one payment, except in the case of any single-payment loans.</text></subparagraph></paragraph><paragraph id="HD8EA916505F8444E92047E12DFB842A6"><enum>(3)</enum><header>Rules of construction</header><subparagraph id="H7C4B9029055A4DC5B10C7E1F1CC91625"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Nothing in this subsection may be construed to prohibit the Bureau, a Federal banking agency, or the National Credit Union Administration from issuing a cease-and-desist order or restitution order under this title against a covered entity.</text></subparagraph><subparagraph id="HC431149106B84968BBF78EF0B9D08C1C"><enum>(B)</enum><header>Enforcement of other statutes</header><text display-inline="yes-display-inline">Nothing in this subsection may be construed to prohibit the Bureau, a Federal banking agency, or the National Credit Union Administration from enforcing any provision of law not contained within this title against a covered entity.</text></subparagraph></paragraph></subsection><subsection id="H0C1280D45FAC412D80F4DBA1097AFC91"><enum>(c)</enum><header>Underwriting requirements</header><text>When considering whether to offer a small-dollar credit product to a specific consumer, a covered entity—</text><paragraph id="H4258911A1AB54C85B2A72121E83AEE6C"><enum>(1)</enum><text display-inline="yes-display-inline">shall use sound underwriting processes; and</text></paragraph><paragraph id="H55D52EA614DB45CFB08EDDBF68C58D17"><enum>(2)</enum><text>may analyze internal or external data sources, including consumer deposit account activity, to assess the creditworthiness of a consumer.</text></paragraph></subsection><subsection id="HD0CD46C325EB4ACA962949BDFA45D071"><enum>(d)</enum><header>Rule of construction</header><text>Nothing in this title may be construed to prohibit a covered entity from offering a small-dollar product that does not comply with the safe harbor requirements set forth under this section.</text></subsection><subsection id="H0910269797CB4C35941AA1C07D66329A"><enum>(e)</enum><header>Additional limitations and requirements</header><paragraph id="H8556EB406CD243288F81476EC7178F1A"><enum>(1)</enum><header>Balloon payments</header><text display-inline="yes-display-inline">No payment required in association with a small-dollar credit product offered by a covered entity may be greater than double the amount of any other payment required in association with such product.</text></paragraph><paragraph id="HA2D2AD318A294B79B4834A348CBD114D"><enum>(2)</enum><header>Disclosures</header><text display-inline="yes-display-inline">Each covered entity that offers a small-dollar credit product shall comply with all disclosure requirements set forth by this title.</text></paragraph><paragraph id="H473E9613596E417E8663A49E0E4F1051"><enum>(3)</enum><header>Penalties and fees</header><text display-inline="yes-display-inline">A covered entity may not impose any prepayment penalty, overdraft fee, or nonsufficient funds fee in connection with a small-dollar credit product.</text></paragraph><paragraph id="HD3D697316EEA4BA3BA79C7A31458EF5C"><enum>(4)</enum><header>Transfer of amounts</header><text>Amounts made available to a consumer through a small-dollar credit product offered by a covered entity shall be disbursed to the account of such consumer by such covered entity not later than 5 days after the approval of the consumer for the small-dollar credit product.</text></paragraph></subsection><subsection id="H616C0156368949D6BBFC6E795F3243E0"><enum>(f)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text><paragraph id="H6EEB403A55914AF4BF0DD85776F5036C"><enum>(1)</enum><header>Covered entity</header><text display-inline="yes-display-inline">The term <quote>covered entity</quote> means—</text><subparagraph id="H3D88526B96D14F5AAE1C0A01B6F7BEA2"><enum>(A)</enum><text>an insured depository institution;</text></subparagraph><subparagraph id="HA9510EFAFF53432187B97FBF1F68BA7F"><enum>(B)</enum><text>an insured credit union;</text></subparagraph><subparagraph id="HDDEB284DBFAC4ED5AD9A4EC3D76C9C4F"><enum>(C)</enum><text>a third-party with whom an insured depository institution has contracted for products or services related to origination, servicing, or administrative management of a small-dollar credit product; or</text></subparagraph><subparagraph id="H19394388784B499BA778FADA5E1D28DA"><enum>(D)</enum><text>a third-party with whom an insured credit union has contracted for products or services related to origination, servicing, or administrative management of a small-dollar credit product.</text></subparagraph></paragraph><paragraph id="H19C69FB7FFEF46E3B9A45DF81AAEDB55"><enum>(2)</enum><header>Federal banking agency definitions</header><text display-inline="yes-display-inline">The terms <quote>appropriate Federal banking agency</quote> and <quote>Federal banking agency</quote> have the meaning given those terms, respectively, in section 3 of the Federal Deposit Insurance Act.</text></paragraph><paragraph id="H998B7DC641C946FE8D0251920E965E3D"><enum>(3)</enum><header>Insured credit union</header><text>The term <quote>insured credit union</quote> has the meaning given the term in section 101 of the Federal Credit Union Act. </text></paragraph><paragraph id="H4D3072C7EED2481AA7244DB326A4B688"><enum>(4)</enum><header>Insured depository institution</header><text display-inline="yes-display-inline">The term <quote>insured depository institution</quote> has the meaning given the term in section 3 of the Federal Deposit Insurance Act.</text></paragraph><paragraph id="HE6801A7E6CE54CB396DCBD99D90B240A"><enum>(5)</enum><header>Small-dollar credit product</header><text display-inline="yes-display-inline">The term <quote>small-dollar product</quote> means a loan or line of credit with a value of $3,500 or less.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HD490FE6DA9874EC6A42089F09417C7A8" display-inline="no-display-inline"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of contents for chapter 1 of the Truth in Lending Act is amended by inserting after the item for section 109 the following:</text><quoted-block style="USC" id="HC7D4E76D36D94FD39A415C5F16493437" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><toc regeneration="no-regeneration" changed="added" reported-display-style="italic" committee-id="HBA00"><toc-entry level="section">110. Safe harbor for small-dollar credit products.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><enum>II</enum><header>Rectifying Undefined Descriptions of Abusive Acts and Practices</header><section id="HB2149417A8FE40CF8B9F8125AD85E497"><enum>201.</enum><header>Mitigating factors in assessing civil penalties</header><text display-inline="no-display-inline">Section 1055(c) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5565">12 U.S.C. 5565(c)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" id="H3315C7458514499B90718B6B8C8BFD57" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><paragraph id="H1166616AB2834102BBAE6B986DBE0FBF"><enum>(6)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">The Bureau shall, not later than 180 days after the date of the enactment of this paragraph, issue a rule that establishes policies and procedures relating to the imposition of civil monetary penalties sought under this subsection, including the application of the mitigating factors described in paragraph (3).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H160D2E20A01949B4AB8EA1A163A6F257"><enum>202.</enum><header>Rulemaking relating to unfair, deceptive or abusive acts or practices</header><subsection id="HAE428B73D74A40DAAA02CEB68B51F3AC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>) is amended by striking subsection (b) and inserting the following:</text><quoted-block style="OLC" id="H9917E728E7BA4DAE9FCEA9B234DC87C4" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><subsection id="H42B4199C4DB1441BB0A65F802332676E"><enum>(b)</enum><header>Rulemaking</header><paragraph id="H1D3B1B33839C4B909FC36AD694DB69AB"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Bureau may prescribe rules applicable to a covered person or service provider identifying as unlawful unfair, deceptive, or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. Rules under this section may include requirements for the purpose of preventing such acts or practices.</text></paragraph><paragraph id="HFF8267298B1141219C18533709FC154D"><enum>(2)</enum><header>Cost-benefit analysis required</header><text>Any final rule issued by the Bureau relating to abusive, unfair, or deceptive acts or practices shall include a cost-benefit analysis.</text></paragraph><paragraph id="HD37BE70112BE4A21B56426D9D1295163"><enum>(3)</enum><header>Definition of abusive act or practice</header><text display-inline="yes-display-inline">The Bureau shall, not later than 180 days after the date of the enactment of this subsection, issue a rule that defines the term <quote>abusive act or practice</quote> for the purposes of this section. </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HAB3804CC37EB4CF3AA631ACC791A7F27"><enum>(b)</enum><header>Opportunity for comment</header><text display-inline="yes-display-inline">The Bureau of Consumer Financial Protection shall, not later than 180 days after the date of the enactment of this subsection, allow the public to submit comments with respect to any confusion about how the Bureau of Consumer Financial Protection uses its authority with respect to unfair, deceptive, or abusive acts or practices.</text></subsection></section><section id="HD873B9DF036C4F60A2A8D351CDC92B10"><enum>203.</enum><header>Authority to declare an act unlawful based on discrimination or service as government contractor</header><text display-inline="no-display-inline">Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>), as amended by section 204, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H98D1201B024445669709E099575E738C" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><subsection id="H4D34008080C6436195C4FBDA0591A446"><enum>(h)</enum><header>Authority To declare an act unlawful based on discrimination or service as government contractor</header><text display-inline="yes-display-inline">The Bureau may not interpret the authority of the Bureau relating to unfair, deceptive, or abusive acts and practices to include—</text><paragraph id="H5C3181E728F94A638F49F372C3060FD0"><enum>(1)</enum><text>discriminatory practices; or</text></paragraph><paragraph id="H160476BC75984E8B99A1E06549D483B2"><enum>(2)</enum><text display-inline="yes-display-inline">acts or practices by a covered person performing the acts or practices pursuant to a contract with a Federal agency (as defined under section 701(b) of title 5, United States Code).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HA2BF8923C82C4596ACAA7421FAD52BEB"><enum>204.</enum><header>Clarifying the abusive standard for the Bureau of Consumer Financial Protection</header><text display-inline="no-display-inline">Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>) is amended—</text><paragraph id="HF27307C0B89D4792BC58C1F79B33E29D"><enum>(1)</enum><text>by redesignating subsections (e) and (f) as subsections (f) and (g); and</text></paragraph><paragraph id="H36C4B38C4B7A4E6AAE29FD110752FCB2"><enum>(2)</enum><text>by striking subsection (d) and inserting the following:</text><quoted-block style="OLC" id="H251E0CB8C0374BE2B52588CBCFCFCA38" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><subsection id="H8B3AD2A042254C15B3C13AC9A6891BBB"><enum>(d)</enum><header>Abusive</header><paragraph id="HAEBBE2FA27CB4D398A324F40C37591D0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Bureau shall have no authority under this section to declare an act or practice of a covered person abusive in connection with the provision of a consumer financial product or service, unless the act or practice— </text><subparagraph id="H3042357DD0154BFAA3B39C5F71D577F7"><enum>(A)</enum><text>intentionally and materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or</text></subparagraph><subparagraph id="H93454B7D8B88446792675643E008D9B9"><enum>(B)</enum><text>takes unreasonable advantage of—</text><clause id="HD9B6C265D0EF4147A05281B7F53AC7EA"><enum>(i)</enum><text display-inline="yes-display-inline">a lack of understanding by the consumer with respect to the possible impact, material risks, costs, or conditions of the product or service, or the likelihood of the risks, costs, or conditions of the product or service negatively affecting the consumer; and</text></clause><clause id="H2DC0FFC548BF49B4BD79480A791D2EFC"><enum>(ii)</enum><text>the reasonable reliance the consumer places on an affirmative action or representation of such covered person to induce such consumer to rely on such action or representation.</text></clause></subparagraph></paragraph><paragraph id="HD083838F37904726BFD7EDCE55654761"><enum>(2)</enum><header>Abusive actions</header><text display-inline="yes-display-inline">An act or practice shall not be considered abusive if the act or practice—</text><subparagraph id="H885C7D90C3A74FEB85E6788C62D26452"><enum>(A)</enum><text>is also unfair or deceptive; or</text></subparagraph><subparagraph id="H03D11D5BB7B44B8A93A6D7638BB6C239"><enum>(B)</enum><text display-inline="yes-display-inline">is otherwise prohibited by Federal consumer financial law.</text></subparagraph></paragraph></subsection><subsection id="H53A03A52DB3D4892B637F0C12EF49D20"><enum>(e)</enum><header>Good-Faith effort To comply</header><paragraph id="H2AC33AF8CE034086985669CF81A7924F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Bureau may not seek monetary relief from a covered person under this section unless the covered person has not established by a preponderance of the evidence that they made a good-faith effort to comply.</text></paragraph><paragraph id="H0244B5389E8C4FF2910AA98AE3B2215F"><enum>(2)</enum><header>Authority to seek legal or equitable remedies</header><text>The limitation described in paragraph (1) shall not restrict the authority of the Bureau to seek legal or equitable remedies, such as damages and restitution, to redress an identifiable consumer injury caused by the abusive acts or practices of such covered person.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="HD733B7BB722B4A1282F3A55EB95C0659"><enum>205.</enum><header>Notice and opportunity to cure</header><text display-inline="no-display-inline">Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>), as amended by section 203, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H49C2B1E06303441B845B45EB9BDEF9C5" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><subsection id="H768A1413320245709B885DCD3BE18FC1"><enum>(i)</enum><header>Notice and opportunity To cure</header><paragraph id="HEA7E250BB2E44D50B7D2E87B2317A482"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">If a covered person self-identifies a potential unfair, deceptive, or abusive act or practice carried out by such covered person, the Bureau shall, not later than 90 days after such self-identification, provide a written notice in the form of a potential action and request for response letter or a notice and opportunity to respond and advise letter of the potential unfair, deceptive, or abusive act or practice to such covered person and inform the covered person that such person has 180 days after the date the covered person receives such notice to cure such potential unfair, deceptive, or abusive act before the Bureau may pursue other legal action.</text></paragraph><paragraph id="H01E57D61ECCC48379D6B12EA4576C650"><enum>(2)</enum><header>Tolling of statute of limitations</header><text>Any applicable statute of limitations that applies to conduct under which the Bureau has given notice and an opportunity to cure shall not toll until—</text><subparagraph id="H93A75A2CCCF9444DA418F6162CC2DABB"><enum>(A)</enum><text display-inline="yes-display-inline">the covered person cures the potential unfair, deceptive, or abusive act or practice and notifies the Bureau that such act or practice has been cured;</text></subparagraph><subparagraph id="HB6BF0667236C4847B4A9E6A298F6F96C"><enum>(B)</enum><text>the covered person notifies the Bureau that such covered person will not cure the act or practice; or</text></subparagraph><subparagraph id="HEA10ADBB0D6B4547AEFE8A941000764C"><enum>(C)</enum><text>the 180-day period to cure ends.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H6496B7D532EB42E2BB0A4698121E2187"><enum>206.</enum><header>Abusive, unfair, or deceptive acts or practices enforcement actions</header><text display-inline="no-display-inline">Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>), as amended by section 205, is further amended by adding at the end the following:</text><quoted-block style="OLC" id="H4A0862797DFC41C2B09ADCEF77455E9B" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><subsection id="H75F9FD0F8D944AB19068E934F41CA06A"><enum>(j)</enum><header>Unfair, deceptive, or abusive acts or practices enforcement actions</header><text display-inline="yes-display-inline">Enforcement actions brought by the Bureau under this section shall be brought in—</text><paragraph id="H06EEA5089B9441F68A5B5120382DFA34"><enum>(1)</enum><text>the United States district court located where the covered person has its headquarters location; or</text></paragraph><paragraph id="H955A0A1A990A4BDDB5C77675BC8DDC37"><enum>(2)</enum><text>the United States District Court for the District of Columbia.</text></paragraph></subsection><subsection id="H69BA665B660746B19090CC313E17FF0A"><enum>(k)</enum><header>Enforcement Actions</header><paragraph id="HB6C781F9B6334F49BF01B0E084790C43"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">If the Bureau brings an enforcement action under this section, the Bureau shall state with particularity the circumstances that the Bureau alleges constitute a violation of this section.</text></paragraph><paragraph id="HC14911F0C6BD46D09D00580BBBDA5585"><enum>(2)</enum><header>Alternative claims</header><text display-inline="yes-display-inline">If the Bureau brings an enforcement action under this section—</text><subparagraph id="H919EB13B648A48798858F901AE32252B"><enum>(A)</enum><text>claiming that an activity is unfair or deceptive, the Bureau may not claim in the alternative that the activity is abusive; and</text></subparagraph><subparagraph id="HE2F6BB1DA29C46FEB6C11DE907814419"><enum>(B)</enum><text>claiming that an activity is abusive, the Bureau may not claim in the alternative that the activity is unfair or deceptive. </text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H259C9F3CF9C64AC1A314267C086CED52" commented="no"><enum>207.</enum><header>Look-back provisions for the Bureau of Consumer Financial Protection</header><subsection id="H791F6EC5623A4284B8A208821BE5C860" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subtitle B of title X of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5511">12 U.S.C. 5511 et seq.</external-xref>) is amended by adding at the end the following new section:</text><quoted-block style="OLC" id="H98C9FFDBD3134A4BAEAE0EF014CAB812" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><section id="HFDF03B4CDF7D43AC815DC9810415B3E8" commented="no"><enum>1029B.</enum><header>Examination period limitations</header><subsection id="HC1137FAF136444188546FB7EED783E9D" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">When enforcing Federal consumer financial laws, the Bureau may not seek a civil money penalty for any violation that occurred prior to the most recent assignment of a consumer compliance rating that had not been identified in writing as a material finding or supervisory concern at the time the rating was assigned.</text></subsection><subsection id="HE3363F4578BA47CAB1D8D74B37AC8C4D" commented="no"><enum>(b)</enum><header>Exception in cases of fraud or a material misrepresentation</header><text display-inline="yes-display-inline">Subsection (a) shall not apply to a violation that involved fraud or a material misrepresentation.</text></subsection><subsection id="HD3F0C4B646B24DEAB618696E3DF885D8" commented="no"><enum>(c)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">The limitation described in subsection (a) may not be construed to restrict the ability of the Bureau to seek other forms of legal or equitable relief available under subparagraphs (A) through (G) of section 1055(a)(2).</text></subsection></section><after-quoted-block>. </after-quoted-block></quoted-block></subsection><subsection id="HADDF2ABF7E2842A991444148F10603C0" commented="no"><enum>(b)</enum><header>Clerical amendment</header><text>The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 1029A the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H9614CDEE614048D393ED90B855C7CEC0" changed="added" reported-display-style="italic" committee-id="HBA00"><toc regeneration="no-regeneration" changed="added" reported-display-style="italic" committee-id="HBA00"><toc-entry level="section">Sec. 1029B. Examination period limitations,</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><enum>III</enum><header>Small Lenders Exempt from New Data and Excessive Reporting</header><section id="H722E220FF8164F9485E60E46CA41FF52"><enum>301.</enum><header>Small business loan data collection</header><text display-inline="no-display-inline">Section 704B of the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691c-2">15 U.S.C. 1691c–2</external-xref>) is amended—</text><paragraph id="HAC8A7A607C194399BBCE713DA9BACB79"><enum>(1)</enum><text>in subsection (g), by adding at the end the following: </text><quoted-block style="OLC" id="HE8C4E4AC95CE4CA6BF27B0BBE9E81A74" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><paragraph id="HE231034D594341D0942FCBF493BA5AF9"><enum>(4)</enum><header>Compliance with covered rule</header><subparagraph id="H27A40A20CBB94F48A8ABB19922F15DA0"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">With respect to the covered rule, the Bureau shall provide a financial institution a 3-year period beginning on the date the covered rule was issued to comply with the rule.</text></subparagraph><subparagraph id="H5B6279D25D4A4D42845F0DBDDAE3E7CC"><enum>(B)</enum><header>Safe harbor</header><text display-inline="yes-display-inline">After the end of the 3-year period described under subparagraph (A), the Bureau shall provide a 2-year safe harbor to a financial institution during which the financial institution is required to comply with the covered rule but is not subject to any penalties for failure to comply with the covered rule.</text></subparagraph><subparagraph id="H13B4AB5443114957B9F81ADF9538507D"><enum>(C)</enum><header>Covered rule defined</header><text>In this paragraph, the term <quote>covered rule</quote> means the final rule of the Bureau titled <quote>Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)</quote> (88 Fed. Reg. 35150, published May 31, 2023). </text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HF426AE217AD14866B50999B66311F578"><enum>(2)</enum><text>in subsection (h)—</text><subparagraph id="H4F809E24559A48E185C683DB461E77A9"><enum>(A)</enum><text>by striking paragraph (1) and inserting the following:</text><quoted-block style="OLC" id="H0B1D8076ACEA4E2ABE8CAA33A7BC7E2E" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><paragraph id="H94FBEF4F368549D29A0291F83FF8B43D"><enum>(1)</enum><header>Financial institution</header><text display-inline="yes-display-inline">The term <term>financial institution</term> means—</text><subparagraph id="HA3053719344444F0B647C2CD4C5D433C"><enum>(A)</enum><text>any partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity that engages in any financial activity; and</text></subparagraph><subparagraph id="H2698C51A716C4E45AF47CE9C717268AC"><enum>(B)</enum><text display-inline="yes-display-inline">in each of the previous 2 calendar years originated not less than 500 credit transactions for small businesses.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="H3C4874610A6C47EF80E593BEA6C9A816"><enum>(B)</enum><text>by striking paragraph (2) and inserting the following:</text><quoted-block style="OLC" id="HD54BA9ECC29E486BBD700C689EE1A884" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><paragraph id="H277885C97ED2448FBDC7057E771891A0"><enum>(2)</enum><header>Small business</header><text display-inline="yes-display-inline">The term <term>small business</term> means any entity with gross annual revenues of $1,000,000 or less in the most recently completed fiscal year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section><enum>IV</enum><header>Bank Loan Privacy</header><section id="HC44B8F08155F4B48BD7C9FD9B8757D43"><enum>401.</enum><header>Rulemaking requirement</header><text display-inline="no-display-inline">Section 704B(e)(4) of the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691c-2">15 U.S.C. 1691c–2(e)(4)</external-xref>) is amended—</text><paragraph id="H80CA44FAD3ED488E82B43919472CB25D"><enum>(1)</enum><text>by striking <quote>The Bureau may,</quote> and inserting:</text><quoted-block style="OLC" id="H267D8D4591AE47B788EFD0DF24A67808" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><subparagraph id="HAACA90D0C93143D5B87AA5638CC94339"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Bureau may,</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HE60E8693E2F6407DA3A6313F50487589"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="HF22279343F0846B6813FA7459D82911C" display-inline="no-display-inline" changed="added" reported-display-style="italic" committee-id="HBA00"><subparagraph id="H3B31049DAB5F4FD3A76B97EBDEF27FB4"><enum>(B)</enum><header>Rulemaking requirement</header><text display-inline="yes-display-inline">The Bureau shall, before deleting or modifying data under this paragraph, issue, through advance notice and comment, a rule that includes a description of what modifications and deletions the Bureau intends to make to the data and how such modifications and deletions will advance a privacy interest. </text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>December 3, 2024Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed