[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6139 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6139

To create a Federal charter for National Consumer Credit Corporations, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 18, 2012

  Mr. Luetkemeyer (for himself and Mr. Baca) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To create a Federal charter for National Consumer Credit Corporations, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Credit Access, Innovation, 
and Modernization Act''.

SEC. 2. FINDINGS; PURPOSE; AND INTENT.

    (a) Findings.--Congress finds the following:
            (1) Studies by the Federal Deposit Insurance Corporation 
        (FDIC), National Bureau of Economic Research, FINRA Investor 
        Education Foundation, and other credible parties have shown 
        that roughly half of all American families, including not only 
        lower and moderate income families but also a large segment of 
        middle and higher income families who have poor credit scores 
        and limited disposable incomes, are literally living paycheck-
        to-paycheck, lacking adequate savings and other resources to 
        cover unplanned expenses that frequently arise in every 
        household.
            (2) These consumers (in this Act referred to as 
        ``underserved consumers'') include those who are ``unbanked'', 
        having neither a checking or savings account at a depository 
        institution, and those who are ``underbanked'', having such an 
        account and frequently having higher incomes, while nonetheless 
        needing to rely on nondepository financial institutions for 
        short-term, small loans and other credit products and financial 
        services they desperately need, but generally cannot obtain 
        from traditional banking institutions.
            (3) Credit alternatives for underserved consumers often are 
        limited and not well suited to their particular needs and in 
        some instances lack any statutory consumer protections.
            (4) Programs by the FDIC and other parties to expand access 
        to small loans and other financial products or services for 
        underserved consumers through banking institutions have had 
        very limited success because banks generally have been unable 
        to make affordable small personal loans on a widespread, 
        commercially viable basis to these higher risk consumers, most 
        of whom may not even qualify for a loan under the high credit 
        standards regulators necessarily require insured depositories 
        to maintain.
            (5) To the extent that depository institutions offer 
        underserved consumers affordable small loans and other 
        financial products or services on a commercially viable basis, 
        they should be encouraged to do so, but it must be recognized 
        that overcoming the practical business obstacles for 
        depositories to offer such products or services appears to be 
        quite difficult at best for most depositories, and given the 
        massive scope of the short-term credit needs of such consumers, 
        depositories most likely will be unable to provide affordable 
        small loans and other financial products or services for a 
        significant number of them.
            (6) Efforts of governmental, nonprofit, and private sector 
        institutions to help underserved consumers manage their 
        personal finances more effectively through financial education 
        and counseling programs also are important and must continue, 
        but given the tremendous number of consumers who face 
        significant ongoing financial challenges, most such underserved 
        consumers are likely to be unable to overcome their financial 
        difficulties through such efforts.
            (7) Nondepository creditors historically have been 
        primarily State regulated, are not federally insured, generally 
        pose little or no systemic or taxpayer risk, typically have 
        lower operating costs and can employ less restrictive credit 
        standards than depositories, and are a major source of short-
        term, small loans and financial products or services for 
        underserved consumers, providing such consumers annually with 
        billions of dollars in credit, but the existing State-based 
        regulatory system for such nondepository creditors in many 
        cases increases the credit costs for a consumer and limits 
        available credit alternatives.
            (8) Nondepository creditors currently lack the authority 
        available to National banks to operate innovatively and 
        efficiently on a multistate or nationwide basis using a single 
        lending charter subject to strong uniform Federal lending 
        regulations instead of widely differing State laws.
            (9) Differing State licensing and lending laws often limit 
        the types of credit products or services nondepository 
        creditors may offer, prevent loans from being provided on a 
        commercially viable basis, stifle innovation, reduce 
        competition, and leave underserved consumers with a limited 
        choice of products or services that in many cases are not well 
        suited to their personal needs.
            (10) The credit costs for underserved consumers, which are 
        relatively high because of their greater credit risks, also are 
        further adversely impacted substantially by the costs creditors 
        incur in complying with the nationwide patchwork of different 
        State regulatory requirements, virtually none of which are the 
        same and can be conflicting, duplicative, and excessive.
            (11) Nondepository creditors that focus their lending on 
        serving underserved consumers can be adequately regulated by 
        Federal statutory and regulatory provisions, and it is in the 
        National interest and will greatly benefit the millions of 
        underserved consumers who have pressing needs for better and 
        more affordable credit options for Congress to adopt 
        legislation to allow qualified nondepository creditors that 
        focus their operations primarily on serving underserved 
        consumers the option of receiving a Federal charter under which 
        they can be more innovative and operate more efficiently on a 
        nationwide basis subject to effective Federal regulation and 
        supervision without being subjected to duplicative and 
        conflicting State laws that in many cases limit product 
        innovation and choice and raise the cost of consumer credit.
            (12) Small businesses, which are vital to job creation and 
        the health of the nation's economy, also have a continuing need 
        for additional credit alternatives, and allowing federally 
        chartered nondepository creditors to offer certain financial 
        products and services to small businesses would be in the 
        national interest.
    (b) Purpose and Intent.--The purpose and intent of this Act is to--
            (1) provide underserved consumers greater access to 
        innovative, affordable, commercially viable, and better suited 
        financial products or services;
            (2) create a Federal charter for qualified nondepository 
        creditors that focus their business on meeting the credit needs 
        of underserved consumers and small businesses so that such 
        creditors can operate more efficiently and effectively under 
        uniform Federal lending standards rather than under the widely 
        varying, often conflicting, unnecessarily costly, and 
        burdensome system of State lending laws that currently apply to 
        nondepository creditors; and
            (3) require that the Comptroller promptly adopt reasonable 
        and flexible policies and procedures to ensure the approval of 
        applications for Federal charters for nondepository creditors 
        and of commercially viable financial products to be offered by 
        such creditors to underserved consumers and small businesses.

SEC. 3. NATIONAL CONSUMER CREDIT CORPORATIONS.

    (a) Federal Charter.--In accordance with the provisions of ths Act, 
and regulations prescribed pursuant to this Act, the Comptroller shall 
charter qualified nondepository creditors which shall be known as 
National Consumer Credit Corporations (hereinafter referred to as 
``Credit Corporations'') to offer financial products or services 
described in subsection (f)(1).
    (b) Application Required.--
            (1) In general.--A qualified nondepository creditor that 
        desires to obtain a Federal charter under this Act shall submit 
        an application to the Comptroller at such time, in such manner, 
        and accompanied by such information as the Comptroller may 
        require.
            (2) Deadline.--The Comptroller shall make a determination 
        as to whether an application submitted under paragraph (1) is 
        approved or denied expeditiously.
    (c) Requirements.--In seeking a Federal charter under this Act, a 
qualified nondepository creditor shall meet the following requirements:
            (1) A business plan shall be established covering at least 
        the initial 3-year period of operation as a commercially viable 
        entity with its primary business activities being to serve the 
        needs of underserved consumers and small businesses and such 
        plan shall--
                    (A) identify the intended--
                            (i) geographical market area; and
                            (ii) location of its main office;
                    (B) realistically forecast market demand, the 
                intended customer base, competition, economic 
                conditions, financial projections, and business risks;
                    (C) include a marketing plan that describes the 
                types of financial products or services such creditor 
                intends to offer, how it will market them, and how such 
                products or services are expected to be affordable for 
                underserved consumers and small businesses and 
                commercially viable for the creditor; and
                    (D) contain an acceptable plan for ensuring 
                compliance with all applicable laws and regulations, 
                and for promptly addressing complaints from such 
                consumers and businesses.
            (2) A competent and experienced management team of good 
        moral character with expertise in and a commitment to serving 
        the credit needs of underserved consumers and awareness and 
        understanding of applicable legal requirements shall be 
        established.
            (3) Adequate capital structure relative to the operational 
        and financial assumptions and business plans of the qualified 
        nondepository creditor, including the cost of utilizing 
        advanced technology and information management systems for its 
        operating and compliance needs, shall be established.
            (4) No qualified nondepository creditor shall be directly 
        or indirectly owned or controlled by any person unless--
                    (A) the person is an individual, a Federal- or 
                State-chartered depository institution, a bank holding 
                company (as defined in section 2(a) of the Bank Holding 
                Company Act of 1956 (12 U.S.C. 1841(a))), a savings and 
                loan holding company (as defined in section 10(a)(1)(D) 
                of the Home Owners' Loan Act (12 U.S.C. 
                1467a(a)(1)(D))), or a nonprofit corporation; or
                    (B) the primary business activity of the person 
                involves--
                            (i) providing financial products or 
                        services to consumers; or
                            (ii) owning or controlling persons whose 
                        primary business activity is providing 
                        financial products or services to consumers.
            (5) Any other requirements provided for under this Act or 
        in regulations prescribed by the Comptroller consistent with 
        the purposes of this Act.
    (d) Authority of National Consumer Credit Corporations.--Upon 
receiving a Federal charter pursuant to subsection (a), a Credit 
Corporation shall become, as from the date of the execution of its 
charter, a body corporate, and, as such, a National Consumer Credit 
Corporation, and in the name designated in the charter it is authorized 
to--
            (1) adopt and use a corporate seal;
            (2) have succession from the date its charter is issued 
        until such time as it be dissolved by the act of its 
        shareholders owning two-thirds of its stock, or until its 
        charter is revoked by the Comptroller, or until terminated by 
        an Act of Congress, or until its affairs are placed in the 
        hands of a receiver and finally wound up by the receiver in 
        accordance with title 11, United States Code, or other 
        applicable law;
            (3) borrow money, issue stock, and enter into contracts;
            (4) sue and be sued and complain and defend, in any court 
        of law and equity of competent jurisdiction, as fully as 
        natural persons;
            (5) elect or appoint directors, and by its board of 
        directors to appoint a president, vice president, and other 
        officers, define their duties, require bonds of them and fix 
        the penalty thereof, dismiss such officers or any of them at 
        pleasure, and appoint others to fill their places;
            (6) prescribe, by its board of directors, bylaws not 
        inconsistent with law, regulating the manner in which its stock 
        shall be transferred, its directors elected or appointed, its 
        officers appointed, its property transferred, its general 
        business conducted, and the privileges granted to it by law 
        exercised and enjoyed;
            (7) hire employees and consultants and fix their 
        compensation, define their duties, and give such persons 
        appropriate authority to carry on its business operations;
            (8) enter into joint ventures and other business 
        partnerships with other Credit Corporations, depository 
        institutions, State-chartered or licensed nondepository 
        creditors, third-party service providers and vendors, and other 
        parties to promote or facilitate providing commercially viable 
        financial products or services to underserved consumers and 
        small businesses;
            (9) contribute to community funds, or to charitable, 
        philanthropic, or benevolent instrumentalities conducive to 
        public welfare, such sums as its board of directors may deem 
        expedient and in the interests of the Credit Corporation;
            (10) invest in, or buy or lease, real estate or tangible 
        personal property, including vehicles, equipment, furnishings 
        and furniture, to be used by the Credit Corporation in 
        conducting business related operations authorized under this 
        Act;
            (11) conduct its business operations through the Internet 
        and such locations as its board of directors or duly authorized 
        officers may determine are appropriate for providing financial 
        products or services to consumers, including underserved 
        consumers and small businesses in accordance with the 
        provisions of this Act and regulations prescribed pursuant to 
        this Act;
            (12) exercise by its board of directors or duly authorized 
        officers or agents, subject to law, all such incidental, 
        implied, or reasonably necessary powers as may be appropriate 
        to carry on its corporate operations and the business of 
        providing commercially viable financial products or services to 
        consumers, including underserved consumers and small businesses 
        in accordance with the provisions of this Act and regulations 
        prescribed pursuant to this Act;
            (13) be affiliated with, or owned by, an insured depository 
        institution, nondepository creditor, nonprofit organization, or 
        other qualified entities;
            (14) acquire or merge with other Credit Corporations; and
            (15) exercise such other powers as may be provided for 
        through regulations prescribed by the Comptroller pursuant to 
        the provisions of this Act.
    (e) Duties and Responsibilities.--
            (1) Comptroller.--The Comptroller shall--
                    (A) ensure that, to the extent reasonably possible, 
                Credit Corporations primarily focus their business 
                operations on providing underserved consumers a variety 
                of affordable financial products or services that are 
                commercially viable to such Corporations, including 
                certain products or services that contain features to 
                facilitate personal savings and enhance the credit 
                record of such consumers;
                    (B) encourage and facilitate--
                            (i) innovation with respect to the 
                        financial products or services offered to 
                        underserved consumers; and
                            (ii) joint ventures and other business 
                        partnerships among Credit Corporations, insured 
                        depository institutions, other nondepository 
                        creditors, third-party service providers and 
                        vendors, and nonprofit organizations in order 
                        to ensure greater credit access for underserved 
                        consumers and small businesses;
                    (C) provide, through regulations, details on how 
                Credit Corporations should be organized, incorporated, 
                and operated;
                    (D) conduct examination and supervisory activities 
                of Credit Corporations to--
                            (i) access their internal controls and 
                        management ability;
                            (ii) evaluate their financial condition and 
                        risk profile;
                            (iii) determine if they are meeting the 
                        needs of underserved consumers and small 
                        businesses; and
                            (iv) monitor their compliance with this Act 
                        and all other applicable laws and regulations, 
                        and identify areas in which corrective action 
                        is needed; and
                    (E) consult and coordinate, as appropriate, with 
                other Federal and State regulatory agencies, including 
                State bank supervisors, to promote consistent 
                regulatory treatment of consumer and small business 
                financial products and services and to help ensure that 
                the agencies' supervisory activities, including 
                examination schedules, of Credit Corporations and 
                affiliated companies are conducted in a coordinated and 
                efficient manner.
            (2) National consumer credit corporations.--Each Credit 
        Corporation shall--
                    (A) make financial education information adopted by 
                the Comptroller available to each consumer to whom it 
                offers a financial product or service, including 
                information on how a consumer may obtain financial 
                counseling services, the benefits of following a 
                regular personal savings program, and how consumers can 
                improve their credit ratings;
                    (B) comply with all applicable Federal laws and 
                regulations, including Federal consumer financial 
                protection law requirements;
                    (C) provide account access to its customers, either 
                through a toll-free telephone number, the Internet, or 
                both, during its normal business hours;
                    (D) along with other creditors otherwise subject to 
                the Truth in Lending Act (15 U.S.C. 1601 et seq.), 
                provide, in accordance with regulations prescribed 
                pursuant to this Act, all consumers who are extended 
                credit by the Corporation or other creditors which has 
                a repayment term of 1-year or less with a clear and 
                conspicuous statement in the loan agreement that 
                discloses the true cost of the loan, including all 
                interest, fees and other loan related charges, as a 
                dollar amount and as a percentage of the principal 
                amount of the loan in lieu of the annual percentage 
                rate disclosure that otherwise would be required under 
                the Truth in Lending Act or regulations;
                    (E) report to the Comptroller such data as the 
                Comptroller may require regarding its activities, 
                including the types of financial products or services 
                provided to underserved consumers and small businesses 
                and the geographic market areas where such services are 
                offered, and data demonstrating that its business 
                activities are focused primarily on serving underserved 
                consumers and small businesses as required by this Act, 
                provided that adequate safeguards shall be adopted by 
                the Comptroller to ensure appropriate privacy and 
                confidentiality protections with respect to 
                individually identifiable personal data and proprietary 
                corporate data;
                    (F) offer--
                            (i) an underserved consumer who is unable 
                        to repay an extension of credit by such 
                        Corporation that has a loan repayment term of 
                        less than 120 days, an extended repayment plan, 
                        at no cost to the consumer, at least once in a 
                        12-month period; and
                            (ii) to the extent reasonably possible, 
                        certain financial products or services that 
                        contain features to facilitate personal savings 
                        and that could help an underserved consumer 
                        enhance their credit record if the consumer 
                        fully complies with the terms and conditions of 
                        such products or services; and
                    (G) not--
                            (i) accept consumer or commercial deposits;
                            (ii) make commercial loans, except to the 
                        extent allowed by the provisions of this Act, 
                        and regulations prescribed pursuant to this 
                        Act, with respect to small businesses;
                            (iii) make a consumer loan with a term of 
                        30 days or less; or
                            (iv) intentionally extend credit to a 
                        consumer--
                                    (I) unless the Credit Corporation 
                                has a reasonable basis for believing 
                                that the consumer can repay the credit 
                                extension;
                                    (II) if the maximum principal 
                                amount of the credit outstanding from 
                                all financial products or services 
                                authorized by the Credit Corporation to 
                                such consumer, in the case of an 
                                unsecured credit transaction, exceeds 
                                $5,000, or in the case of a secured 
                                credit transaction, $25,000, unless a 
                                higher amount is authorized by 
                                regulations prescribed by the 
                                Comptroller; or
                                    (III) if the loan terms include a 
                                prepayment penalty.
    (f) National Consumer Credit Corporation Business Activities and 
Product Approval.--
            (1) Business activities.--
                    (A) In general.--The primary business activities of 
                a Credit Corporation shall be to offer financial 
                products or services that are approved by the 
                Comptroller pursuant to this subsection to underserved 
                consumers and small businesses.
                    (B) Limitation on credit extension to small 
                businesses.--A Credit Corporation may not extend credit 
                to a small business in excess of $25,000.
            (2) Product approval.--
                    (A) In general.--A Credit Corporation shall submit 
                a detailed description of any financial product or 
                service that the Credit Corporation plans to offer to 
                underserved consumers or small businesses, including an 
                explanation of how the product or service will help 
                meet the credit and financial needs of underserved 
                consumers or small businesses and be commercially 
                viable for the Credit Corporation, and such product or 
                service shall be reviewed and approved by the 
                Comptroller or deemed approved pursuant to subparagraph 
                (C) prior to such product or service becoming available 
                in the marketplace for such consumers and businesses.
                    (B) Regulations.--The Comptroller shall prescribe 
                regulations containing standards and procedures, 
                consistent with the provisions of this Act, with 
                respect to financial product approval, conditional 
                approval, or disapproval, and establish a method for 
                expedited review of the submissions under subparagraph 
                (A), provided that such regulations shall not provide 
                for or authorize the disapproval or conditional 
                approval of a financial product or service unless the 
                Comptroller determines, based on a fair and reasonable 
                determination of the facts and circumstances regarding 
                a proposed financial product or service, that offering 
                the proposed such product or service will significantly 
                harm the interests of underserved consumers or small 
                businesses.
                    (C) Timing.--If the Comptroller has not advised a 
                Credit Corporation of its approval, conditional 
                approval, or disapproval of a product or service within 
                45 business days after a Credit Corporation makes a 
                submission under subparagraph (A), the financial 
                product or service shall be deemed approved by the 
                Comptroller and a Credit Corporation may offer it to 
                underserved consumers and small businesses, provided 
                that after a Credit Corporation has begun offering such 
                a product or service, the Comptroller, pursuant to 
                standards and procedures set forth in regulations 
                established pursuant to subparagraph (B), may require a 
                Credit Corporation to cease offering or modify such a 
                product or service in order to ensure that such product 
                will not significantly harm the interests of 
                underserved consumers or small businesses.
                    (D) Products or services approved by the 
                comptroller.--Financial products or services approved 
                by the Comptroller pursuant to this subsection for 
                underserved consumers and small businesses may also be 
                offered to other consumers and small businesses.
                    (E) Types of products or services.--The Comptroller 
                shall make an effort to approve a broad range of 
                financial products or services, including some products 
                or services that contain features to facilitate savings 
                and credit building by underserved consumers.
                    (F) Rule of construction.--Nothing in this Act 
                provides the Comptroller with the authority to regulate 
                financial products or services that a Credit 
                Corporation does not provide or offer to underserved 
                consumers or small businesses, and that are provided or 
                offered by an affiliate company or another entity with 
                which the Credit Corporation has a business 
                relationship.
    (g) National Consumer Credit Corporation Regulatory Fee.--Each 
Credit Corporation shall pay to the Comptroller an annual fee in an 
amount that the Comptroller determines is sufficient, in the aggregate 
of all such fees paid by Credit Corporations, to offset the cost to the 
Comptroller of carrying out the provisions of this Act.
    (h) Charter Suspension or Revocation.--The Comptroller, pursuant to 
procedures established in regulations prescribed by the Comptroller, 
may suspend or revoke the charter of a Credit Corporation if there has 
been a material failure by the Corporation to comply with the 
requirements set forth in the charter, provisions of this Act, or other 
applicable statutes or regulations.
    (i) Internet and Brick and Mortar Locations.--Neither the 
Comptroller nor any State or other party shall prohibit a Credit 
Corporation from conducting its business operations and providing 
financial products or services through the Internet or in office or 
retail locations it owns or leases or those owned or leased by an 
affiliated company, a joint venture, or a third-party business that the 
Credit Corporation has established a business relationship in 
connection with providing such products or services.
    (j) Usury Limit.--Neither the Comptroller, nor any governmental 
entity shall have the authority to establish, directly or indirectly, a 
usury limit or cap on the rate of interest, fees, or other charges 
applicable to an extension of credit offered a consumer or small 
business pursuant to this Act.
    (k) Relationship to Other Federal and State Laws.--
            (1) Federal law.--A Credit Corporation is subject to all 
        otherwise applicable provisions of Federal statutes and 
        regulations, including the consumer financial protection laws 
        listed under section 1002(12) of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5481(12)) and regulations 
        established pursuant to this Act.
            (2) State law.--A Credit Corporation, or an employee, 
        agent, or other business partner of a Credit Corporation, shall 
        not be subject to--
                    (A) State laws that relate to office location, 
                licensing, education, or training that apply to the 
                operations of a Credit Corporation, or its employees, 
                agents, or other business partners to the extent that 
                these operations relate to the exercise of its powers 
                or authorities under this Act and implementing 
                regulations to provide financial products and services 
                to underserved consumers and small businesses; or
                    (B) other State laws that--
                            (i) have a discriminatory effect on a 
                        Credit Corporation compared to the effect of 
                        such laws on any other depository or 
                        nondepository creditor chartered or licensed in 
                        that State;
                            (ii) consistent with the legal standard for 
                        preemption in the decision of the Supreme Court 
                        of the United States in Barnett Bank of Marion 
                        County, N.A. v. Nelson, Florida Insurance 
                        Commissioner, et al., 517 U.S. 25 (1996), 
                        prevent or significantly interfere with the 
                        exercise by a Credit Corporation of its powers, 
                        including such Corporation's ability to offer 
                        financial products approved by the Comptroller 
                        to consumers or small businesses; or
                            (iii) are preempted by any provision of 
                        Federal law.
            (3) Determination of preemption.--Any regulation or order 
        of the Comptroller or any court of competent jurisdiction may 
        make a determination that a State law prevents or significantly 
        interferes with the exercise by a Credit Corporation of its 
        powers on a case-by-case basis, in accordance with applicable 
        law.
    (l) Enforcement.--
            (1) In general.--The Comptroller may enforce in any court 
        of competent jurisdiction the provisions of this Act, 
        regulations prescribed pursuant to this Act, and cease and 
        desist or other orders or regulatory requirements imposed by 
        the Comptroller.
            (2) Action by state.--The attorney general (or the 
        equivalent thereof) of any State shall have the power to 
        investigate violations of this Act or implementing regulations 
        prescribed by the Comptroller, and may bring a civil 
        enforcement action in the name of such State against a Credit 
        Corporation in any district court of the United States in the 
        State or in State court that has jurisdiction over the 
        defendant and to secure remedies under provisions of this Act 
        or remedies otherwise provided under other law.
            (3) Consultation required.--
                    (A) Notice.--
                            (i) In general.--Before initiating any 
                        action in a court or other administrative or 
                        regulatory proceeding against any Credit 
                        Corporation as authorized by this Act to 
                        enforce any provision of this Act, including 
                        any regulation prescribed by the Comptroller, 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 Comptroller.
                            (ii) 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 the 
                        Comptroller immediately upon instituting the 
                        action or proceeding.
                            (iii) Contents of notice.--The notification 
                        required under this paragraph shall, at a 
                        minimum, describe--
                                    (I) the identity of the parties;
                                    (II) the alleged facts underlying 
                                the proceeding; and
                                    (III) 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 the Comptroller.
                    (B) Comptroller response.--In any action described 
                brought by a State attorney general or State regulator, 
                the Comptroller may--
                            (i) intervene in the action as a party; and
                            (ii) upon intervening--
                                    (I) remove the action to the 
                                appropriate United States district 
                                court, if the action was not originally 
                                brought there;
                                    (II) be heard on all matters 
                                arising in the action; and
                                    (III) appeal any order or judgment, 
                                to the same extent as any other party 
                                in the proceeding may.
            (4) Regulations.--The Comptroller shall prescribe 
        regulations to implement the requirements of this subsection 
        and, from time to time, provide guidance in order to further 
        coordinate actions with the State attorneys general and other 
        regulators.
            (5) Preservation of state authority.--No provision of this 
        Act shall be construed as modifying, limiting, or superseding 
        the operation of any provision of any enumerated Federal 
        consumer financial protection law listed under section 1002(12) 
        of the Consumer Financial Protection Act of 2010 (12 U.S.C. 
        5482(12)) and regulations prescribed pursuant to such laws that 
        relates to the authority of a State attorney general or State 
        regulator to enforce such Federal law and regulations.
    (m) Penalties.--Whoever knowingly violates any provision of this 
Act, or regulation prescribed pursuant to this Act, shall be fined not 
more than $10,000 for each day such violation occurs, and the 
Comptroller, in connection with its ongoing regulation and supervision 
program, may also establish and impose other reasonable penalties for 
violations of this Act, regulations prescribed pursuant to this Act, or 
orders or supervisory mandates, including cease and desist orders, 
issued by the Comptroller.
    (n) Reports to Congress.--Not later than 180 days after the date of 
effective date of this Act, and annually for 5 years thereafter, the 
Comptroller shall submit to Congress a report on its activities and 
progress with approving Credit Corporations pursuant to subsection (b) 
and approving financial products or services pursuant to subsection 
(f), and such reports shall include--
            (1) a descriptive summary of the actions of the Comptroller 
        during the reporting period to carry out the purposes of this 
        Act;
            (2) the number of charter applications and product approval 
        submissions received by the Comptroller;
            (3) the number of such applications and submissions that 
        were approved or disapproved, including a detailed explanation 
        for each disapproval, or are pending;
            (4) a description of any further actions the Comptroller 
        intends to undertake to--
                    (A) facilitate the chartering of qualified 
                nondepository institutions; and
                    (B) increase the number of financial products that 
                are approved to help increase competition and consumer 
                choice for underserved consumers; and
            (5) any recommendations the Comptroller may have regarding 
        other legislative measures that would improve the ability of a 
        Credit Corporation to provide additional financial products or 
        services to underserved consumers or small businesses.
    (o) Regulations.--The Comptroller shall prescribe regulations 
implementing the provisions of this Act not later than 180 days after 
the effective date of this Act.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Affiliate.--The term ``affiliate'' means any person 
        that controls, is controlled by, or is under common control 
        with another person.
            (2) Affordable.--The term ``affordable'' means that a 
        creditor has a reasonable expectation that a consumer will be 
        able to repay an extension of credit.
            (3) Commercially viable.--The term ``commercially viable'' 
        means that a reasonable economic profit is expected to be made 
        when a financial product or service is provided to a consumer 
        or small business.
            (4) Comptroller.--The term ``Comptroller'' means the 
        Comptroller of the Currency.
            (5) Consumer.--The term ``consumer'' means an individual or 
        agent, trustee, or representative acting on behalf of an 
        individual.
            (6) Control and controlled by.--The terms ``control'' and 
        ``controlled by'' mean that--
                    (A) a person directly or indirectly or acting 
                through 1 or more other persons owns, controls, or has 
                power to vote 25 per centum or more of any class of 
                voting stock of a company;
                    (B) a person controls in any manner the election of 
                a majority of the directors or trustees of a company; 
                or
                    (C) the Comptroller makes a determination, after 
                notice and opportunity for hearing, that a person 
                directly or indirectly exercises a controlling 
                influence over the management or policies of a company.
            (7) Credit.--The term ``credit'' means the right granted by 
        a person to a consumer or a small business to defer payment of 
        a debt, incur debt and defer its payment, or purchase property 
        or services and defer payment for such purchase.
            (8) Creditor.--The term ``creditor'' has the same meaning 
        as is given such term in section 103(g) of the Truth in Lending 
        Act (15 U.S.C. 1602(g)), and for purposes of this Act, shall 
        include a person who extends credit to a small business 
        pursuant to the provisions of this Act.
            (9) Extended repayment plan.--The term ``extended repayment 
        plan'' means an installment plan under which a consumer who is 
        unable to repay a credit extension on a loan with a term of 
        less than 120 days on the date due, and who complies with 
        applicable requirements established in regulations prescribed 
        by the Comptroller, may repay a creditor the outstanding 
        balance of the loan in at least 4 substantially equal payments 
        without being charged any additional interest, fees, or other 
        charges.
            (10) Financial product or service.--The term ``financial 
        product or service'' has the same meaning as is given the term 
        ``consumer financial product or service'' in section 1002(5) of 
        the Consumer Financial Protection Act of 2010 (12 U.S.C. 
        5481(5)), and for purposes of this Act, shall mean a financial 
        product or service provided to a small business.
            (11) Insured depository institution and depository 
        institution.--The terms ``insured depository institution'' and 
        ``depository institution'' (also referred to herein as 
        ``depositories'') have the same meanings as are given such 
        terms under section 3(c) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1813(c)), and for purposes of this Act, also 
        includes an ``insured credit union'' as such term is defined 
        under section 101(7) of the Federal Credit Union Act (12 U.S.C. 
        1752(7)).
            (12) Qualified nondepository creditor.--The term 
        ``qualified nondepository creditor'' means an entity that is 
        chartered or licensed by a State and offers personal loans or 
        other financial products or services to consumers or small 
        businesses, but does not accept consumer or commercial 
        deposits.
            (13) Person.--The term ``person'' means an individual, 
        partnership, company, corporation, association (incorporated or 
        unincorporated), trust, estate, cooperative organization, or 
        any other entity.
            (14) Primary business activities.--The term ``primary 
        business activities'' means that the business activities of a 
        Credit Corporation predominately involve providing financial 
        products and services approved by the Comptroller to 
        underserved consumers and small businesses.
            (15) Secured credit transaction.--The term ``secured credit 
        transaction'' means--
                    (A) a consumer credit transaction where the 
                performance of the credit obligation is secured by an 
                interest in property; and
                    (B) such transaction is recognized as secured by 
                State or Federal law.
            (16) Small business.--The term ``small business'' means a 
        business entity, including a sole proprietorship, that has less 
        than 500 full-time employees.
            (17) State.--The term ``State'' means--
                    (A) a State, territory, or possession of the United 
                States, the District of Columbia, the Commonwealth of 
                Puerto Rico, the Commonwealth of the Northern Mariana 
                Islands, Guam, American Samoa, and the United States 
                Virgin Islands; and
                    (B) federally recognized Indian tribes, as 
                published by the Secretary of the Interior pursuant to 
                section 104(a) of the Federally Recognized Indian Tribe 
                List Act of 1994 (25 U.S.C. 479a-1(a)).
            (18) Underserved consumer.--The term ``underserved 
        consumer'' means a natural person who--
                    (A) does not have a checking or savings account 
                with an insured depository institution; or
                    (B) has a deposit account with an insured 
                depository institution, but has limited or no ability 
                to obtain small personal loans or other nondepository 
                financial products or services from an insured 
                depository institution.
            (19) Unsecured credit transaction.--The term ``unsecured 
        credit transaction'' means a consumer credit transaction where 
        the performance of the credit obligation is not secured by an 
        interest in property or where the security interest is not 
        recognized by State or Federal law.

SEC. 5. CONFORMING AMENDMENT TO TILA.

    Section 104 of the Truth in Lending Act (15 U.S.C. 1603) is amended 
by adding at the end the following:
            ``(8) Credit transactions involving extensions of credit 
        with a term of 1 year or less in which the creditor provides 
        consumers in all such credit transactions with a clear and 
        conspicuous statement in the loan agreement that discloses the 
        true cost of the loan, including all interest, fees, and other 
        loan related charges, as a dollar amount and as a percentage of 
        the principal amount of the loan.''.

SEC. 6. EFFECTIVE DATE.

    This Act shall be effective 180 days after the date of the 
enactment of this Act.
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