[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3426 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3426

To amend the Truth in Lending Act to address certain issues related to 
       the extension of consumer credit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 24, 2012

  Mr. Merkley (for himself, Mr. Udall of New Mexico, and Mr. Durbin) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Truth in Lending Act to address certain issues related to 
       the extension of consumer credit, 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 ``Stopping Abuse and Fraud in 
Electronic Lending Act of 2012'' or the ``SAFE Lending Act of 2012''.

SEC. 2. CONSUMER CONTROL OVER BANK ACCOUNTS.

    (a) Prohibiting Unauthorized Remotely Created Checks.--Section 905 
of the Electronic Fund Transfer Act (15 U.S.C. 1693c) is amended by 
adding at the end the following:
    ``(d) Limitations on Remotely Created Checks.--
            ``(1) In general.--Subject to the limitations set forth 
        under paragraph (2) and any additional limitations that the 
        Bureau may establish, by rule, a remotely created check may 
        only be issued by a person designated in writing by the 
        consumer, such designation specifically provided in writing by 
        the consumer to the insured depository institution at which the 
        consumer maintains the account from which the check is to be 
        drawn.
            ``(2) Additional limitations.--
                    ``(A) In general.--An authorization provided under 
                paragraph (1) may be revoked at any time by the 
                consumer.
                    ``(B) Consumer financial protection laws.--No 
                payment order, including a remotely created check, may 
                be issued by any person in response to the exercise of, 
                or attempt to exercise, any rights by a consumer under 
                any Federal consumer financial law (as defined in 
                section 1002(14) of the Consumer Financial Protection 
                Act of 2010 (12 U.S.C. 5481(14))) or any other 
                provision of any law or regulation within the 
                jurisdiction of the Bureau.
            ``(3) Remotely created check defined.--For purposes of this 
        subsection, the term `remotely created check' means a check 
        (including paper and electronic checks and any other payment 
        order that the Bureau, by rule, determines is appropriately 
        covered by this subsection) that--
                    ``(A) is not created by the financial institution 
                that holds the customer account from which the check is 
                to be paid; and
                    ``(B) does not bear a signature applied, or 
                purported to be applied, by the person from whose 
                account the check is to be paid.''.
    (b) Consumer Protections for Certain One-Time Electronic Fund 
Transfers.--Section 913 of the Electronic Fund Transfer Act (15 U.S.C. 
1693k) is amended--
            (1) by inserting ``(a) In General.--'' before ``No 
        person'';
            (2) striking ``preauthorized electronic fund transfers'' 
        and inserting ``an electronic fund transfer''; and
            (3) by adding at the end the following:
    ``(b) Treatment for Electronic Fund Transfers in Credit 
Extensions.--If a consumer voluntarily agrees to repay an extension of 
small-dollar consumer credit transaction (as defined in section 140B(b) 
of the Truth in Lending Act) by means of an electronic fund transfer, 
such electronic fund transfer shall be treated as a preauthorized 
electronic fund transfer subject to the protections of this title.''.

SEC. 3. CONSISTENT APPLICATION OF LAW FOR SMALL-DOLLAR LENDING.

    Chapter 2 of the Truth in Lending Act (15 U.S.C. 1601 et seq.) is 
amended by adding at the end the following:

``SEC. 140B. CONSISTENT APPLICATION OF LAW FOR SMALL-DOLLAR LENDING.

    ``(a) In General.--Notwithstanding any other provision of law or 
any agreement between the parties to a transaction, and except to the 
extent that Federal or tribal law affords greater protection to the 
consumer, any small-dollar consumer credit transaction made over the 
Internet, telephone, facsimile, mail, electronic mail, or other 
electronic communication and any small-dollar consumer credit 
transaction conducted by an insured depository institution (as defined 
in section 3 of the Federal Deposit Insurance Act) shall comply with 
the laws of the State in which the consumer resides with respect to 
annual percentage rates, interest, fees, charges, and such other 
similar or related matters as the Bureau may, by rule, determine.
    ``(b) Definition.--As used in this section, the term `small-dollar 
consumer credit transaction' means any transaction that extends, 
facilitates, brokers, arranges, or gathers applications for credit that 
is--
            ``(1) made to a consumer in an amount of not more than 
        $5,000, or such greater amount as the Bureau may, by rule, 
        determine, such amount to be adjusted annually to reflect 
        changes in the Consumer Price Index for all urban consumers 
        published by the Department of Labor; and
            ``(2) extended pursuant to an agreement that is--
                    ``(A) other than an open-end credit plan and is 
                payable in one or more installments of less than 12 
                months (or such longer period as the Bureau may, by 
                rule, determine);
                    ``(B) an open-end credit plan in which each advance 
                is fully repayable within a defined time or in 
                connection with a defined event, or both; or
                    ``(C) such other plan as the Bureau determines, by 
                rule.''.

SEC. 4. PROHIBITION ON LEAD GENERATION AND ANONYMITY IN SMALL-DOLLAR 
              CONSUMER CREDIT TRANSACTIONS.

    Chapter 2 of the Truth in Lending Act (15 U.S.C. 1601 et seq.), as 
amended by this Act, is amended by adding at the end the following:

``SEC. 140C. PROHIBITION ON LEAD GENERATION AND ANONYMITY IN SMALL-
              DOLLAR CONSUMER CREDIT TRANSACTIONS.

    ``(a) Identification Information.--Any person engaged in the 
business of facilitating, brokering, arranging, gathering applications 
for, distributing sensitive personal financial information, or 
extending credit in connection with small-dollar consumer credit 
transactions shall prominently disclose information by which they may 
be contacted or identified, including for service of process and for 
identification of the registrant of any domain name registered or used.
    ``(b) Prohibition on Lead Generation in Small-Dollar Consumer 
Credit Transactions.--No person may engage in the business of 
facilitating, brokering, arranging, gathering applications for, or 
distributing sensitive personal financial information in connection 
with small-dollar consumer credit transactions, unless the person is 
directly extending the small-dollar consumer credit to the consumer.
    ``(c) Definitions.--For purposes of this section--
            ``(1) the term `sensitive personal financial information' 
        means the consumer's Social Security number, financial account 
        number, bank routing number, bank account number, or any 
        required security or access code that are immediately necessary 
        to permit access to the financial account of an individual; and
            ``(2) the term `small-dollar consumer credit transaction' 
        has the same meaning as in section 140B(b).
    ``(d) Rule of Construction.--
            ``(1) In general.--Nothing in this section may be 
        interpreted to limit the authority of the Bureau to further 
        restrict activities covered by this section.
            ``(2) Clarification.--It shall not be considered 
        `facilitating' in connection with small-dollar consumer credit 
        transactions to be engaged solely in--
                    ``(A) the provision of a telecommunications 
                service, or of an Internet access service or Internet 
                information location tool (as those terms are defined 
                in section 231 of the Communications Act of 1934 (47 
                U.S.C. 231)); or
                    ``(B) the transmission, storage, retrieval, 
                hosting, formatting, or translation (or any combination 
                thereof) of a communication, without selection or 
                alteration of the content of the communication, except 
                that deletion of a particular communication or material 
                made by another person in a manner consistent with 
                section 230(c) of the Communications Act of 1934 (47 
                U.S.C. 230(c)).
    ``(e) Civil Liability.--Violations of this section shall be subject 
to the civil liability provisions of section 130, and any person who 
violates this section shall be treated as a creditor for purposes of 
section 130.''.

SEC. 5. ENHANCED ENFORCEMENT AUTHORITY AGAINST CERTAIN INTERNET 
              LENDING.

    The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by 
inserting after section 108 the following:

``SEC. 108A. ENHANCED ENFORCEMENT AUTHORITY AGAINST CERTAIN INTERNET 
              LENDING.

    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Complainant.--The term `complainant' means a State 
        attorney general or State or tribal agency with enforcement 
        authority over prohibited activity who files a complaint with 
        the Bureau under subsection (d).
            ``(2) Covered offshore person.--
                    ``(A) In general.--The term `covered offshore 
                person' means a person (and if such person is not 
                known, the Internet site or other electronic 
                representation of such person, such as a telephone 
                number, text message service, or mobile application) 
                that--
                            ``(i) conducts business directed to 
                        residents of the United States;
                            ``(ii) does not have a domain name that is 
                        registered or assigned by a domain name 
                        registrar, domain name registry, or other 
                        domain name registration authority that is 
                        located within a judicial district of the 
                        United States; and
                            ``(iii) is not operated by an entity that 
                        is located within a judicial district of the 
                        United States.
                    ``(B) Business directed to residents of the united 
                states.--For purposes of making a determination under 
                subparagraph (A)(i), the Bureau may consider, among 
                other indicators, whether--
                            ``(i) the person extends, facilitates, 
                        brokers, arranges, or gathers applications for 
                        credit to persons located in the United States;
                            ``(ii) the person has reasonable measures 
                        in place to prevent its services from being 
                        accessed from or delivered to the United 
                        States; and
                            ``(iii) any prices for goods and services 
                        provided are indicated in the currency of the 
                        United States.
            ``(3) Covered onshore person.--The term `covered onshore 
        person' means a State government or an Indian tribe.
            ``(4) Covered person.--The term `covered person' means a 
        covered offshore person and covered onshore person.
            ``(5) Federal consumer financial law.--The term `Federal 
        consumer financial law' has the same meaning as in section 1002 
        of the Consumer Financial Protection Act of 2010 (12 U.S.C. 
        5481).
            ``(6) Financial transaction provider.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `financial transaction 
                provider' has the same meaning as in section 5362(4) of 
                title 31, United States Code.
                    ``(B) Exception.--The term `financial transaction 
                provider' does not include an Internet service platform 
                or an affiliate of an Internet service platform.
            ``(7) Indian tribe.--The term `Indian tribe' has the same 
        meaning as in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
            ``(8) Internet service platform.--The term `Internet 
        service platform' means an interactive digital service the 
        provider of which--
                    ``(A) does not act merely as a payment intermediary 
                between a user and a supplier of goods or services; and
                    ``(B) provides additional services to facilitate 
                interaction between users unrelated to purchases from 
                suppliers of goods and services.
            ``(9) Internet site.--The term `Internet site' means the 
        collection of digital assets, including links, indexes, or 
        pointers to digital assets, accessible through the Internet 
        that are addressed relative to a common domain name.
            ``(10) Operator.--The term `operator', when used in 
        connection with an Internet site, includes any person with 
        authority to operate the Internet site.
            ``(11) Owner.--The term `owner', when used in connection 
        with an Internet site, includes any owner of a majority 
        interest in the Internet site.
            ``(12) State consumer financial law.--The term `State 
        consumer financial law' means a provision of State law that 
        either constitutes a `State consumer financial law' as that 
        term is defined in section 5136C of title LXII of the Revised 
        Statutes of the United States (12 U.S.C. 21 et seq.), or 
        prohibits unfair or deceptive acts or practices.
    ``(b) Applicability of Section.--It shall be a violation of this 
section for a covered person to violate a Federal, State, or tribal 
consumer financial law.
    ``(c) Investigation of Violations by Bureau.--
            ``(1) In general.--The Bureau--
                    ``(A) may investigate any alleged violation of 
                subsection (b) on its own initiative; and
                    ``(B) shall--
                            ``(i) review any alleged violation of 
                        subsection (b) upon receiving a complaint filed 
                        under subsection (d); and
                            ``(ii) adjudicate and otherwise investigate 
                        and respond to such complaint, as appropriate.
            ``(2) Consultations.--In taking action under paragraph (1), 
        the Bureau shall, as the Bureau determines appropriate, consult 
        with and seek advice and information from the Attorney General 
        of the United States, the Federal Trade Commission, the 
        International Trade Commission (in any case involving a covered 
        offshore person), the Bureau of Indian Affairs (in the case of 
        matters involving an Indian tribe), federally recognized Indian 
        tribes (in the case of rulemakings involving Indian tribes), 
        and such other agencies and officials as the Bureau considers 
        appropriate.
            ``(3) Limitation on investigations of domain names; consent 
        to jurisdiction.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C) and such limitations as the Bureau may, by rule, 
                determine, the Bureau shall terminate, or not initiate, 
                an investigation or adjudication under paragraph (1) 
                with respect to a covered person--
                            ``(i) if the covered person provides to the 
                        public and to the Bureau--
                                    ``(I) the name of an individual 
                                authorized to receive process on behalf 
                                of the covered person;
                                    ``(II) an address at which process 
                                may be served;
                                    ``(III) a telephone number at which 
                                the individual described in clause (i) 
                                may be contacted; and
                                    ``(IV) a statement that the covered 
                                person consents to the jurisdiction and 
                                venue of the United States district 
                                courts with respect to a violation of 
                                the relevant consumer lending laws.
                    ``(B) Acceptance of jurisdiction.--In the event of 
                the filing of any civil action in the appropriate 
                United States district court for a violation of State 
                or tribal consumer lending laws, the covered person 
                shall accept service and waive, in a timely manner, any 
                objections to jurisdiction, as set forth in the 
                statement described in subparagraph (A)(iv).
                    ``(C) Investigations.--Any limitations on 
                investigations under this paragraph shall not apply 
                if--
                            ``(i) any of the information provided by 
                        the covered person is inaccurate in any way; or
                            ``(ii) at any point, the covered person 
                        fails to respond to or abide by any order or 
                        request of the relevant court.
            ``(4) Rule of construction.--It shall not be considered a 
        violation of this section to be engaged solely in--
                    ``(A) the provision of a telecommunications 
                service, or of an Internet access service or Internet 
                information location tool (as those terms are defined 
                in section 231 of the Communications Act of 1934 (47 
                U.S.C. 231)); or
                    ``(B) the transmission, storage, retrieval, 
                hosting, formatting, or translation (or any combination 
                thereof) of a communication, without selection or 
                alteration of the content of the communication, except 
                that deletion of a particular communication or material 
                made by another person in a manner consistent with 
                section 230(c) of the Communications Act of 1934 (47 
                U.S.C. 230(c)).
    ``(d) Complaints.--
            ``(1) In general.--A complaint alleging, under oath, that a 
        covered person is in violation of subsection (b) may be filed 
        with the Bureau.
            ``(2) Notice with respect to offshore persons.--
                    ``(A) In general.--Upon filing a complaint under 
                paragraph (1), if the identity of the subject covered 
                offshore person is not known, but the Internet site or 
                other electronic representation is known, the 
                complainant shall send a notice of the violation 
                alleged in the complaint to the registrant of the 
                domain name of the Internet site (or relevant operator 
                of the electronic representation) alleged to be 
                operated or maintained in violation of subsection (b)--
                            ``(i) at the postal and e-mail addresses 
                        appearing in the applicable publicly accessible 
                        database of registrations, if any, to the 
                        extent such addresses are reasonably available;
                            ``(ii) via the postal and e-mail addresses 
                        of the registrar, registry, or other domain 
                        name registration authority that registered or 
                        assigned the domain name (or relevant 
                        electronic representation), to the extent such 
                        addresses are reasonably available; and
                            ``(iii) in any other such form as the 
                        Bureau finds necessary.
                    ``(B) Rule of construction.--For purposes of this 
                subsection, the actions described in this subparagraph 
                shall constitute service of process.
            ``(3) Identification of, and notice to, entities that may 
        be required to take action pursuant to this section.--
                    ``(A) Identification.--A complaint filed under 
                paragraph (1) shall identify any financial transaction 
                provider that may be required to take measures 
                described in subsection (g)(2) if the Bureau issues an 
                order under subsection (f) with respect to the 
                complaint and the order is served on the provider or 
                service pursuant to subsection (g)(1).
                    ``(B) Notice.--Upon filing a complaint under 
                paragraph (1), the complainant shall provide notice to 
                any financial transaction provider identified in the 
                complaint pursuant to subparagraph (A) or any 
                amendments to the complaint.
                    ``(C) Intervention.--
                            ``(i) In general.--A financial transaction 
                        provider or identified in a complaint pursuant 
                        to subparagraph (A) may intervene upon timely 
                        request filed with the Bureau in--
                                    ``(I) an investigation initiated 
                                under subsection (c) pursuant to the 
                                complaint; or
                                    ``(II) pursuant to subsection 
                                (f)(3), an action to modify, suspend, 
                                or vacate an order issued pursuant to 
                                the complaint.
                            ``(ii) Rule of construction.--Failure to 
                        intervene under clause (i) in an investigation 
                        under subsection (c) does not preclude a 
                        financial transaction provider notified of the 
                        investigation from subsequently seeking an 
                        order to modify, suspend, or vacate an order 
                        issued by the Bureau under subsection (f).
    ``(e) Determinations.--
            ``(1) In general.--Unless waived in writing by the covered 
        person, the Bureau shall determine, with respect to each 
        investigation initiated under subsection (c) and not otherwise 
        terminated subject to the provisions of this section, whether 
        the covered person under investigation is in violation of 
        subsection (b).
            ``(2) Effective date.--A determination made under paragraph 
        (1) shall take effect on the date on which the Bureau publishes 
        the determination in the Federal Register.
            ``(3) Electronic submission of information and 
        proceedings.--The Bureau may, in making any determination under 
        this section--
                    ``(A) allow the submission of information 
                electronically; and
                    ``(B) hold hearings electronically or obtain 
                testimony or other information electronically or by 
                such means as the Bureau determines allows 
                participation in proceedings under this section at as 
                low a cost as possible to participants in the 
                proceedings.
    ``(f) Cease and Desist Orders.--
            ``(1) In general.--If the Bureau determines under 
        subsection (e) that a covered person is in violation of 
        subsection (b), in addition to any actions which the Bureau may 
        otherwise take, the Bureau may--
                    ``(A) issue an order to cease and desist from the 
                violation of subsection (b) to the covered person (and 
                if the identity of the subject covered offshore person 
                is not known, to the relevant Internet site and to the 
                owner and the operator of the Internet site or relevant 
                electronic representation); and
                    ``(B) cause the order to be served on the covered 
                person.
            ``(2) Temporary and preliminary cease and desist orders.--
                    ``(A) Petition by complainant.--A complainant may 
                file with the Bureau a petition, in accordance with 
                this paragraph, for the issuance of a temporary or 
                preliminary order.
                    ``(B) Opportunity to be heard.--
                            ``(i) In general.--Before issuing a 
                        temporary or preliminary cease and desist order 
                        under this paragraph, the Bureau shall provide 
                        to any person (including any applicable 
                        Internet site or electronic representation and 
                        the owner and the operator of such Internet 
                        site or electronic representation) alleged to 
                        be in violation of subsection (b) an 
                        opportunity to be heard and to submit relevant 
                        information to the Bureau.
                            ``(ii) Electronic submission of information 
                        and proceedings.--The Bureau may provide an 
                        opportunity to be heard and to submit 
                        information under clause (i) electronically or 
                        in such other manner as the Bureau determines 
                        appropriate.
                    ``(C) Issuance of order.--If, upon receiving a 
                petition under subparagraph (A) and after providing an 
                opportunity to be heard under subparagraph (B), the 
                Bureau determines that the covered person is in 
                violation of subsection (b), in addition to any actions 
                which the Director may otherwise take, the Bureau may 
                issue a temporary or preliminary cease and desist order 
                against, and cause the order to be served on the 
                relevant person pursuant to paragraph (1).
                    ``(D) Standard for relief.--If the Bureau issues a 
                temporary or preliminary cease and desist order under 
                this paragraph, the order shall be issued in a manner 
                consistent with the provisions of rule 65 of the 
                Federal Rules of Civil Procedure, or any successor 
                thereto, relating to preliminary injunctions and 
                temporary restraining orders.
                    ``(E) Procedures for temporary cease and desist 
                order.--
                            ``(i) Expedited consideration.--Upon a 
                        showing of extraordinary circumstances by the 
                        complainant filing a petition for a temporary 
                        cease and desist order under subparagraph (A), 
                        the Bureau may make a determination with 
                        respect to the petition on an expedited basis.
                            ``(ii) Expiration of order.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), a temporary 
                                cease and desist order issued under 
                                this paragraph shall expire at a time 
                                determined by the Bureau that is not 
                                later than 14 days after the issuance 
                                of the order.
                                    ``(II) Extension of order.--The 
                                Bureau may extend a temporary cease and 
                                desist order issued under this 
                                paragraph for additional periods of not 
                                more than 14 days for good cause or 
                                with the consent of the entity against 
                                which the order is issued.
                    ``(F) Procedures for preliminary cease and desist 
                order.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the Bureau shall make a 
                        determination with respect to a petition for a 
                        preliminary cease and desist order not later 
                        than 30 days after the Bureau publishes notice 
                        of the initiation of an investigation under 
                        subsection (c) in the Federal Register.
                            ``(ii) Extensions of time for 
                        determination.--The Bureau may extend the date 
                        by which the Bureau is required to make a 
                        determination under clause (i) with respect to 
                        a petition for a preliminary cease and desist 
                        order for an additional 30 days, if the 
                        Bureau--
                                    ``(I) determines that the petition 
                                presents a more complicated case; and
                                    ``(II) publishes in the Federal 
                                Register an explanation of why the 
                                Bureau determined that the case is more 
                                complicated under subclause (I).
            ``(3) Modification or revocation of orders.--
                    ``(A) In general.--At any time after the issuance 
                of an order under this subsection, a motion to modify, 
                suspend, or vacate the order may be filed by--
                            ``(i) any covered person, bound by the 
                        order;
                            ``(ii) the owner or operator of any 
                        Internet site or electronic representation 
                        subject to the order;
                            ``(iii) any domain name registrar or 
                        registry that has registered or assigned the 
                        domain name of the Internet site subject to the 
                        order; or
                            ``(iv) a financial transaction provider on 
                        which a copy of an order has been served 
                        pursuant to paragraph (1) of subsection (g) 
                        requiring the provider or service to take 
                        action described in paragraph (2) of that 
                        subsection.
                    ``(B) Relief.--The Bureau shall modify, suspend, or 
                vacate an order, as appropriate, if the Bureau 
                determines that--
                            ``(i) the subject to the order is no 
                        longer, or never was in violation of subsection 
                        (b); or
                            ``(ii) the interests of justice require 
                        that the order be modified, suspended, or 
                        vacated.
                    ``(C) Consideration.--In making a determination 
                under subparagraph (B), the Bureau may consider whether 
                any domain name of an Internet site (or the relevant 
                electronic representation) subject to the order has 
                expired or has been re-registered by a different 
                entity.
            ``(4) Amendment of orders.--A complainant may petition the 
        Bureau to amend an order issued under this subsection if any 
        relevant Internet site or electronic representation determined 
        under subsection (e) to be in violation of subparagraph (B) is 
        accessible or has been reconstituted at a different domain 
        name.
            ``(5) Opportunity to be heard for certain entities.--Before 
        the Bureau issues an order under this subsection or modifies, 
        suspends, vacates, or amends such an order under paragraph (3) 
        or (4), a financial transaction provider that intervened 
        pursuant to subsection (d)(3) in an investigation or action 
        relating to the order shall have an opportunity to be heard 
        before the Bureau with respect to whether the Bureau should 
        issue the order and the scope of relief available under the 
        order or whether the Bureau should modify, suspend, vacate, or 
        amend the order, as the case may be.
            ``(6) Expiration of orders with respect to internet site.--
        An order issued under this subsection against an Internet site 
        (or relevant electronic representation) shall cease to have any 
        force or effect upon expiration of the registration of the 
        domain name of the Internet site (or relevant electronic 
        representation).
    ``(g) Required Actions Based on Bureau Orders.--
            ``(1) In general.--If the Bureau reasonably believes that a 
        financial transaction provider identified in a complaint 
        pursuant to subsection (d)(3), or any amendment to the 
        complaint, supplies services to the covered person that is 
        subject to the order issued under subsection (f) with respect 
        to the complaint--
                    ``(A) the Bureau may give permission to the 
                complainant to serve a copy of the order on the 
                financial transaction provider;
                    ``(B) if the Bureau gives permission to the 
                complainant under subparagraph (A), the complainant 
                shall file proof of service with the Bureau; and
                    ``(C) upon receiving a copy of the order pursuant 
                to subparagraph (A), the financial transaction provider 
                shall implement the measures described in paragraph 
                (2).
            ``(2) Measures to be implemented by financial transaction 
        providers.--
                    ``(A) In general.--Subject to subparagraph (B), a 
                financial transaction provider shall, as expeditiously 
                as is reasonable, take reasonable and technically 
                feasible measures, as expeditiously as reasonable, 
                designed to prevent or prohibit the completion of 
                payment transactions by the provider that involve 
                customers located in the United States and the covered 
                person (including the relevant Internet site or 
                electronic representation) subject to the order issued 
                under subsection (f).
                    ``(B) Limitations on measures.--A financial 
                transaction provider may not be required pursuant to 
                subparagraph (A)--
                            ``(i) to implement measures that are not 
                        commercially reasonable;
                            ``(ii) to modify services or facilities of 
                        the provider to comply with the order issued 
                        under subsection (f); or
                            ``(iii) to prevent or prohibit the 
                        completion of a payment transaction if the 
                        provider could not reasonably determine in 
                        advance whether the entity was using the 
                        Internet site subject to the order.
            ``(3) Communication with users.--A financial transaction 
        provider required to implement measures described in paragraph 
        (2) shall determine how to communicate with the users or 
        customers of the provider or service, as the case may be, with 
        respect to those measures.
            ``(4) Rules of construction.--
                    ``(A) Limitation on obligations.--A financial 
                transaction provider required to implement measures 
                described in paragraph (2) shall not be required to 
                take measures or actions in addition to the measures 
                described in paragraph (2) pursuant to this section or 
                an order issued under this section.
                    ``(B) Manner of compliance.--A financial 
                transaction provider required to implement measures 
                described in paragraph (2) shall be in compliance with 
                this subsection if the provider implements the measures 
                described in that paragraph with respect to accounts of 
                the provider, as of the date on which a copy of an 
                order is served under paragraph (1) or, if applicable, 
                the date on which the order is modified or amended 
                under paragraph (3) or (4) of subsection (f).
            ``(5) Actions pursuant to bureau order.--
                    ``(A) Immunity from civil actions.--No cause of 
                action shall lie in any court against a financial 
                transaction provider on which a copy of an order is 
                served under paragraph (1), or against any director, 
                officer, employee, or agent thereof, other than in an 
                action pursuant to subsection (h), for--
                            ``(i) any act reasonably designed to comply 
                        with this subsection or reasonably arising from 
                        the order; or
                            ``(ii) any act, failure, or inability to 
                        meet the obligations under this subsection of 
                        the provider or service if the provider or 
                        service, as the case may be, makes a good faith 
                        effort to comply with such obligations.
                    ``(B) Immunity from liability.--A financial 
                transaction provider on which a copy of an order is 
                served under paragraph (1), and any director, officer, 
                employee, or agent thereof, shall not be liable to any 
                person for any acts reasonably designed to comply with 
                this subsection or reasonably arising from the order, 
                other than in an action pursuant to subsection (h).
                    ``(C) Immunity from actions of third parties.--An 
                action taken by a third party to circumvent any 
                measures implemented pursuant to an order served on a 
                financial transaction provider under paragraph (1) may 
                not be used by any person in any claim or cause of 
                action against the provider or service, as the case may 
                be, other than in an action pursuant to subsection (h).
    ``(h) Enforcement of Orders.--
            ``(1) In general.--In order to compel compliance with this 
        section, the Bureau and any State Attorney General (or other 
        appropriate State or tribal entity) having enforcement 
        authority over prohibited activity may bring an action for 
        injunctive relief against any person subject to an order issued 
        under subsection (f) or on which such an order is served under 
        subsection (g) that fails to comply with the order.
            ``(2) Rule of construction.--The authority granted to the 
        Bureau, State, and tribal authorities under paragraph (1) shall 
        be the sole legal remedy for enforcing the obligations under 
        subsection (g) of a financial transaction provider on which an 
        order is served under paragraph (1) of that subsection.
            ``(3) Affirmative defenses.--A defendant in an action 
        commenced under paragraph (1) may establish an affirmative 
        defense by showing that the defendant does not have the 
        technical means to comply with this section without incurring 
        an unreasonable economic burden or that the order is 
        inconsistent with this section. That showing shall serve as a 
        defense only to the extent of the inability of the defendant to 
        comply or to the extent of the inconsistency.
    ``(i) Sanctions for Abuse of Process and Discovery.--The Bureau 
may, by rule, prescribe sanctions for abuse of process in a manner 
consistent with the provisions of rule 11 and rule 37 of the Federal 
Rules of Civil Procedure.
    ``(j) Immunity for Enforcement of Orders.--No cause of action shall 
lie in any court, no person may rely on any claim or cause of action, 
and no liability for damages to any person shall be granted, against a 
financial transaction provider for taking any action pursuant to 
subsection (g)(2).
    ``(k) Savings Clause.--Nothing in this section, including 
subsection (c), may be construed to limit the authority or jurisdiction 
of the Bureau, any other Federal agency, or any State or tribe to 
review, regulate, investigate, enforce against, or otherwise restrict 
activities covered by this section.''.

SEC. 6. STUDIES.

    Not later than 180 days after enactment of this section, the 
Government Accountability Office (in this section referred to as the 
``GAO'') shall conduct a study regarding the availability of capital on 
reservations of Indian tribes (as such term is defined in section 4 of 
the Indian Self-Determination and Education Assistance Act (25 U.S.C. 
450b)) and the impact that small-dollar consumer credit extended 
through Internet and non-Internet means to members of Indian tribes has 
had on economic opportunity and wealth for members of Indian tribes. In 
conducting the study, the GAO shall consult, as appropriate, with the 
Bureau of Consumer Financial Protection, the Board of Governors of the 
Federal Reserve System, the Bureau of Indian Affairs, federally 
recognized Indian tribes, and community development financial 
institutions operating in Indian lands. The report shall be presented 
to the Committee on Banking, Housing, and Urban Affairs and the 
Committee on Indian Affairs of the Senate and the Committee on 
Financial Services and the Committee on Natural Resources of the House 
of Representatives.

SEC. 7. RULEMAKING.

    Not later than 1 year after the date of enactment of this Act, the 
Bureau shall adopt any final rules necessary to implement the 
provisions of this Act and the amendments made by this Act.
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