[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10184 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 10184
To make reforms to the Bureau of Consumer Financial Protection, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 31, 2026
Mr. Barr (for himself, Mr. Hill of Arkansas, Mr. Lucas, Mr. Sessions,
Mr. Huizenga, Mrs. Wagner, Mr. Williams of Texas, Mr. Emmer, Mr.
Loudermilk, Mr. Davidson, Mr. Rose, Mr. Steil, Mr. Timmons, Mr.
Stutzman, Mr. Meuser, Mrs. Kim, Mr. Donalds, Mr. Garbarino, Mr.
Fitzgerald, Mr. Flood, Mr. Lawler, Ms. De La Cruz, Mr. Nunn of Iowa,
Mrs. McClain, Ms. Salazar, Mr. Downing, Mr. Haridopolos, Mr. Moore of
North Carolina, Mr. Norman, and Mr. Ogles) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committees on the Judiciary, Small Business, and
Oversight and Government Reform, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To make reforms to the Bureau of Consumer Financial Protection, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Consumer Financial
Protection Accountability and Reform Act of 2026''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REFORMING BUREAU GOVERNANCE
Sec. 101. Bringing the Bureau into the regular appropriations process.
Sec. 102. Consumer Financial Civil Penalty Fund.
Sec. 103. Transparency in cost-benefit analysis.
Sec. 104. Accountability to small businesses.
Sec. 105. Modernizing regulatory reviews.
Sec. 106. Bureau of Consumer Financial Protection-Inspector General
Reform.
TITLE II--RESTORING LEGAL CLARITY AND PROCEDURAL FAIRNESS
Sec. 201. Rectifying undefined descriptions of abusive acts and
practices.
Sec. 202. Limitation on use of unfair, deceptive, or abusive acts or
practices authority to circumvent statutes
of limitations.
Sec. 203. Definition of substantial injury.
Sec. 204. Restoring court authority over litigation.
Sec. 205. Clarification to the authority of the Bureau with respect to
persons regulated by a State insurance
regulator.
TITLE III--PROMOTING INNOVATION IN CONSUMER FINANCIAL MARKETS
Sec. 301. Safe harbor for small-dollar credit products.
Sec. 302. Guidance clarity statement required.
Sec. 303. GAO study on buy now pay later services.
Sec. 304. Earned wage access services.
TITLE IV--PROMOTING EFFECTIVE, PREDICTABLE SUPERVISION
Sec. 401. Asset thresholds for supervision of banks, savings
associations, and credit unions by the
Bureau of Consumer Financial Protection.
Sec. 402. Supervisory election for covered institutions.
Sec. 403. Financial regulatory coordination and accountability.
Sec. 404. Reforms to nonbank supervision.
TITLE V--PREVENTING REGULATION BY ENFORCEMENT
Sec. 501. Civil Money Penalties.
Sec. 502. Limitations on market monitoring functions.
Sec. 503. Enforcement powers of the States.
Sec. 504. Indexing of asset-based thresholds in regulations.
Sec. 505. Collecting and tracking complaints.
Sec. 506. Enhancements to small business loan privacy.
TITLE I--REFORMING BUREAU GOVERNANCE
SEC. 101. BRINGING THE BUREAU INTO THE REGULAR APPROPRIATIONS PROCESS.
Section 1017 of the Consumer Financial Protection Act of 2010 (12
U.S.C. 5497) is amended--
(1) in subsection (a)--
(A) by amending the heading of such subsection to
read as follows: ``Budget, Financial Management, and
Audit.--'';
(B) by striking paragraphs (1), (2), and (3);
(C) by redesignating paragraphs (4) and (5) as
paragraphs (1) and (2), respectively; and
(D) by striking subparagraphs (E) and (F) of
paragraph (1), as so redesignated;
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) and (e) as subsections
(b) and (c), respectively; and
(4) in subsection (c), as so redesignated--
(A) by striking paragraphs (1), (2), and (3); and
(B) in paragraph (4), by striking ``(4) Annual
report.--''.
SEC. 102. CONSUMER FINANCIAL CIVIL PENALTY FUND.
Subsection (b) of section 1017 of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5497), as so redesignated by section 101(3), is
amended--
(1) in paragraph (2)--
(A) in the first sentence, by inserting ``direct''
before ``victims''; and
(B) by striking the second sentence; and
(2) by adding at the end the following:
``(3) Treatment of excess amounts.--With respect to a civil
penalty described under paragraph (1), if the Bureau makes
payments to all of the direct victims of activities for which
that civil penalty was imposed, the Bureau shall transfer all
amounts that remain in the Civil Penalty Fund with respect to
that civil penalty to the general fund of the Treasury.''.
SEC. 103. TRANSPARENCY IN COST-BENEFIT ANALYSIS.
Section 1022(b) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5512(b)) is amended by adding at the end the following:
``(5) Additional rulemaking requirements.--
``(A) In general.--Each notice of proposed
rulemaking issued by the Bureau shall be published in
its entirety in the Federal Register and shall
include--
``(i) an identification of objectives and
key performance indicators, including--
``(I) a specification of the
primary objectives and intended effects
of the rule, balancing the need for
consumer financial protection with
access to affordable consumer financial
products and services; and
``(II) an identification of 1 or
more key performance indicators by
which the effectiveness of the rule
will be assessed during the review
under section 1022A;
``(ii) an identification of each provision
of Federal law that provides the Bureau with
statutory authority to issue the proposed
regulation, including, with respect to each
material requirement of the proposed
regulation, the statutory provision authorizing
that requirement;
``(iii) an examination of why the Bureau
must undertake the proposed regulation and why
the private market, State, local, or tribal
authorities cannot adequately address the
problem;
``(iv) an examination of whether the
proposed regulation is duplicative,
inconsistent, or incompatible with other
Federal regulations and orders;
``(v) if the proposed regulation is found
to be duplicative, inconsistent, or
incompatible with other Federal regulations and
orders, a discussion of--
``(I) why the proposed regulation
is justified;
``(II) how the proposed regulation
can coexist with the existing
regulations; and
``(III) how the Bureau plans to
reduce the regulatory burden associated
with the duplicative, inconsistent, or
incompatible proposed regulation;
``(vi) a quantitative and qualitative
assessment of all anticipated direct and
indirect costs and benefits of the proposed
regulation, including--
``(I) compliance costs for all
regulated entities, including small
businesses;
``(II) effects on economic
activity, efficiency, capital
formation, and market competition;
``(III) regulatory and
administrative costs of implementation;
``(IV) costs imposed on State,
local, and tribal entities;
``(V) effects on approval rates for
consumer financial products or
services;
``(VI) effects on access to
consumer financial products or
services;
``(VII) effects on the cost of
credit to consumers and businesses;
``(VIII) effects on the
availability, variety, and terms of
consumer financial products or
services; and
``(IX) with respect to any effect
described in subclauses (I) through
(VIII) that the Bureau determines
cannot reasonably be quantified, an
explanation of the basis for that
determination and a qualitative
assessment of such effect;
``(vii) an identification of reasonable
alternatives to the regulation, including
modification of an existing regulation;
``(viii) an analysis of the costs and
benefits, both quantitative and qualitative, of
any alternative identified pursuant to clause
(vi);
``(ix) if quantified net benefits of the
proposed action do not outweigh the quantified
net benefits of the alternatives, a
justification of the regulation;
``(x) if quantified benefits identified
pursuant to clause (v) do not outweigh the
quantified costs of the regulation, a
justification of the regulation;
``(xi) an assessment of how the burden
imposed by the regulation will be distributed;
including whether consumers, or small
businesses will be disproportionately burdened;
and
``(xii) a probability distribution of the
relevant outcomes of the proposed regulation,
created through the use of appropriate
statistical techniques.
``(B) Release of data and assumptions relied upon
in the rulemaking process.--To the greatest extent
possible, considering protections with respect to
confidential supervisory information, trade secrets,
and confidential commercial information, the Bureau
shall--
``(i) preserve and make available to the
Director of the Office of Management and Budget
any data and assumptions the Bureau relied upon
in proposing a rule; and
``(ii) make such data and assumptions
publicly available.
``(C) Rulemakings involving no material
discretion.--
``(i) In general.--The requirements of
subparagraph (A), other than the requirement
under clause (ii) of such subparagraph to
identify statutory authority, shall not apply
to a provision of a proposed regulation to the
extent the Bureau exercises no material
discretion with respect to such provision
pursuant to an express statutory requirement.
``(ii) Explanation required.--A notice of
proposed rulemaking relying on the exclusion
under this subparagraph shall identify each
provision for which the Bureau asserts that the
Bureau exercises no material discretion and the
statutory requirement giving rise to that
assertion.''.
SEC. 104. ACCOUNTABILITY TO SMALL BUSINESSES.
(a) Rulemaking Under Dodd-Frank Wall Street Reform and Consumer
Protection Act.--Section 1022(b)(2)(A) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5512(b)(2)(A)) is
amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking the semicolon at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(iii) the impact of proposed rules on
small entities, in accordance with section 609
of title 5, United States Code;''.
(b) Initial Regulatory Flexibility Analysis.--Section 603(d)(1) of
title 5, United States Code, is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(D) where the covered agency does not adopt any
alternatives described in paragraphs (1) through (4) of
subsection (c), a detailed justification of the covered
agency's determination that the relative size and
resources of small entities should have no bearing on
the rule, supported by factual, policy and legal
reasons.''.
(c) Final Regulatory Flexibility Analysis.--Section 604(a) of title
5, United States Code, is amended by amending the second paragraph (6)
to read as follows:
``(7) for a covered agency, as defined in section
609(d)(2), a description of the steps the agency has taken to
minimize any additional cost of credit for small entities and,
where no significant alternatives for small entities was
adopted, a detailed justification of the covered agency's
determination that the relative size and resources of small
entities should have no bearing on the rule, supported by
factual, policy and legal reasons.''.
SEC. 105. MODERNIZING REGULATORY REVIEWS.
(a) Amendment to the Consumer Financial Protection Act of 2010.--
Title X of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (12 U.S.C. 5481 et seq.) is amended by inserting after section 1022
the following:
``SEC. 1022A. ENHANCED REVIEW OF REGULATIONS.
``(a) Review of Major Rules or Orders.--
``(1) Review authority.--Notwithstanding any other
provision of law, a review of major rules or orders shall be
conducted by the OMB Director.
``(2) Timing of review.--
``(A) In general.--With respect to any major rule
or order for which compliance with such rule or order
is required on or after the date of the enactment of
this section, the OMB Director shall conduct a review
of such rule or order not later than 8 years after the
first date on which compliance with such rule or order
is required.
``(B) Retrospective review.--With respect to any
major rule or order in effect for which compliance with
such rule or order is required before the date of the
enactment of this section, the OMB Director shall
conduct a review of such rule or order not later than 8
years after the date of the enactment of this section.
``(3) Scope of review.--In conducting a review under this
subsection, the OMB Director shall--
``(A) evaluate the costs and benefits of the rule,
including--
``(i) compliance costs for covered persons
and service providers;
``(ii) the extent to which the rule
achieved the objectives of the rule;
``(iii) changes in technology, the
emergence of new market entrants, and other
market developments since the rule was issued;
``(iv) impacts on competition, innovation,
and risk-based pricing;
``(v) operational impacts on covered
persons and service providers;
``(vi) any unintended consequences
affecting consumer choice or access to credit;
and
``(vii) whether any dollar, volume, or
other thresholds appropriately tailor burdens
to entity size; and
``(B) consider the purposes, objectives, and
functions of the Bureau under section 1021.
``(4) Public input and agency response.--
``(A) Request for information.--Prior to completing
the review, the OMB Director shall seek public comment
for not less than 90 days on the factors described in
paragraph (3).
``(B) Agency response.--Not later than 120 days
after the close of the comment period, the Bureau shall
provide a written response to the OMB Director
addressing relevant comments received.
``(C) Interagency consultation.--
``(i) In general.--In conducting a review
under this subsection, the OMB Director shall
consult with--
``(I) the Board of Governors of the
Federal Reserve System;
``(II) the Federal Deposit
Insurance Corporation;
``(III) the Office of the
Comptroller of the Currency;
``(IV) the Federal Trade
Commission;
``(V) if the Bureau conducted a
small business review panel for the
major rule or order, the Small Business
Administration; and
``(VI) any other agency that the
OMB Director determines relevant to the
major rule or order.
``(ii) Public access to topics discussed.--
After consulting with the agencies pursuant to
clause (i), the OMB Director shall publish on a
public website a document which describes the
topics discussed during such consultations.
``(5) Outcome of review.--If the OMB Director determines
that a major rule or order, in whole or in part, fails to
demonstrate net benefits under the review required under this
subsection--
``(A) the Bureau shall, not later than 1 year after
such determination, issue a notice of proposed
rulemaking to amend or repeal the rule or order; or
``(B) the Bureau may petition the OMB Director for
a single extension of up to 18 months, if the rule
requires an analysis under chapter 6 of title 5, United
States Code.
``(b) Review of Non-Major Rules.--
``(1) In general.--The OMB Director shall review any non-
major rules issued by the Bureau not later than 10 years after
the first compliance date for each such rule.
``(2) Procedures.--Not later than 1 year after the date of
the enactment of this section, the OMB Director shall issue
rules that establish the procedure for the review of non-major
rules.
``(c) Exclusion of Rules in Which Bureau Exercised No Material
Discretion.--
``(1) In general.--Any rule or order for which the Bureau
has not exercised any material discretion pursuant to a
statutory requirement, as determined by the OMB Director, shall
be exempt from any review described under this section.
``(2) Public input.--Beginning on the date that is 1 year
after the date of the enactment of this section, and every 2
years thereafter, the OMB Director shall--
``(A) seek public input on the determination
described in paragraph (1); and
``(B) publish on a public website a list of rules
or orders exempt from review pursuant to this
subsection.
``(d) Severability Guidance.--Not later than 1 year after the date
of the enactment of this section, the OMB Director shall issue guidance
on how portions of rules may be considered severable between a major
rule, a non-major rule, and an excluded rule described in subsection
(c), for purposes determining if and how a rule will be reviewed,
including whether separate analyses will be conducted for severable
provisions.
``(e) Postponement of Review of Significantly Amended Rules and
Orders.--
``(1) In general.--The OMB Director may postpone any review
under this section by not later than 3 years if the OMB
Director determines that a rule or order has been significantly
amended by the Bureau during the period described--
``(A) in subsection (a)(2), with respect to major
rules or orders; and
``(B) in (b)(1), with respect to non-major rules.
``(2) Public comment.--The OMB Director shall seek public
comments in making a determination pursuant to paragraph (1).
``(f) Publication of Review Calendar.--Not later than 180 days
after the date of the enactment of this section, and every 6 months
thereafter, the OMB Director shall publish in the Federal Register and
on a publicly accessible website a schedule of anticipated reviews
under this section for the succeeding 2-year period.
``(g) Rule of Construction.--Nothing in this section shall be
construed to limit the authority of the Bureau to amend or repeal any
rule at any time under other provisions of law.
``(h) Authority To Issue Implementing Regulations.--The OMB
Director is authorized to promulgate such rules and regulations as are
necessary to carry out the provisions of this section.
``(i) Definitions.--In this section:
``(1) Key performance indicator.--The term `key performance
indicator' means an objective, measurable outcome metric
identified by the Bureau for the purpose of assessing whether a
rule achieves the rule's intended statutory and regulatory
objectives.
``(2) Major rule.--The term `major rule' has the meaning
given that term in section 804 of title 5, United States Code.
``(3) OMB director.--The term `OMB Director' means the
Director of the Office of Management and Budget.''.
(b) Conforming Amendment.--Section 1022 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5512) is amended by striking
subsection (d).
SEC. 106. BUREAU OF CONSUMER FINANCIAL PROTECTION-INSPECTOR GENERAL
REFORM.
(a) Appointment of Inspector General.--Chapter 4 of title 5, United
States Code, is amended--
(1) in section 401--
(A) in paragraph (1), by inserting ``the Bureau of
Consumer Financial Protection,'' after ``the Export-
Import Bank of the United States,''; and
(B) in paragraph (3), by inserting ``the Director
of the Bureau of Consumer Financial Protection;'' after
``the President of the Export-Import Bank of the United
States;''; and
(2) in section 415--
(A) in subsection (a)(1), by striking ``and the
Bureau of Consumer Financial Protection'';
(B) in subsection (c), by striking ``For purposes
of implementing this section, the Chairman of the Board
of Governors of the Federal Reserve System shall
appoint the Inspector General of the Board of Governors
of the Federal Reserve System and the Bureau of
Consumer Financial Protection. The Inspector General of
the Board of Governors of the Federal Reserve System
and the Bureau of Consumer Financial Protection shall
have all of the authorities and responsibilities
provided by this Act with respect to the Bureau of
Consumer Financial Protection, as if the Bureau were
part of the Board of Governors of the Federal Reserve
System.''; and
(C) in subsection (g)(3), by striking ``and the
Bureau of Consumer Financial Protection''.
(b) Requirements for the Inspector General for the Bureau of
Consumer Financial Protection.--
(1) Establishment.--Section 1011 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C. 5491) is
amended--
(A) in subsection (b)--
(i) in the subsection heading, by striking
``and Deputy Director'' and inserting ``,
Deputy Director, and Inspector General''; and
(ii) by inserting after paragraph (5) the
following:
``(6) Inspector general.--There is established the position
of the Inspector General.''; and
(B) in subsection (d), by striking ``or Deputy
Director'' each place it appears and inserting ``,
Deputy Director, or Inspector General''.
(2) Hearings.--Section 1016 of such Act is amended by
inserting after subsection (c) the following:
``(d) Additional Requirement for Inspector General.--Within a
reasonably short amount of time after each appearance by the Director
of the Bureau before the Committee on Banking, Housing, and Urban
Affairs of the Senate or the Committee on Financial Services of the
House of Representatives described in subsection (a), the Inspector
General of the Bureau shall appear, upon invitation, before such
committee regarding the reports required under subsection (b) and the
reports required under section 405 of title 5, United States Code.''.
(3) Participation in the council of inspectors general on
financial oversight.--Section 989E(a)(1) of such Act is amended
by adding at the end the following:
``(J) The Bureau of Consumer Financial
Protection.''.
(4) Deadline for appointment.--Not later than 60 days after
the date of the enactment of this Act, the President shall
appoint an Inspector General for the Bureau of Consumer
Financial Protection in accordance with section 403 of title 5,
United States Code.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on the date on which the first Inspector General of
the Bureau of Consumer Financial Protection is confirmed by the
Senate.
(2) Appointment.--The President may appoint, and the Senate
may confirm, an Inspector General of the Bureau of Consumer
Financial Protection before the amendments made by this section
take effect.
(3) Transition.--The Inspector General of the Board of
Governors of the Federal Reserve System and the Bureau of
Consumer Financial Protection shall, upon the date on which the
first Inspector General of the Bureau of Consumer Financial
Protection is confirmed by the Senate, become the Inspector
General of the Board of Governors of the Federal Reserve
System.
(4) Savings provision for pending matters.--
(A) In general.--Any audit, investigation, review,
inquiry, subpoena, request for information, or report
relating to the Bureau of Consumer Financial Protection
that, immediately before the effective date described
in paragraph (1), was pending, ongoing, issued, or
being conducted by the Inspector General of the Board
of Governors of the Federal Reserve System and the
Bureau of Consumer Financial Protection shall continue
without interruption and shall, on and after such
effective date, be deemed an action of the Inspector
General of the Bureau of Consumer Financial Protection.
(B) Continuing effect.--Any subpoena, request,
directive, determination, finding, recommendation, or
other action described in subparagraph (A) that was
validly issued or taken before the effective date
described in paragraph (1) shall remain in force and
effect according to its terms and need not be reissued,
ratified, or otherwise renewed solely by reason of the
amendments made by this section.
(C) Transfer of records and authority.--All
records, evidence, work papers, investigative
materials, rights, obligations, authorities, and
responsibilities relating to a matter described in
subparagraph (A) shall transfer to the Inspector
General of the Bureau of Consumer Financial Protection
on the effective date described in paragraph (1).
TITLE II--RESTORING LEGAL CLARITY AND PROCEDURAL FAIRNESS
SEC. 201. RECTIFYING UNDEFINED DESCRIPTIONS OF ABUSIVE ACTS AND
PRACTICES.
(a) Rulemaking Relating to Unfair, Deceptive or Abusive Acts or
Practices.--
(1) In general.--Section 1031 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5531) is amended by striking
subsection (b) and inserting the following:
``(b) Rulemaking.--
``(1) In general.--The Bureau may prescribe rules
applicable to a covered person or service provider identifying
as unlawful unfair, deceptive, or abusive acts or practices in
connection with any transaction with a consumer for a consumer
financial product or service, or the offering of a consumer
financial product or service. Rules under this section may
include requirements for the purpose of preventing such acts or
practices.
``(2) Cost benefit analysis required.--Any final rule
issued by the Bureau relating to abusive, unfair, or deceptive
acts or practices shall include a cost-benefit analysis.
``(3) Definition of abusive act or practice.--The Bureau
shall, not later than 180 days after the date of the enactment
of this subsection, issue a rule that defines the term `abusive
act or practice' for the purposes of this section.''.
(2) Opportunity for comment.--The Bureau of Consumer
Financial Protection shall, not later than 180 days after the
date of the enactment of this subsection, allow the public to
submit comments with respect to any confusion about how the
Bureau of Consumer Financial Protection uses its authority with
respect to unfair, deceptive, or abusive acts or practices.
(3) Prohibition on taking certain actions before
rulemaking.--The Bureau of Consumer Financial Protection may
not, before the effective date of the final rule required under
section 1031(b)(3) of the Consumer Financial Protection Act of
2010, commence any enforcement action, administrative
proceeding, supervisory action, or other proceeding, or
otherwise exercise the Bureau's authority under the Consumer
Financial Protection Act of 2010, on the basis that an act or
practice is abusive.
(b) No Authority To Declare an Act Unlawful Based on
Discrimination.--Section 1031 of the Consumer Financial Protection Act
of 2010 (12 U.S.C. 5531) is amended by adding at the end the following:
``(g) No Authority To Declare an Act Unlawful Based on
Discrimination.--The Bureau may not interpret the authority of the
Bureau relating to unfair, deceptive, or abusive acts and practices to
include discriminatory practices.''.
(c) Clarifying the Abusive Standard for the Bureau of Consumer
Financial Protection.--Section 1031 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5531) is amended by striking
subsection (d) and inserting the following:
``(d) Abusive.--
``(1) In general.--The Bureau shall have no authority to
declare an act or practice of a covered person or a service
provider abusive in connection with the provision of a consumer
financial product or service, unless the act or practice--
``(A) intentionally and materially interferes with
the ability of a consumer to understand a term or
condition of a consumer financial product or service;
or
``(B) takes unreasonable advantage of--
``(i) a lack of understanding by the
consumer with respect to the possible impact,
material risks, costs, or conditions of the
product or service, or the likelihood of the
risks, costs, or conditions of the product or
service negatively affecting the consumer; and
``(ii) the reasonable reliance the consumer
places on an affirmative action or
representation of such covered person or
service provider to induce such consumer to
rely on such action or representation.
``(2) Abusive actions.--
``(A) In general.--Conduct of a covered person or
service provider shall be considered abusive if--
``(i) the act or practice causes or is
likely to cause substantial injury to consumers
which is not reasonably avoidable by consumers;
and
``(ii) such substantial injury is not
outweighed by countervailing benefits to
consumers or to competition.
``(B) Presumption.--For purposes of subparagraph
(A)(i):
``(i) In general.--If an act or practice
was timely, clearly, and conspicuously
disclosed to consumers, any substantial injury
resulting from the act or practice is presumed
to be reasonably avoidable.
``(ii) Rebuttal.--The presumption described
in clause (i) may be rebutted only upon a
showing, by clear and convincing evidence,
that, notwithstanding such disclosure, the
consumer did not have a reasonable means of
avoiding the substantial injury.
``(e) Good-Faith Effort To Comply.--
``(1) In general.--The Bureau may not seek monetary relief
from a covered person or service provider under this section
unless the covered person or service provider has not
established by a preponderance of the evidence that they made a
good-faith effort to comply with the requirements of this
section.
``(2) Authority to seek legal or equitable remedies.--
``(A) In general.--The limitation described in
paragraph (1) shall not restrict the authority of the
Bureau to seek legal or equitable remedies, such as
damages and restitution, to redress an identifiable
consumer injury caused by the abusive acts or practices
of such covered person.
``(B) Rule of construction.--For purposes of
subparagraph (A), a civil money penalty described in
section 1055(c) is not a legal or equitable remedy.''.
(d) Notice and Opportunity To Cure.--Section 1031 of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5531), as amended by
subsection (b), is further amended by adding at the end the following:
``(h) Notice and Opportunity To Cure.--
``(1) In general.--If a covered person self-identifies a
potential unfair, deceptive, or abusive act or practice carried
out by such covered person, the Bureau shall, not later than 90
days after such self-identification, provide a written notice
in the form of a potential action and request for response
letter or a notice and opportunity to respond and advise letter
of the potential unfair, deceptive, or abusive act or practice
to such covered person and inform the covered person that such
person has 180 days after the date the covered person receives
such notice to cure such potential unfair, deceptive, or
abusive act before the Bureau may commence an administrative
proceeding or civil action.
``(2) Tolling of statute of limitations.--Any applicable
statute of limitations that applies to conduct under which the
Bureau has given notice and an opportunity to cure shall not
toll until--
``(A) the covered person cures the potential
abusive, unfair, or deceptive act or practice and
notifies the Bureau that such act or practice has been
cured;
``(B) the covered person notifies the Bureau that
such covered person will not cure the act or practice;
or
``(C) the 180-day period to cure ends.''.
(e) Abusive, Unfair, or Deceptive Acts or Practices Enforcement
Actions.--Section 1031 of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5531), as amended by subsection (e), is further amended by
adding at the end the following:
``(i) Venue for Unfair, Deceptive, or Abusive Acts or Practices
Enforcement Actions.--Enforcement actions brought by the Bureau under
this section shall be brought in--
``(1) the United States district court located where the
covered person has its headquarters location; or
``(2) the United States District Court for the District of
Columbia.
``(j) Enforcement Actions.--
``(1) In general.--If the Bureau brings an enforcement
action under this section, the Bureau shall state with
particularity the circumstances that the Bureau alleges
constitute a violation of this section.
``(2) Alternative claims.--If the Bureau brings an
enforcement action under this section--
``(A) claiming that an activity is unfair or
deceptive, the Bureau may not claim in the alternative
that the activity is abusive; and
``(B) claiming that an activity is abusive, the
Bureau may not claim in the alternative that the
activity is unfair or deceptive.''.
(f) Look-Back Provisions.--
(1) In general.--Subtitle B of title X of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5511 et seq.) is
amended by adding at the end the following new section:
``SEC. 1029B. EXAMINATION PERIOD LIMITATIONS.
``(a) In General.--When enforcing Federal consumer financial law,
the Bureau may not seek a civil money penalty for any violating conduct
that occurred prior to the most recent assignment of a rating under the
Uniform Interagency Consumer Compliance Rating System of the Financial
Institutions Examination Council (or any successor rating system).
``(b) Rule of Construction.--This limitation described in
subsection (a) may not be construed to restrict the ability of the
Bureau to seek other forms of legal or equitable relief available under
subparagraphs (A) through (G) of section 1055(a)(2) for any violating
conduct that occurred prior to the most recent assignment of a consumer
compliance rating.''.
(2) Clerical amendment.--The table of contents in section
1(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended by inserting after the item relating
to section 1029A the following:
``Sec. 1029B. Examination period limitations.''.
SEC. 202. LIMITATION ON USE OF UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR
PRACTICES AUTHORITY TO CIRCUMVENT STATUTES OF
LIMITATIONS.
(a) In General.--Section 1054 of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5564) is amended by adding at the end the
following:
``(h) Limitation on Actions Based on Unfair, Deceptive, or Abusive
Acts or Practices.--
``(1) In general.--Notwithstanding subsection (g), in any
action brought by the Bureau under section 1036(a)(1)(B), or by
the attorney general (or the equivalent thereof) or other
regulator of a State pursuant to section 1042, alleging an
unfair, deceptive, or abusive act or practice, the applicable
statute of limitations shall be determined in accordance with
this subsection.
``(2) Conduct subject to another federal consumer financial
law.--If conduct alleged to constitute an unfair, deceptive, or
abusive act or practice under this title is the same conduct,
or arises from the same set of operative facts, as conduct that
would constitute a violation of a Federal consumer financial
law that provides for a statute of limitations, such action may
not be brought after the expiration of the statute of
limitations applicable to such Federal consumer financial law.
``(3) Rule of construction.--Nothing in this subsection
shall be construed to--
``(A) preclude the Bureau from bringing an action
under section 1036(a)(1)(B), or preclude the attorney
general (or the equivalent thereof) or other regulator
of a State from brining an action pursuant to section
1042, based on conduct that does not constitute a
violation of another Federal consumer financial law; or
``(B) alter, extend, or toll any statute of
limitations applicable to a violation of any Federal
consumer financial law.''.
(b) Application.--Section 1054(h) of the Consumer Financial
Protection Act of 2010 shall apply to actions brought on and after the
date of enactment of this Act by--
(1) the Bureau of Consumer Financial Protection; or
(2) the attorney general (or the equivalent thereof) or
other regulator of a State pursuant to section 1042 of the
Consumer Financial Protection Act of 2010.
SEC. 203. DEFINITION OF SUBSTANTIAL INJURY.
Section 1002 of the Consumer Financial Protection Act of 2010 (12
U.S.C. 5481) is amended by adding at the end the following:
``(30) Substantial injury.--The term `substantial injury'--
``(A) means a concrete and quantifiable harm to a
consumer or a class of consumers, including--
``(i) monetary harm;
``(ii) a material risk of monetary harm
that the Bureau determines is likely to occur;
or
``(iii) a significant adverse effect on a
consumer's ability to access or use a consumer
financial product or service;
``(B) does not include--
``(i) trivial, hypothetical, or merely
speculative harms;
``(ii) emotional impact, reputational harm,
or subjective distress absent a showing of
material financial or functional impairment; or
``(iii) harms that are outweighed by
countervailing benefits to consumers or
competition;
``(C) shall be determined based on objective
evidence, which may include--
``(i) the aggregate impact on similarly
situated consumers;
``(ii) the likelihood and magnitude of
harm; and
``(iii) whether the injury results from a
practice that is systemic or isolated;
``(D) requires that a material risk of harm be
reasonably foreseeable at the time of the act or
practice that causes or is likely to cause the injury;
and
``(E) may not be established solely by a technical
violation of law, contractual term, or regulatory
requirement absent a showing of concrete and
quantifiable harm to a consumer or a class of
consumers.''.
SEC. 204. RESTORING COURT AUTHORITY OVER LITIGATION.
(a) Court Authority Over Attorneys Engaged in Litigation
Activities.--
(1) In general.--Chapter 99 of title 28, United States
Code, is amended by inserting after section 1631 the following:
``Sec. 1632. Preservation of State and Federal courts' primary and
inherent authority to regulate and oversee attorneys
engaged in litigation activities
``(a) Definitions.--In this section:
``(1) Federal agency.--The term `Federal agency' means an
agency as defined in section 551(1) of title 5.
``(2) Litigation activities.--The term `litigation
activities' means any actions by a licensed attorney or a law
firm in connection with a legal action in a court of law on
behalf of a client, including--
``(A) serving, filing, or conveying formal legal
pleadings, discovery requests, or other documents
pursuant to the applicable statute or rules of civil
procedure;
``(B) communicating in, or at the direction of, a
court of law (including in depositions or settlement
conferences) or in the enforcement of a judgment; and
``(C) any other activities engaged in as part of
the practice of law, under the laws of a State in which
the attorney is licensed or admitted to practice, that
relate to the legal action.
``(3) State.--The term `State' means the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, American Samoa,
Guam, and the United States Virgin Islands.
``(b) Limitation on Federal Agency Authority.--Notwithstanding any
other provision of law, a Federal agency does not have any supervisory,
enforcement, or regulatory authority over litigation activities of
attorneys or law firms.
``(c) No Private Right of Action.--Notwithstanding any other
provision of law, a person may not bring a civil action in a court of
the United States seeking relief for harm arising out of alleged
misconduct related to the litigation activities of an opposing attorney
or law firm.''.
(2) Clerical amendment.--The table of sections for chapter
99 of title 28, United States Code, is amended by inserting
after the item related to section 1631 the following:
``1632. Preservation of State and Federal courts' primary and inherent
authority to regulate and oversee attorneys
engaged in litigation activities.''.
(b) Conforming Amendments.--
(1) Fair debt collection practices act.--Section 803(6) of
the Fair Debt Collection Practices Act (15 U.S.C. 1692a(6)) is
amended--
(A) by redesignating subparagraph (F) as
subparagraph (G); and
(B) by inserting after subparagraph (E) the
following:
``(F) any licensed attorney or any law firm, to the
extent that such attorney or firm is engaged in
litigation activities (as such term is defined in
section 1632 of title 28, United States Code) to
collect a debt on behalf of a client; and''.
(2) Consumer financial protection act of 2010.--Section
1027(e) of the Consumer Financial Protection Act of 2010 (12
U.S.C. 5517(e)) is amended--
(A) by redesignating paragraph (3) as paragraph
(4); and
(B) by inserting after paragraph (2) the following:
``(3) Rule of construction limitation with respect to debt
collection.--Paragraph (2) shall not apply to a licensed
attorney engaging in litigation activities to collect a debt on
behalf of a client if the attorney is excluded from the term
`debt collector' under section 803 of the Fair Debt Collection
Practices Act by reason of section 803(6)(F) of such Act.''.
SEC. 205. CLARIFICATION TO THE AUTHORITY OF THE BUREAU WITH RESPECT TO
PERSONS REGULATED BY A STATE INSURANCE REGULATOR.
Section 1027(f) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5517(f)) is amended--
(1) in paragraph (2)--
(A) by striking ``Description of activities.--
Paragraph (1)'' and inserting: ``Exceptions.--
``(A) Authority.--Paragraph (1)''; and
(B) by inserting after subparagraph (A) (as added
by this Act) the following new subparagraph:
``(B) Limitation.--With respect to a person
regulated by a State insurance regulator--
``(i) if such person is offering or
providing a consumer financial product or
service, the Bureau may not enforce this title
with respect to such person to the extent such
person is engaged in the business of insurance;
and
``(ii) if such person is subject to any
enumerated consumer law or any law for which
authorities are transferred under subtitle F or
H, the authority of the Bureau to enforce such
law with respect to such person shall be
narrowly construed to the extent such person is
engaged in the business of insurance.''; and
(2) by adding at the end the following new paragraph:
``(4) Rule of construction.--The enforcement of this title
shall be broadly construed in favor of the authority of a State
insurance regulator with respect to a person regulated by a
State insurance regulator.''.
TITLE III--PROMOTING INNOVATION IN CONSUMER FINANCIAL MARKETS
SEC. 301. SAFE HARBOR FOR SMALL-DOLLAR CREDIT PRODUCTS.
(a) In General.--The Truth in Lending Act (15 U.S.C. 1601 et seq.)
is amended by inserting after section 114 the following:
``Sec. 115. Safe harbor for small-dollar credit products
``(a) In General.--If a covered entity complies with the
requirements set forth in subsections (b), (c), and (e) with respect to
the offering of a small-dollar product to a consumer, such covered
entity shall not be liable in connection with such offering of a small-
dollar product, for--
``(1) any civil money penalties from any enforcement action
brought by the Bureau, the appropriate Federal banking agency,
or the National Credit Union Administration for a violation of
this title; or
``(2) any damages or other monetary relief through a
private right of action brought under this title.
``(b) Product Structure Requirements.--
``(1) In the case of an installment loan.--If a small-
dollar credit product is structured by a covered entity as an
installment loan--
``(A) the repayment term shall be more than 45
days;
``(B) payments shall be fully amortized across more
than one payment;
``(C) rollovers into new small-dollar credit
products shall be prohibited, unless initiated by a
consumer; and
``(D) the covered entity may not issue any small-
dollar credit product to a consumer if such consumer
has a small-dollar credit product open with such
covered entity at the time such consumer applies for a
small-dollar credit product.
``(2) In the case of a line of credit.--If a small-dollar
credit product is structured by a covered entity as a line of
credit--
``(A) the repayment term for each draw shall be
more than 45 days unless a single payment is used and
the draw is not more than 10 percent of the lesser of
$3,500 (as such amount is adjusted under subsection
(f)) or 20 percent of the total amount of a consumer's
average monthly direct deposits during the preceding
six months; and
``(B) payments for each draw shall be fully
amortized across more than one payment, except in the
case of any single-payment loans.
``(3) Rules of construction.--
``(A) In general.--Nothing in this subsection may
be construed to prohibit the Bureau, a Federal banking
agency, or the National Credit Union Administration
from issuing a cease-and-desist order or restitution
order under this title against a covered entity.
``(B) Enforcement of other statutes.--Nothing in
this subsection may be construed to prohibit the
Bureau, a Federal banking agency, or the National
Credit Union Administration from enforcing any
provision of law not contained within this title
against a covered entity.
``(c) Underwriting Requirements.--When considering whether to offer
a small-dollar credit product to a specific consumer, a covered
entity--
``(1) shall use sound underwriting processes; and
``(2) may analyze internal or external data sources,
including consumer deposit account activity, to assess the
creditworthiness of a consumer.
``(d) Rule of Construction.--Nothing in this title may be construed
to prohibit a covered entity from offering a small-dollar product that
does not comply with the safe harbor requirements set forth under this
section.
``(e) Additional Limitations and Requirements.--
``(1) Balloon payments.--No payment required in association
with a small-dollar credit product offered by a covered entity
may be greater than double the amount of any other payment
required in association with such product.
``(2) Disclosures.--Each covered entity that offers a
small-dollar credit product shall comply with all disclosure
requirements set forth by this title.
``(3) Penalties.--A covered entity may not impose any
prepayment penalty in connection with a small-dollar credit
product.
``(4) Transfer of amounts.--Amounts made available to a
consumer through a small-dollar credit product offered by a
covered entity shall be disbursed to the account of such
consumer by such covered entity not later than 5 days after the
approval of the consumer for the small-dollar credit product.
``(f) Inflation Adjustment.--
``(1) In general.--Beginning on January 1, 2028, and
annually thereafter, the Bureau shall increase the dollar
amount specified in subsections (b)(2)(A) and (g)(5) by the
annual percentage increase, if any, in the Consumer Price Index
for All Urban Consumers published by the Bureau of Labor
Statistics.
``(2) Base period.--The increase required under paragraph
(1) shall be determined using calendar year 2026 as the base
period.
``(3) Rounding.--Any amount increased under paragraph (1)
shall be rounded to the nearest $100.
``(4) Publication.--The Bureau shall publish each increased
dollar amount in the Federal Register not later than 60 days
before the date on which such increased amount takes effect.
``(g) Definitions.--In this section:
``(1) Covered entity.--The term `covered entity' means--
``(A) an insured depository institution;
``(B) an insured credit union;
``(C) a third party with whom an insured depository
institution has contracted for products or services
related to origination, servicing, or administrative
management of a small-dollar credit product; or
``(D) a third party with whom an insured credit
union has contracted for products or services related
to origination, servicing, or administrative management
of a small-dollar credit product.
``(2) Federal banking agency definitions.--The terms
`appropriate Federal banking agency' and `Federal banking
agency' have the meaning given those terms, respectively, in
section 3 of the Federal Deposit Insurance Act.
``(3) Insured credit union.--The term `insured credit
union' has the meaning given the term in section 101 of the
Federal Credit Union Act.
``(4) Insured depository institution.--The term `insured
depository institution' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act.
``(5) Small-dollar credit product.--The term `small-dollar
product' means a loan or line of credit with a value of $3,500
(as such amount is adjusted under subsection (f)) or less.''.
(b) Clerical Amendment.--The table of contents for chapter 1 of the
Truth in Lending Act is amended by inserting after the item relating to
section 114 the following:
``115. Safe harbor for small-dollar credit products.''.
SEC. 302. GUIDANCE CLARITY STATEMENT REQUIRED.
(a) In General.--The head of each financial agency shall include a
guidance clarity statement as described in subsection (b) on any
guidance issued by that financial agency on and after the date of the
enactment of this Act.
(b) Guidance Clarity Statement.--A guidance clarity statement
required under subsection (a) shall be displayed prominently on the
first page of the document and shall include the following: ``This
guidance does not have the force and effect of law and therefore does
not establish any rights or obligations for any person and is not
binding on the agency or the public. If this guidance suggests how
regulated entities may comply with applicable statutes or regulations,
noncompliance with this guidance does not conclusively establish a
violation of applicable law.''.
(c) Definitions.--In this section:
(1) Financial agency.--The term ``financial agency'' means
the following:
(A) The Bureau of Consumer Financial Protection.
(B) The Department of Housing and Urban
Development.
(C) The Department of the Treasury.
(D) The Federal Deposit Insurance Corporation.
(E) The Federal Housing Finance Agency.
(F) The Board of Governors of the Federal Reserve
System.
(G) The National Credit Union Administration.
(H) The Office of the Comptroller of the Currency.
(I) The Securities and Exchange Commission.
(2) Guidance.--The term ``guidance'' means a financial
agency statement of general applicability, intended to have a
future effect on the behavior of regulated parties, that sets
forth a policy on a statutory, regulatory, or technical issue,
or an interpretation of a statute or regulation, but does not
include--
(A) a rule promulgated pursuant to notice and
comment under section 553 of title 5, United States
Code;
(B) a rule exempt from rulemaking requirements
under section 553(a) of title 5, United States Code;
(C) a rule of financial agency organization,
procedure, or practice;
(D) a decision of a financial agency adjudication
under section 554 of title 5, United States Code, or
any similar statutory provision;
(E) internal guidance directed to the issuing
financial agency or other agency that is not intended
to have a substantial future effect on the behavior of
regulated parties; or
(F) internal executive branch legal advice or legal
opinions addressed to executive branch officials.
SEC. 303. GAO STUDY ON BUY NOW PAY LATER SERVICES.
(a) In General.--The Comptroller General of the United States
shall--
(1) conduct a study on buy now pay later services,
including--
(A) the nature, size, and role of the entities
offering buy now pay later services;
(B) the market share held by the primary nonbank
firms and financial institutions offering buy now pay
later services;
(C) the disclosures provided to consumers regarding
buy now pay later services, including the accessibility
and readability of such disclosures;
(D) the benefits of buy now pay later services,
including--
(i) the flexibility of payment options;
(ii) the potential for increased purchasing
power; and
(iii) competitive product offerings;
(E) the risks of buy now pay later services,
including--
(i) potential for delinquencies and
prolonged debt;
(ii) the ability of consumer reporting
agencies to accurately score buy now pay later
transactions; and
(iii) any unintended consequences for
reporting data on such services to consumer
reporting agencies;
(F) the prevalence of partnerships between entities
offering buy now pay later services and traditional
financial institutions and e-commerce platforms;
(G) the potential for fraud in buy now pay later
services;
(H) comparing the specific features, benefits, and
risks of using such services to the use of other
products, including--
(i) overall debt accumulation;
(ii) the average interest rate charged to
consumers;
(iii) the range of interest rates charged
to consumers;
(iv) the amount and type of fees charged to
consumers annually;
(v) the availability and clarity of legal
disclosures associated with such use;
(vi) consumer understanding of payment
cycles and due dates; and
(vii) delinquency and default rates; and
(I) data regarding the prevalence and rate of on-
time repayments by consumers using buy now pay later
services; and
(2) not later than 1 year after the date of the enactment
of this Act, submit to the relevant congressional committees a
report that includes the results of the study required by
paragraph (1).
(b) Definitions.--In this section:
(1) Buy now pay later service.--
(A) In general.--The term ``buy now pay later
service'' means a service offered to a consumer at the
point of sale in connection with a transaction for the
purchase of goods or services that--
(i) allows the consumer to pay for such
goods or services over a period of time;
(ii) provides for repayment in a specified
number of substantially equal periodic
installments; and
(iii) does not impose interest or a finance
charge on the consumer in connection with such
transaction.
(B) Exclusion.--The term ``buy now pay later
service'' does not include--
(i) a loan or other extension of credit
that is not made at the point of sale in
connection with a specific transaction for the
purchase of goods or services; or
(ii) financing secured by the goods
purchased or leased in the transaction.
(2) Relevant congressional committees.--The term ``relevant
congressional committees'' means--
(A) the Committee on Financial Services of the
House of Representatives; and
(B) the Committee on Banking, Housing, and Urban
Affairs of the Senate.
SEC. 304. EARNED WAGE ACCESS SERVICES.
(a) Provision of Earned Wage Access Services.--
(1) No-cost option required.--
(A) In general.--If an earned wage access provider
offers a consumer the option to receive earned wages in
exchange for a fee, such earned wage access provider
shall also offer such consumer the option to obtain the
same amount of earned wages at no cost to the consumer.
(B) Transfer time period.--If a consumer elects the
no-cost option described in subparagraph (A), the
earned wage access provider shall initiate the transfer
of earned wages to the consumer within one business day
of such election.
(C) No effect on earned wages.--A consumer's
election of the no-cost option described in
subparagraph (A) may not impact--
(i) the amount of earned wages disbursed to
such consumer;
(ii) the frequency with which such earned
wages are disbursed to such consumer; or
(iii) the consumer's eligibility to use the
provider's earned wage access services.
(2) Required disclosures.--
(A) Disclosures preceding agreement.--Each earned
wage access provider shall disclose the following
before entering into an agreement with a consumer:
(i) Any limits on access to the earned
wages a consumer may request from such
provider, including--
(I) any limits on the amount of
earned wages a consumer may request
from the provider each day, pay period,
or other time period;
(II) any limits on the frequency or
number of disbursements of earned wages
a consumer may request from the
provider each day, pay period, or other
time period; and
(III) any limits on the amount of
earned wages a consumer may request
from the provider that are based on a
determination by the provider of the
ratio between the amount of earned
wages requested by the consumer and the
total wages earned by the consumer, and
how such determination is made.
(ii) Any fees that such provider may apply,
and the amount of such fees.
(iii) A clear and conspicuous description
of how the consumer may obtain earned wages
without paying a fee or tip.
(iv) An overview of such provider's use of
tips that describes--
(I) whether such provider will
accept tips from the consumer and in
what amounts; and
(II) whether such provider will
suggest the consumer provide tips and
in what amounts.
(B) Disclosures preceding disbursement of earned
wages.--Each earned wage access provider shall disclose
the following in a clear and conspicuous manner after
approving any request from a consumer for access to
earned wages but before disbursing such earned wages to
such consumer:
(i) The account number such provider has
assigned to the consumer, if applicable.
(ii) The amount of earned wages that will
be provided to the consumer by such provider.
(iii) The total amount of any fees applied
by such provider for such transaction.
(iv) A list of any tips the consumer has
chosen to provide for such transaction.
(v) The amount that such provider expects
to receive as payment after disbursing the
earned wages, the date on which such provider
expects to receive such amount or a description
of when such provider expects to receive such
amount, and the manner in which such provider
expects to receive such amount.
(C) Additional disclosures relating to fees and
tips.--Each earned wage access provider who, during a
calendar year, has disbursed earned wages and received
a fee or tip from a consumer shall provide the consumer
ongoing access to the following disclosures:
(i) The total amount of fees and tips that
the consumer has already paid in the then-
current pay period.
(ii) The total amount of fees and tips that
the consumer has already paid in the calendar
year-to-date.
(D) Additional disclosures relating to tips.--If an
earned wage access provider solicits, charges, or
receives a tip from a consumer, such provider--
(i) shall clearly and conspicuously
disclose to the consumer, before the provider
commences the transaction to which the tip is
related, that such tip--
(I) is voluntary;
(II) is not a requirement for
receiving earned wage access services;
and
(III) will not impact--
(aa) the amount of such
earned wages;
(bb) the frequency with
which such earned wages are
disbursed to such consumer; or
(cc) the consumer's
eligibility to use the
provider's earned wage access
services;
(ii) may not state that such tip will
benefit--
(I) any specific individual; or
(II) any group of individuals other
than the provider itself; and
(iii) may describe, in general terms, the
benefits or services offered by such provider
to consumers.
(E) Changes to terms.--Each earned wage access
provider shall notify each consumer with which such
earned wage access provider has entered an agreement to
offer earned wage access services of any material
changes to the terms and conditions of service used by
such provider not less than--
(i) 30 days before such material changes
take effect; or
(ii) a shorter amount of time before such
material changes take effect, if the consumer
has consented to such shorter amount of time.
(3) Consumer attestation before receiving earned wages.--
Each earned wage access provider shall require a consumer,
prior to the first disbursement of earned wages during each
applicable pay period, to attest that the consumer has not
requested disbursement of the same earned wages from another
earned wage access provider during that pay period.
(4) Cancellation of services.--If an earned wage access
provider makes earned wage access services available to a
consumer on a recurring basis, such earned wage access
provider--
(A) shall allow such consumer to discontinue such
services if such consumer provides notice to such
earned wage access provider that such consumer desires
to discontinue such services; and
(B) may not impose any financial penalty or
cancellation charge on such consumer as a result of any
discontinuation of services.
(5) Dispute process required.--Each earned wage access
provider shall develop and implement policies and procedures to
respond to questions and complaints from consumers relating
to--
(A) unauthorized disbursement of earned wages;
(B) disbursement of earned wages in an incorrect
amount;
(C) disbursed earned wages that were not received;
(D) payment of disbursed earned wages that was not
received or was made in an incorrect amount; and
(E) fees or tips that were not authorized or were
made in an incorrect amount.
(6) Compelling payment for disbursed earned wages.--
(A) In general.--An earned wage access provider may
not seek payment for earned wages disbursed by such
provider to a consumer, including such disbursed earned
wages, or any related fees or tips, by--
(i) filing a civil suit against the
consumer;
(ii) initiating arbitration proceedings
against the consumer;
(iii) using the services of a debt
collector (as such term is defined in section
803 of the Fair Debt Collection Practices Act)
to collect amounts from the consumer; or
(iv) selling expected payment to a third-
party debt buyer for purposes of debt
collection from the consumer.
(B) Exception.--Subparagraph (A) shall not apply if
an earned wage access provider is seeking payment for
earned wages disbursed to a consumer based on
information provided by the consumer that the consumer
knew was false.
(7) Reimbursement required.--If an earned wage access
provider seeks payment of disbursed earned wages, a fee, or a
tip directly from a deposit account of a consumer, on a date
earlier than, or in an amount different from, what was
disclosed at the time of authorization and such attempt
triggers an overdraft fee or non-sufficient funds fee from the
consumer's financial institution (as defined in section 509 of
the Gramm-Leach-Bliley Act (15 U.S.C. 6809)), the earned wage
access provider shall reimburse such consumer for such fee.
(8) Additional limitations.--An earned wage access provider
may not--
(A) share any fees or tips that were received from
or charged to a consumer for earned wage access
services with the employer of such consumer;
(B) accept payment of disbursed earned wages, fees,
or tips from a consumer through a credit card of the
consumer, unless such credit card is provided to the
consumer as a part of the earned wage access service;
(C) require a consumer to pay a late fee, deferral
fee, interest, or any other penalty or charge as a
result of a failure by the consumer to pay disbursed
earned wages, fees, or tips requested or applied by
such provider; or
(D) furnish information to a consumer reporting
agency (as defined in section 603 of the Fair Credit
Reporting Act (15 U.S.C. 1681a)) about a consumer's
earned wage access services activities.
(9) Disclosure to employer.--An earned wage access provider
may disclose to an employer with which such provider has a
contract relating to earned wage access services the date and
amount of a consumer's earned wage access transactions
associated with the earned wage access services. Subject to
applicable privacy laws, a provider may disclose information
necessary to perform under a contract with an employer relating
to additional products or services.
(10) Non-discrimination.--
(A) In general.--It shall be unlawful for any
earned wage access provider to discriminate against any
consumer on the basis of race, color, religion,
national origin, sex (including on the basis of
pregnancy, childbirth, or related medical conditions),
marital status, or age when offering earned wage access
services.
(B) Definitions.--In this paragraph--
(i) the terms ``race'', ``color'',
``religion'', ``national origin'', ``sex'',
``marital status'', and ``age'' have the same
meanings, respectively, as used in section 701
of the Equal Credit Opportunity Act (15 U.S.C.
1691) and rules issued thereunder; and
(ii) the terms ``pregnancy'',
``childbirth'', and ``related medical
conditions'' have the same meanings,
respectively, as used in section 701(k) of the
Civil Rights Act of 1964 (42 U.S.C. 2000e(k)).
(11) Consumer data protections.--Each earned wage access
provider shall be deemed a ``financial institution'' for
purposes of subtitle A of title V of the Gramm-Leach-Bliley Act
(15 U.S.C. 6801 et seq.).
(12) Default tip amount.--
(A) In general.--An earned wage access provider may
not set any default tip amount greater than $0 in
connection with earned wage access services.
(B) Selection of $0 tip.--If a consumer selects a
tip amount of $0, the earned wage access provider may
not require the consumer to confirm, reconfirm, or
otherwise take any additional action with respect to
such tip selection as a condition of completing the
transaction.
(C) Rule of construction.--Nothing in this
paragraph may be construed to prohibit the provider
from requiring the consumer to confirm the final
transaction on a completion screen.
(13) Earned wage access provider attestation.--Before each
requested disbursement of earned wages for a consumer, an
earned wage access provider shall verify and attest to the
consumer that the amount to be disbursed, together with any
prior disbursements during the applicable pay period, does not
exceed the amount of earned wages actually earned and available
to the consumer for that applicable pay period.
(b) Relation to State Laws.--
(1) Preservation of state law.--Except as provided in
paragraph (2), nothing in this Act may be construed as
annulling, altering, affecting, or exempting any person from
complying with any State law, except to the extent that a State
law is inconsistent with the provisions of this Act, and then
only to the extent of the inconsistency.
(2) Preemption.--No State or political subdivision thereof
may impose, maintain, or enforce any laws, constitutions,
statutes, regulations, orders, or interpretations with respect
to earned wage access services that comply with this Act that--
(A) treat such services as credit, a loan, debt, or
a substantially similar product or service;
(B) treat a provider of such services as a
creditor, lender, or provider of a substantially
similar product or service; or
(C) prevent or significantly interfere with the
offering or provision of earned wage access services
that comply with this Act.
(3) Savings clause.--Nothing in this Act may be construed
to preempt, displace, or limit the authority of a State or
political subdivision thereof to enforce laws of general
applicability, including laws relating to fraud, deceit, unfair
or deceptive acts or practices, contracts, property, or
taxation.
(c) Rulemaking.--Not later than 180 days after the date of
enactment of this Act, the Bureau shall issue such rules as are
necessary to carry out this Act.
(d) Rule of Construction.--Earned wage access services provided in
compliance with this Act, and any fees or tips received in connection
with such services, may not be considered credit, a loan, debt, an
obligation, liability, or consumer credit, and a person providing such
services shall not be considered a creditor or lender, and such fees or
tips shall not be considered interest or a finance charge, under
Federal law.
(e) Conforming Amendments.--
(1) Consumer financial protection act of 2010.--Section
1002 of the Consumer Financial Protection Act of 2010 (12
U.S.C. 5481) is amended--
(A) in paragraph (12)--
(i) in subparagraph (Q), by striking
``and'' at the end;
(ii) in subparagraph (R), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(S) the Earned Wage Access Consumer Protection
Act.''; and
(B) in paragraph (15)(A)--
(i) by redesignating clauses (x) and (xi)
as clauses (xi) and (xii), respectively; and
(ii) by inserting after clause (ix) the
following:
``(x) providing earned wage access
services, as defined in section 2 of the Earned
Wage Access Consumer Protection Act;''.
(2) Truth in lending act.--Section 103 of the Truth in
Lending Act (15 U.S.C. 1602) is amended--
(A) in subsection (f), by striking ``defer its
payment'' and inserting ``defer its payment, but does
not include earned wage access services as defined in
the Earned Wage Access Consumer Protection Act''; and
(B) in subsection (g), by adding at the end the
following: ``The term creditor does not include earned
wage access providers as such term is defined in the
Earned Wage Access Consumer Protection Act.''.
(f) Definitions.--In this section:
(1) Bureau.--The term ``Bureau'' means the Bureau of
Consumer Financial Protection.
(2) Consumer.--The term ``consumer'' means a natural
person.
(3) Earned wages.--
(A) In general.--The term ``earned wages'' means
salary, wages, compensation, or other income that a
consumer or an employer has represented and that an
earned wage access provider has reasonably determined
have been earned or have accrued to the benefit of the
consumer in exchange for the services provided by the
consumer, but that have not yet been paid to the
consumer by an employer.
(B) Services provided.--Services provided by the
consumer include any services provided--
(i) on an hourly, project-based, piecework,
salaried, or other basis; or
(ii) when the consumer is acting as a
contractor of the employer.
(4) Earned wage access provider.--
(A) In general.--The term ``earned wage access
provider'' means a person who provides earned wage
access services to consumers.
(B) Exclusions.--The term ``earned wage access
provider'' does not include--
(i) a person who is not obligated to
provide access to earned wages as part of an
earned wage access service;
(ii) an employer that offers a portion of
salary, wages, or compensation earned by a
consumer directly to such consumer prior to a
normally scheduled pay date or as such wages
are accrued, irrespective of any scheduled
periodic pay cycle;
(iii) a financial institution (as defined
in section 509 of the Gramm-Leach-Bliley Act)
that permits a consumer to access amounts
associated with an electronic fund transfer
from the consumer's employer or a payroll
services vendor of the employer for which the
financial institution has received information
but which has not yet settled; or
(iv) a payroll service vendor in its
capacity as a facilitator of wage payments to a
consumer by an employer, exclusive of any
earned wage access services that such vendor
may provide.
(5) Earned wage access services.--The term ``earned wage
access services'' means the delivery of earned wages to a
consumer based on--
(A) employment, income, or attendance data obtained
directly or indirectly from the employer of such
consumer or a payroll service vendor, or other vendors,
contracted by the employer of such consumer; or
(B) representations made by the consumer and the
reasonable determination of the earned wages of such
consumer by an earned wage access provider, based on
information made available or accessible to the
provider by the consumer.
(6) Employer.--The term ``employer''--
(A) means a person who employs a consumer, or any
other person who is contractually obligated to pay a
consumer salary, wages, compensation, or other income
in exchange for services provided to the person or on
the person's behalf; and
(B) does not include--
(i) a customer of a person; or
(ii) a person whose obligation to pay
salary, wages, compensation, or other income to
a consumer is not based on the services
provided for or on behalf of that person.
(7) Fee.--The term ``fee'' means--
(A) a fee for delivery, or expedited delivery, of
proceeds to a consumer; or
(B) a subscription, participation, or membership
fee for earned wage access services or a group of
services that includes earned wage access services.
(8) Payroll service vendor.--The term ``payroll service
vendor'' means a vendor contracted directly or indirectly by an
employer to facilitate payment of employee wages in accordance
with Federal, State, and local law, including the Fair Labor
Standards Act of 1938, or to provide or verify employment,
income, or attendance data.
(9) Tip.--The term ``tip'' means any gratuity, donation, or
other voluntary payment that is--
(A) made by a consumer to an earned wage access
provider;
(B) provided gratuitously and without any
consequence for nonpayment;
(C) not subject to negotiation; and
(D) in an amount determined by the consumer.
(10) State.--The term ``State'' means each of the several
States, the District of Columbia, and any territory of the
United States.
TITLE IV--PROMOTING EFFECTIVE, PREDICTABLE SUPERVISION
SEC. 401. ASSET THRESHOLDS FOR SUPERVISION OF BANKS, SAVINGS
ASSOCIATIONS, AND CREDIT UNIONS BY THE BUREAU OF CONSUMER
FINANCIAL PROTECTION.
(a) In General.--Section 1025(a) of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5515(a)) is amended--
(1) by striking ``This'' and inserting the following:
``(1) Thresholds.--This'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively (and adjusting the
margins of such subparagraphs accordingly);
(3) by striking ``$10,000,000,000'' each place it appears
and inserting ``$30,000,000,000''; and
(4) by adding at the end the following:
``(2) Periodic adjustments to thresholds.--
``(A) In general.--By April 1, 2031, and the 1st
day of each subsequent 5-year period, the Bureau
shall--
``(i) increase the thresholds described in
paragraph (1) by the ratio, if greater than 1,
of the annual value of the current-dollar
United States gross domestic product, published
by the Department of Commerce, for the calendar
year preceding the year in which the adjustment
is calculated under this subsection, to the
published value of such index for the calendar
year preceding April 1, 2026; and
``(ii) publish such increase in the Federal
Register.
``(B) Rounding.--The amount of an increase
calculated under subparagraph (A) shall be rounded to
the nearest $1,000,000,000.
``(C) Effective date.--Any increase determined
under this paragraph shall take effect on January 1 of
the year immediately succeeding the calendar year in
which the increase is determined.''.
(b) Conforming Amendments.--Section 1026 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5516) is amended by amending
subsection (a) to read as follows:
``(a) Scope of Coverage.--This section shall apply to any covered
person that is an insured depository institution or an insured credit
union not described in section 1025(a).''.
SEC. 402. SUPERVISORY ELECTION FOR COVERED INSTITUTIONS.
(a) In General.--Section 1025 of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5515) is amended by adding at the end the
following:
``(f) Supervisory Election for Covered Institutions.--
``(1) Election to remain under prudential supervision.--
``(A) In general.--Notwithstanding subsection (a),
an insured depository institution or insured credit
union described in such subsection may elect to be
subject to the requirements under section 1026 instead
of this section by notifying the Bureau and the
appropriate prudential regulator of such election.
``(B) Automatic election for certain
institutions.--A covered person who becomes an insured
depository institution or insured credit union
described under subsection (a) after the date of
enactment of this subsection shall be deemed to have
made the election described in subparagraph (A).
``(2) Petition for bureau supervision.--
``(A) In general.--With respect to an insured
depository institution or insured credit union that has
made the election under paragraph (1), the Bureau may
petition the appropriate prudential regulator for the
insured depository institution or insured credit union
to terminate such election if the Bureau determines,
and notifies the appropriate prudential regulator in
writing, that--
``(i) the insured depository institution or
insured credit union presents heightened risks
of substantial injury to consumers; and
``(ii) the appropriate prudential regulator
has failed to adequately assess or address
compliance with Federal consumer financial law.
``(B) Response to petition.--Not later than 60 days
after receiving a petition under subparagraph (A), the
appropriate prudential regulator shall--
``(i) approve the petition; or
``(ii) deny the petition in writing and
include with such denial a detailed explanation
of the reasons for such denial.
``(C) Appeal of denial.--If the appropriate
prudential regulator denies a petition under
subparagraph (B)(ii), the Bureau may appeal such denial
to the Financial Stability Oversight Council, which
may, upon a vote of not fewer than two-thirds of the
voting members then serving, approve the petition.
``(3) Backup enforcement authority of the bureau.--With
respect to an insured depository institution or insured credit
union that has made the election under paragraph (1), if the
Bureau has referred a material violation of a Federal consumer
financial law to the prudential regulator under section
1026(d)(2)(A) and the prudential regulator does not, before the
end of the 120-day period beginning on the date of such
referral, take an enforcement action with respect to such
material violation, the Bureau may take an enforcement action
against the insured depository institution or insured credit
union with respect to such material violation.
``(4) Exclusion for gsibs.--This subsection shall not apply
to any affiliate of a global systemically important BHC, as
such term is defined under section 217.402 of title 12, Code of
Federal Regulations.''.
(b) Supervision of Depository Institutions.--Section 1025(b)(1)(C)
of the Consumer Financial Protection Act of 2010 (12 U.S.C.
5515(b)(1)(C)) is amended by striking ``detecting and assessing
associated risks to consumers and to markets for consumer financial
products and services'' and inserting ``detecting and assessing
associated risks of substantial injury to consumers''.
SEC. 403. FINANCIAL REGULATORY COORDINATION AND ACCOUNTABILITY.
(a) Enhanced Interagency Coordination in Rulemaking.--
(1) In general.--Section 1022(b) of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5512(b)) is amended--
(A) in paragraph (2), by amending subparagraph (B)
to read as follows:
``(B) the Bureau shall consult with the appropriate
prudential regulators and State financial regulators
and appropriate Tribal regulatory authorities, subject
to paragraph (5), or other Federal agencies prior to
proposing a rule; and''; and
(B) by adding at the end the following:
``(5) Solicitation of comments from prudential regulators
and state regulators.--
``(A) In general.--Prior to issuing a notice of
proposed rulemaking that impacts insured depository
institutions and insured credit unions, the Bureau
shall provide the proposed rule to, and accept written
comments from--
``(i) each prudential regulator;
``(ii) the Conference of State Bank
Supervisors, or a comparable organization
representing State banking regulators;
``(iii) the National Association of State
Credit Union Supervisors, or a comparable
organization representing State credit union
supervisors;
``(iv) each organization representing State
financial regulators that license providers of
consumer financial products or services; and
``(v) appropriate Tribal regulatory
authorities, or an organization representing
such authorities.
``(B) Comments.--With respect to a proposed rule
received under subparagraph (A)--
``(i) each prudential regulator shall
provide written comments to the Bureau on such
proposed rule, including on the potential
impact of the proposed rule on the safety and
soundness of insured depository institutions
and insured credit unions;
``(ii) the entities described in clauses
(ii) through (v) of subparagraph (A) are
encouraged to provide written comments to the
Bureau, to the extent the proposed rule impacts
them or the institutions they represent.
``(C) Publication of comments.--The Bureau shall
publish in the rulemaking docket all written comments
received pursuant to subparagraph (B) concurrently with
the issuance of the notice of proposed rulemaking.
``(D) Response to interagency comments.--Each
notice of proposed rulemaking issued by the Bureau
shall include a detailed, written response to any
substantive issues raised in comments submitted
pursuant to subparagraph (B), including--
``(i) a description of any changes made to
the proposed rule in response to such comments;
and
``(ii) an explanation of the Bureau's
reasons for not adopting any recommendation
made by an entity described in clauses (ii)
through (v) of subparagraph (A).
``(E) Minimum comment period.--The Bureau may not
issue a notice of proposed rulemaking until the
expiration of a period of not fewer than 60 days after
providing the proposed rule to regulators pursuant to
subparagraph (A).
``(F) Coordination with small business review.--
Nothing in this paragraph shall be construed to require
the Bureau to complete the consultation or comment
process required under this paragraph before commencing
or conducting any process required under section 609(b)
of title 5, United States Code. To the maximum extent
practicable, the Bureau shall conduct the processes
required under this paragraph and such section 609(b)
concurrently.''.
(b) Formalized Coordination for Enforcement Actions.--
(1) In general.--Subtitle E of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5561 et seq.) is amended by
adding at the end the following:
``SEC. 1059. INTERAGENCY COORDINATION ON BUREAU ENFORCEMENT ACTIONS
AGAINST DEPOSITORIES.
``(a) In General.--Prior to initiating any civil action,
administrative proceeding, or entering into any consent order against
an insured depository institution or an insured credit union, the
Bureau shall--
``(1) provide advance written notice of the contemplated
action to--
``(A) the appropriate prudential regulator; and
``(B) any relevant State regulator; and
``(2) provide such regulators with a reasonable opportunity
to provide the Bureau with views and recommendations on such
contemplated action; and
``(3) consider such views and recommendations in good faith
before undertaking such contemplated action.
``(b) Avoidance of Duplication and Conflict.--The Bureau shall, to
the maximum extent practicable--
``(1) avoid duplicative enforcement actions;
``(2) avoid remedies that conflict with actions taken by a
prudential regulator or State regulator; and
``(3) coordinate the timing and scope of any action
described in subsection (a) to minimize regulatory burden.''.
(2) Clerical amendment.--The table of contents in section
1(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended by inserting after the item relating
to section 1058 the following:
``Sec. 1059. Interagency coordination on Bureau enforcement actions
against depositories.''.
(c) Rule of Application.--Section 1059 of the Consumer Financial
Protection Act of 2010 shall apply to a civil action or administrative
proceeding that is initiated, or a consent order that is entered into,
on or after the date of enactment of this Act.
SEC. 404. REFORMS TO NONBANK SUPERVISION.
Section 1024 of the Consumer Financial Protection Act of 2010 (12
U.S.C. 5514) is amended--
(1) by striking ``risks to consumers'' each place such term
appears and inserting ``substantial injury to consumers'';
(2) in subsection (a)--
(A) in paragraph (1)(C), by inserting ``of at least
90 days'' after ``reasonable opportunity'';
(B) in paragraph (2), by adding at the end the
following: ``With respect to a rule issued by the
Bureau after the date of enactment of the Consumer
Financial Protection Accountability and Reform Act of
2026 to define covered persons subject to this section,
the Bureau shall provide a public notice and comment
period of at least 90 days with respect to the
rulemaking.''; and
(C) in paragraph (3)(A), by inserting before the
period the following: ``or to a small business concern
(as defined in section 3 of the Small Business Act)'';
(3) in subsection (b)(2), by striking ``risks posed to
consumers'' and inserting ``risk of substantial injury to
consumers''; and
(4) by adding at the end the following:
``(f) Limitation on Supervisory Authority.--With respect to a
covered person that is described in subsection (a)(1), or a service
provider thereto, the Bureau's authority under this section to require
reports from, conduct examinations of, obtain information from, or
otherwise supervise such covered person or service provider shall be
limited to activities, operations, records, personnel, systems, and
matters directly related to the offering or provision of the applicable
consumer financial product or service described in subparagraph (A),
(B), (C), (D), or (E) of subsection (a)(1) with respect to such covered
person.
``(g) Market Defined.--In this section, and other than in the
context of a geographic market, the term `market' means consumer
financial products or services that--
``(1) share the same primary consumer purpose; and
``(2) are reasonably interchangeable by consumers.''.
TITLE V--PREVENTING REGULATION BY ENFORCEMENT
SEC. 501. CIVIL MONEY PENALTIES.
(a) In General.--Section 1055(c) of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5565(c)), is amended--
(1) in paragraph (2)--
(A) in subparagraph (B), in the heading, by
striking ``Second tier'' and inserting ``First tier'';
(B) in subparagraph (C)--
(i) in the heading, by striking ``Third
tier'' and inserting ``Second tier''; and
(ii) by striking ``$1,000,000'' and
inserting ``$50,120'';
(C) by striking subparagraph (A); and
(D) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively; and
(2) in paragraph (3)--
(A) in subparagraph (D), by striking ``and'' at the
end;
(B) by redesignating subparagraph (E) as
subparagraph (F); and
(C) by inserting after subparagraph (D) the
following:
``(E) whether the person charged self-reported the
violation; and''.
(b) Rulemaking.--The Bureau of Consumer Financial Protection shall,
not later than 180 day after the date of the enactment of this section,
issue a rule that--
(1) implements the amendments made by this section; and
(2) establishes policies and procedures relating to how the
Bureau of Consumer Financial Protection will reduce civil
monetary penalties based on the presence of mitigation factors
described in section 1055(c)(3) of the Consumer Financial
Protection Act of 2010, as amended by subsection (a)(2).
(c) Civil Money Penalty Matrix.--Section 1055(c) of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5565(c)) is amended by
adding at the end the following:
``(6) Civil money penalty matrix.--The Bureau may, by rule,
establish and periodically revise a civil money penalty matrix
or schedule to promote consistency and predictability in the
assessment of civil money penalties under this subsection. Any
such matrix or schedule may take into account the factors
described in paragraph (3) and may not authorize a penalty in
excess of the applicable maximum amount specified in paragraph
(2).''.
SEC. 502. LIMITATIONS ON MARKET MONITORING FUNCTIONS.
The Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et
seq.) is amended--
(1) in section 1022(c)(4)(C), by adding at the end the
following: ``The Bureau may not use its authorities under this
paragraph, or any information obtained pursuant to this
paragraph, to initiate or in connection with any enforcement
investigation or enforcement action, or to initiate or in
connection with any supervisory examination. Information
obtained from a covered person or service provider pursuant to
this paragraph may not be made public by the Bureau.''; and
(2) in section 1026(b), by striking ``, and to assess and
detect risks to consumers and consumer financial markets''.
SEC. 503. ENFORCEMENT POWERS OF THE STATES.
Section 1042 of the Consumer Financial Protection Act (12 U.S.C.
5552) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``Except as
provided in paragraph (2)'' and inserting ``Except as
provided in paragraphs (2) and (4)''; and
(B) by adding at the end the following:
``(4) Prohibition on enforcement.--An attorney general (or
the equivalent thereof) of any State may not bring a civil
action in the name of such State in any district court of the
United States in that State or in State court that is located
in that State and that has jurisdiction over the defendant, to
enforce provisions of this title or regulations issued under
this title, if the Bureau has provided written notice to the
attorney general (or the equivalent thereof) that the Bureau
has brought or intends to bring an action to enforce this title
or regulations issued under this title against the same entity
for violations arising from the same conduct or fact pattern.
``(5) Application of limitations.--If an attorney general
(or the equivalent thereof) of any State brings a civil action
in the name of such State in any district court of the United
States in that State or in State court that is located in that
State and that has jurisdiction over the defendant, to enforce
provisions of this title or regulations issued under this title
such attorney general (or the equivalent thereof) shall be
subject to the same limitations on authorities as are applied
to the Bureau under section 1027 and section 1029.'';
(2) in subsection (b)(2)--
(A) by redesignating subparagraphs (A), (B), and
(C) as subparagraphs (B), (C), and (D), respectively;
and
(B) by striking ``the Bureau may--'' and inserting
``the Bureau may--''
``(A) notify the attorney general (or the
equivalent thereof) that the Bureau has brought or
intends to bring an action to enforce this title or
regulations issued under this title against the same
entity for violations arising from the same conduct or
fact pattern;''; and
(3) by adding at the end the following:
``(e) Rule of Construction.--Nothing in this section may be
construed to permit a State to enforce to provisions of any Federal
consumer financial laws other than the provisions of this title or
regulations issued under this title.''.
SEC. 504. INDEXING OF ASSET-BASED THRESHOLDS IN REGULATIONS.
(a) In General.--Section 1022 of the Consumer Financial Protection
Act (12 U.S.C. 5512) is amended by adding at the end the following:
``(e) Periodic Adjustment for Asset-Based Thresholds in
Regulations.--
``(1) In general.--For each asset-based threshold
established by regulation and contained in a regulation issued
by the Bureau under a Federal consumer financial law, the
Bureau shall, by rule, adjust such threshold every 5 years by
the ratio, if greater than 1, of the annual value of the
current-dollar United States gross domestic product, published
by the Department of Commerce, for the calendar year preceding
the year in which the adjustment is calculated under this
subsection, to the published value of such index for the
calendar year preceding April 1, 2026.
``(2) Rounding.--Each threshold adjustment made pursuant to
paragraph (1) shall be rounded--
``(A) to the nearest $1,000,000, for thresholds
equal to or greater than $1,000,000,000;
``(B) to the nearest $100,000, for thresholds equal
to or greater than $100,000,000 but less than
$1,000,000,000; and
``(C) to the nearest $10,000, for thresholds less
than $100,000,000.
``(3) Asset-based threshold defined.--In this subsection,
the term `asset-based threshold' means any threshold, expressed
as a dollar amount of total assets of a covered person, that
determines the applicability of a regulation issued by the
Bureau.''.
(b) Initial Identification of Thresholds.--Not later than 1 year
after the date of enactment of this Act, the Bureau of Consumer
Financial Protection shall--
(1) identify each asset-based threshold described in
section 1022(e) of the Consumer Financial Protection Act; and
(2) publish in the Federal Register a list of all such
thresholds, including the original amount of each such
threshold, the date on which such threshold was established,
and the regulation in which such threshold appears.
(c) Initial Indexing of Thresholds.--As soon as practicable after
publishing the thresholds described in subsection (b), the Bureau
shall, by rule, and subject to the rounding requirements in section
1022(e)(2) of the Consumer Financial Protection Act, adjust each such
threshold to reflect the percentage change in the Consumer Price Index
for All Urban Consumers, or any successor index, published by the
Bureau of Labor Statistics, between--
(1) the date on which the threshold was originally
established in regulation; and
(2) the date on which the Bureau publishes the list
required under subsection (b).
SEC. 505. COLLECTING AND TRACKING COMPLAINTS.
Section 1013(b)(3) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5493(b)(3)) is amended by adding at the end the following:
``(E) Consumer attestation.--
``(i) In general.--The Director shall
require, using such verification mechanisms as
the Director determines appropriate, each
person who submits a complaint to the unit
established under this paragraph to attest,
under penalty of perjury, that--
``(I) the information and
documentation provided in the complaint
is true and accurate to the best of the
consumer's knowledge;
``(II) the complaint is being
submitted directly by--
``(aa) the consumer; or
``(bb) a representative
authorized to act on the behalf
of the consumer who provides
sufficient proof of
identification and a written
document signed by the consumer
that permits the third party to
act on the behalf of the
consumer specifically as it
relates to submitting a
complaint to the Bureau; and
``(III) the consumer directly
informed the covered person who is
required to respond to complaints under
subsection (b) and (c) of section 1034
to which the complaint relates of the
issue about which the consumer is
submitting the complaint not less than
60 days before submitting the complaint
to the Bureau.
``(ii) Notification requirement.--If the
Director finds, when carrying out clause (i),
that a complaint submitted in the name of a
consumer was not submitted by such consumer or
by a representative authorized to act on the
behalf of such consumer, the Director shall to
the degree practicable--
``(I) inform the consumer in whose
name the complaint was filed that such
complaint was submitted in their name,
without their authorization; and
``(II) provide to the covered
person who is required to respond to
complaints under subsection (b) and (c)
of section 1034 to whom the complaint
relates the name of the person who
submitted the complaint without the
authorization of the consumer.
``(iii) Sufficient proof of identification
defined.--The term `sufficient proof of
identification' means information or
documentation that identifies a protected
consumer and a protected consumer's
representative and includes--
``(I) a social security number or a
copy of a social security card issued
by the Social Security Administration;
``(II) a certified or official copy
of a birth certificate issued by the
entity authorized to issue the birth
certificate; or
``(III) a copy of a driver's
license, an identification card issued
by the motor vehicle administration.
``(F) Closure of duplicative, frivolous or
unauthorized complaints.----
``(i) In general.--A covered person who is
required to respond to complaints under
subsection (b) and (c) of section 1034 that
receives a consumer complaint from the unit
established under this paragraph may, upon
reasonable determination, close such complaint
without further action if--
``(I) the complaint, as determined
by such covered person--
``(aa) is duplicative of a
previously submitted and
resolved complaint submitted by
the same consumer relating to
the same issue;
``(bb) is frivolous or
lacking a basis in fact;
``(cc) was not submitted by
the consumer or an individual
authorized to act on the behalf
of the consumer; or
``(dd) was submitted for a
fraudulent or misleading
purpose;
``(II) such covered person was not
directly informed by the consumer of
the issue about which the consumer
submitted the complaint not less than
60 days before the consumer submitted
the complaint; or
``(III) such covered person was
directly informed by the consumer of
the issue about which the consumer
submitted the complaint and such
covered person responded to such
consumer in a manner that remedied the
issue raised by the consumer; or
``(ii) Recording.--If a covered person who
is required to respond to complaints under
subsection (b) and (c) of section 1034 closes a
complaint under clause (i), such covered person
shall notify the unit established under this
paragraph of such closure and the reason for
such closure and such unit shall record such
information in the database established under
this paragraph.
``(G) Confidentiality.--
``(i) In general.--Notwithstanding any
other provision of law, the Bureau shall ensure
that narrative content included in complaints
submitted by consumers to the unit established
under this paragraph and narrative content
included in responses from covered persons who
are required to respond to complaints under
subsection (b) and (c) of section 1034 who
receive complaints from the unit established
under this paragraph remain confidential and
are not published or made publicly viewable.
``(ii) Aggregation of data.--The Bureau may
publish aggregated data about complaints
received from consumers and analyses of trends
in such complaints if such data and analyses do
not include personally identifiable information
or specific narrative content that could
reasonably be linked to an individual consumer
or covered person who is required to respond to
complaints under subsection (b) and (c) of
section 1034.''.
SEC. 506. ENHANCEMENTS TO SMALL BUSINESS LOAN PRIVACY.
Section 704B(e)(4) of the Equal Credit Opportunity Act (15 U.S.C.
1691c-2(e)(4)) is amended--
(1) by striking ``The Bureau may,'' and inserting:
``(A) In general.--The Bureau may,''; and
(2) by adding at the end the following:
``(B) Rulemaking requirement.--The Bureau shall,
before deleting or modifying data under this paragraph,
issue, through advance notice and comment, a rule that
includes a description of what modifications and
deletions the Bureau intends to make to the data and
how such modifications and deletions will advance a
privacy interest.''.
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