119 HR 10184 IH: Consumer Financial Protection Accountability and Reform Act of 2026 U.S. House of Representatives 2026-08-31 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I119th CONGRESS2d SessionH. R. 10184IN THE HOUSE OF REPRESENTATIVESAugust 31, 2026Mr. 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 concernedA BILLTo make reforms to the Bureau of Consumer Financial Protection, and for other purposes.
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.
<enum>I</enum><header>Reforming Bureau Governance</header> <section id="HE75362D4C8134BF09ED601585B9D7DFF"><enum>101.</enum><header>Bringing the Bureau into the regular appropriations process</header><text display-inline="no-display-inline">Section 1017 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5497">12 U.S.C. 5497</external-xref>) is amended—</text> <paragraph id="H2CD094323EBA4DB6B1D518023FB1A9DF"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H0C24CE0CF90E4ACD945F9D5259A71983"><enum>(A)</enum><text>by amending the heading of such subsection to read as follows: <quote><header-in-text level="subsection" style="OLC">Budget, financial management, and audit.—</header-in-text></quote>;</text></subparagraph> <subparagraph id="H9D1C0AE2BC254C13A4DBA24A298F3818"><enum>(B)</enum><text>by striking paragraphs (1), (2), and (3);</text></subparagraph> <subparagraph id="HCB715BB68B394004969A3C5B81EFCAE3"><enum>(C)</enum><text>by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively; and</text></subparagraph> <subparagraph id="H80A3AF592E84457EBD3AD50EE8E69966"><enum>(D)</enum><text>by striking subparagraphs (E) and (F) of paragraph (1), as so redesignated;</text></subparagraph></paragraph> <paragraph id="H9787326184ED49638420DF2F05D74845"><enum>(2)</enum><text>by striking subsections (b) and (c);</text></paragraph> <paragraph id="HC5C4FF094A06429790D09F1FC919D0FC"><enum>(3)</enum><text>by redesignating subsections (d) and (e) as subsections (b) and (c), respectively; and</text></paragraph> <paragraph id="H7502A23801CB46C9BE688AC62F67715B"><enum>(4)</enum><text>in subsection (c), as so redesignated—</text> <subparagraph id="H51AF6A4B964A4AA1A1182121E633E62E"><enum>(A)</enum><text>by striking paragraphs (1), (2), and (3); and</text></subparagraph> <subparagraph id="HA90B029D05C148F1A8F0CBBC5FCF9D1A"><enum>(B)</enum><text>in paragraph (4), by striking <quote>(4) <header-in-text level="paragraph" style="OLC">Annual report</header-in-text>.—</quote>.</text></subparagraph></paragraph></section> <section id="HA2BBA487C08344E7A6D3672AD08603D6" section-type="subsequent-section" display-inline="no-display-inline"><enum>102.</enum><header>Consumer Financial Civil Penalty Fund</header><text display-inline="no-display-inline">Subsection (b) of section 1017 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5497">12 U.S.C. 5497</external-xref>), as so redesignated by section 101(3), is amended—</text> <paragraph id="H95FEF9BF7E014C188ADADEF2F9785F08"><enum>(1)</enum><text>in paragraph (2)—</text> <subparagraph id="HE20DCBAB85BA410C9E8D880B7AE0033D"><enum>(A)</enum><text>in the first sentence, by inserting <quote>direct</quote> before <quote>victims</quote>; and</text></subparagraph> <subparagraph id="H95BC66B4307E42DDAF418A859BB0431B"><enum>(B)</enum><text>by striking the second sentence; and</text></subparagraph></paragraph> <paragraph id="H7DFA1CB7260544A2AFEB7A71C830520A"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H3F242E055B474D3F81F0306AD836CD58" act-name=""> <paragraph id="HEE0AA270B33D46AB86B039FFAC453733"><enum>(3)</enum><header>Treatment of excess amounts</header><text>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.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H927568755DBC479A925B3E8D3C69938E" display-inline="no-display-inline" section-type="subsequent-section"><enum>103.</enum><header>Transparency in cost-benefit analysis</header><text display-inline="no-display-inline">Section 1022(b) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5512">12 U.S.C. 5512(b)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H574302E75E14447F8C3AD6EB4F58D91C" display-inline="no-display-inline"> <paragraph id="H45C4606C561B426A92F1168A5F123BE7"><enum>(5)</enum><header>Additional rulemaking requirements</header> <subparagraph id="HE9D873F3ECE04FEBBD10B9645637713E"><enum>(A)</enum><header>In general</header><text>Each notice of proposed rulemaking issued by the Bureau shall be published in its entirety in the Federal Register and shall include—</text> <clause id="H3475CAD8660A45438C6D08A40181122E"><enum>(i)</enum><text display-inline="yes-display-inline">an identification of objectives and key performance indicators, including—</text> <subclause id="HF4BF88B3A9AD4DCCB14800277E195B5C"><enum>(I)</enum><text display-inline="yes-display-inline">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</text></subclause> <subclause id="H67A89BE32BDA494B99022039C66FDF49" commented="no"><enum>(II)</enum><text>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;</text></subclause></clause> <clause id="H19A6207312704263BDE135BDC4EEDF08"><enum>(ii)</enum><text display-inline="yes-display-inline">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;</text></clause> <clause id="H648C1019ED31405F9AA58D72B71A1C01"><enum>(iii)</enum><text>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;</text></clause> <clause id="H505C5C80F0714626BF0AD6E985B12E51"><enum>(iv)</enum><text>an examination of whether the proposed regulation is duplicative, inconsistent, or incompatible with other Federal regulations and orders;</text></clause> <clause id="H9CE7B36CC31B4A65903FF3F3109F5E1A"><enum>(v)</enum><text>if the proposed regulation is found to be duplicative, inconsistent, or incompatible with other Federal regulations and orders, a discussion of—</text> <subclause id="H5D6649D82464497DA3B77DA470D21634"><enum>(I)</enum><text>why the proposed regulation is justified;</text></subclause> <subclause id="H3D027ACD150448C2BEDA7A1A4E6E5D58"><enum>(II)</enum><text>how the proposed regulation can coexist with the existing regulations; and</text></subclause> <subclause id="H1A2485EF0C154BCCA505413831251015"><enum>(III)</enum><text>how the Bureau plans to reduce the regulatory burden associated with the duplicative, inconsistent, or incompatible proposed regulation;</text></subclause></clause> <clause id="H7A78E2BD227B4A33A0D73BAB7EACE6A3"><enum>(vi)</enum><text display-inline="yes-display-inline">a quantitative and qualitative assessment of all anticipated direct and indirect costs and benefits of the proposed regulation, including—</text> <subclause id="H4EA59161D9FF4001B43F93D399529620"><enum>(I)</enum><text>compliance costs for all regulated entities, including small businesses;</text></subclause> <subclause id="H6DD76EDB709342D2AC167DB954B8B700"><enum>(II)</enum><text>effects on economic activity, efficiency, capital formation, and market competition;</text></subclause> <subclause id="HCBFAA57EC24445A0B592CBF613AF8F3A"><enum>(III)</enum><text>regulatory and administrative costs of implementation;</text></subclause> <subclause id="H6E2731693C1C43C186BEF4C52B0648F1"><enum>(IV)</enum><text>costs imposed on State, local, and tribal entities;</text></subclause> <subclause id="HCCB4F1B9B0C5468284528FD866F83906"><enum>(V)</enum><text>effects on approval rates for consumer financial products or services;</text></subclause> <subclause id="H8A62337825E048E1AF52D70F0FDBC98A"><enum>(VI)</enum><text>effects on access to consumer financial products or services;</text></subclause> <subclause id="HB3ABB477133F476FA02EFD8B6A3B61B7"><enum>(VII)</enum><text>effects on the cost of credit to consumers and businesses;</text></subclause> <subclause id="H5522B54D7033417EBF8D6F66716A7701"><enum>(VIII)</enum><text>effects on the availability, variety, and terms of consumer financial products or services; and</text></subclause> <subclause id="HE1C45342CF5146AF9CA2BB0B0331392C"><enum>(IX)</enum><text display-inline="yes-display-inline">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;</text></subclause></clause> <clause id="H9B6B5F2D95A347F982EC96D095638984"><enum>(vii)</enum><text>an identification of reasonable alternatives to the regulation, including modification of an existing regulation;</text></clause> <clause id="H2E90749FDA2F4C7498D4B8D600B71517"><enum>(viii)</enum><text>an analysis of the costs and benefits, both quantitative and qualitative, of any alternative identified pursuant to clause (vi);</text></clause> <clause id="H4EC33122B4CC40FAB3291850919139A1"><enum>(ix)</enum><text>if quantified net benefits of the proposed action do not outweigh the quantified net benefits of the alternatives, a justification of the regulation;</text></clause> <clause id="H2BDB4E0C02234EE193C0ABF1E37BEB3A"><enum>(x)</enum><text>if quantified benefits identified pursuant to clause (v) do not outweigh the quantified costs of the regulation, a justification of the regulation;</text></clause> <clause id="H1FD68FE5BF5A4372937E296D9E53C33F"><enum>(xi)</enum><text>an assessment of how the burden imposed by the regulation will be distributed; including whether consumers, or small businesses will be disproportionately burdened; and</text></clause> <clause id="H53D658BA55624A80AAF7B272F9B4AB16"><enum>(xii)</enum><text display-inline="yes-display-inline">a probability distribution of the relevant outcomes of the proposed regulation, created through the use of appropriate statistical techniques.</text></clause></subparagraph> <subparagraph id="H1843DC2BE82949B8B6C5A9F94C11E52E"><enum>(B)</enum><header>Release of data and assumptions relied upon in the rulemaking process</header><text display-inline="yes-display-inline">To the greatest extent possible, considering protections with respect to confidential supervisory information, trade secrets, and confidential commercial information, the Bureau shall—</text> <clause id="HC1C40D3B995745119925F95B9BD5BA6A"><enum>(i)</enum><text>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</text></clause> <clause id="HC72CE693FF0848B38C821DFF3CD214A3"><enum>(ii)</enum><text display-inline="yes-display-inline">make such data and assumptions publicly available.</text></clause></subparagraph> <subparagraph id="HC5EBCF13656E4D28BEE0FFA2028AE6AA"><enum>(C)</enum><header>Rulemakings involving no material discretion</header> <clause id="H138FDC4484504A6EBB2415F8B6A39A24"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></clause> <clause id="H82EB3AD6BF1D42A78C274FDC2F101CE7"><enum>(ii)</enum><header>Explanation required</header><text>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.</text></clause></subparagraph> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H011DF62EB6D448F9A6D747A1A5D8A4A9"><enum>104.</enum><header>Accountability to small businesses</header> <subsection id="H04542A0145CC4B04B89B943CE349E1B2"><enum>(a)</enum><header>Rulemaking under Dodd-Frank Wall Street Reform and Consumer Protection Act</header><text>Section 1022(b)(2)(A) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5512">12 U.S.C. 5512(b)(2)(A)</external-xref>) is amended—</text> <paragraph id="H8FE3D1802493444CABE6E4D3CB3FB09A"><enum>(1)</enum><text>in clause (i), by striking <quote>and</quote> at the end;</text></paragraph> <paragraph id="HF606CE1980D24211B5B48D4BCCA3D786"><enum>(2)</enum><text>in clause (ii), by striking the semicolon at the end and inserting <quote>; and</quote>; and</text></paragraph> <paragraph id="H66E24158BE394911B8AC0A0782BA14ED"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H5733C021686E4D4ABFD5D43E95D25F98" display-inline="no-display-inline"> <clause id="H9A7803EA54724DE4BF7070E0386525CF"><enum>(iii)</enum><text display-inline="yes-display-inline">the impact of proposed rules on small entities, in accordance with section 609 of title 5, United States Code;</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HC9024DC344C047B280EC43BFCCE9B98D"><enum>(b)</enum><header>Initial regulatory flexibility analysis</header><text>Section 603(d)(1) of title 5, United States Code, is amended—</text> <paragraph id="H40A8A004BF264670985F9177301503B8"><enum>(1)</enum><text>in subparagraph (B), by striking <quote>and</quote> at the end;</text></paragraph> <paragraph id="H7D2B3F9246BB4F39BC030050A0D7CEEA"><enum>(2)</enum><text>in subparagraph (C), by striking the period and inserting <quote>; and</quote>; and</text></paragraph> <paragraph id="H1E958DBCE75A448BBF63EBFC36E4D58D"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HF83BFE38D812428EA40FEF3427BA1EA2" display-inline="no-display-inline"> <subparagraph id="H10BEBC6373AE48DFB781152F8D7AB157"><enum>(D)</enum><text display-inline="yes-display-inline">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. </text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H72D29B40C5CE4F00AA1E27175AD2A76E"><enum>(c)</enum><header>Final regulatory flexibility analysis</header><text>Section 604(a) of title 5, United States Code, is amended by amending the second paragraph (6) to read as follows:</text> <quoted-block style="USC" id="H991C59F791F541B58BA08BB426B9EBE9" display-inline="no-display-inline"> <paragraph id="HC1E1AC672B824BAC9ED4E6CA9563DE7C"><enum>(7)</enum><text display-inline="yes-display-inline">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.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HBD838B2B99B74C4294751F11E6341D48"><enum>105.</enum><header>Modernizing regulatory reviews</header> <subsection id="H351C3DAF77274B578A6657A530CF0051"><enum>(a)</enum><header>Amendment to the Consumer Financial Protection Act of 2010</header><text>Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5481">12 U.S.C. 5481 et seq.</external-xref>) is amended by inserting after section 1022 the following:</text> <quoted-block id="H6473B491F45041F6AD56F2B71AF5A093" style="OLC"> <section id="H3398A1841BD24EBCAFDC0E6724038392"><enum>1022A.</enum><header>Enhanced review of regulations</header></section> <subsection id="H1ED193F5C301401CA9C362819654D3DD"><enum>(a)</enum><header>Review of major rules or orders</header> <paragraph id="H9AEF31B15E2842D0B821AED70296DC67"><enum>(1)</enum><header>Review authority</header><text>Notwithstanding any other provision of law, a review of major rules or orders shall be conducted by the OMB Director.</text></paragraph> <paragraph id="HC587A667B814400BA189C7FA1C974A0B"><enum>(2)</enum><header>Timing of review</header> <subparagraph id="HFB74B28518B54FF7A80A3737C0956413"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></subparagraph> <subparagraph id="HAB93DC32BF9A473AA3D02C9E34CB3E7A" commented="no"><enum>(B)</enum><header>Retrospective review</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph> <paragraph id="H05C7F4C2030247B893E7FDBA7207E321"><enum>(3)</enum><header>Scope of review</header><text display-inline="yes-display-inline">In conducting a review under this subsection, the OMB Director shall—</text> <subparagraph id="H30647C37CF0B4D49B936A5C9A8453EFB"><enum>(A)</enum><text>evaluate the costs and benefits of the rule, including—</text> <clause id="H4372D65570BE4B85A6B95DD63CA33DD0"><enum>(i)</enum><text>compliance costs for covered persons and service providers;</text></clause> <clause id="HEA20EFF439254784BBD8417824E4D2AE"><enum>(ii)</enum><text>the extent to which the rule achieved the objectives of the rule;</text></clause> <clause id="H2769D28B85364230B69430685B88C586"><enum>(iii)</enum><text>changes in technology, the emergence of new market entrants, and other market developments since the rule was issued;</text></clause> <clause id="HA581B0B429E24334887C0B9E3A4B18C5"><enum>(iv)</enum><text>impacts on competition, innovation, and risk-based pricing;</text></clause> <clause id="H19117BB74E02404B9FDA3955D61EE77D"><enum>(v)</enum><text>operational impacts on covered persons and service providers;</text></clause> <clause id="HCB958C496F654D23A56A85710686D014"><enum>(vi)</enum><text>any unintended consequences affecting consumer choice or access to credit; and</text></clause> <clause id="H7A9A8C6BA0804E7B94698957FDADCA0F"><enum>(vii)</enum><text display-inline="yes-display-inline">whether any dollar, volume, or other thresholds appropriately tailor burdens to entity size; and</text></clause></subparagraph> <subparagraph id="H591A2B2ECA8A45679D48ED8E9EDE563F"><enum>(B)</enum><text>consider the purposes, objectives, and functions of the Bureau under section 1021.</text></subparagraph></paragraph> <paragraph id="H79B8DC9778E8454A8C542FA5F6CE4E78"><enum>(4)</enum><header>Public input and agency response</header> <subparagraph id="H19FCD6115D9947C9975753849915A30C"><enum>(A)</enum><header>Request for information</header><text display-inline="yes-display-inline">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).</text></subparagraph> <subparagraph id="H36118C6C55044B51AC738F42CB16DF9D"><enum>(B)</enum><header>Agency response</header><text display-inline="yes-display-inline">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.</text></subparagraph> <subparagraph id="HC45370D68064420C9801893B7ADA6664"><enum>(C)</enum><header>Interagency consultation</header> <clause id="H1141B6455A844CA2AECA9DBF80B05608"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In conducting a review under this subsection, the OMB Director shall consult with—</text> <subclause id="HAC682E7FE5A446AFA8A40D2A0B30FB61"><enum>(I)</enum><text display-inline="yes-display-inline">the Board of Governors of the Federal Reserve System;</text></subclause> <subclause id="HB7DFF12A4AE34134BF39340D6C506759"><enum>(II)</enum><text display-inline="yes-display-inline">the Federal Deposit Insurance Corporation;</text></subclause> <subclause id="H3C476CF4098F4FF98FA0DAEAFF62F2EB"><enum>(III)</enum><text display-inline="yes-display-inline">the Office of the Comptroller of the Currency;</text></subclause> <subclause id="HE9CA6EA482FB4C1F9CEA49FEA206CFD0"><enum>(IV)</enum><text display-inline="yes-display-inline">the Federal Trade Commission;</text></subclause> <subclause id="H8DFD1D59A47D46E38522DE728EF807F0"><enum>(V)</enum><text display-inline="yes-display-inline">if the Bureau conducted a small business review panel for the major rule or order, the Small Business Administration; and</text></subclause> <subclause id="H0274A400A37245388BF5D02018BBF4B2"><enum>(VI)</enum><text display-inline="yes-display-inline">any other agency that the OMB Director determines relevant to the major rule or order.</text></subclause></clause> <clause id="H0C46A61577A14E199189CABE8D3A4B3C"><enum>(ii)</enum><header>Public access to topics discussed</header><text display-inline="yes-display-inline">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.</text></clause></subparagraph></paragraph> <paragraph id="HFC747ED4F4584ADDB0572615A568352D"><enum>(5)</enum><header>Outcome of review</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="H2EF525878C174C7D9F87B0128BEDF4D8"><enum>(A)</enum><text>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</text></subparagraph> <subparagraph id="H096B11AB8FA74FDAAB91529EF0C2CC3E" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">the Bureau may petition the OMB Director for a single extension of up to 18 months, if the rule requires an analysis under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/6">chapter 6</external-xref> of title 5, United States Code.</text></subparagraph></paragraph></subsection> <subsection id="H7F6CDC997BB84462BE8AEA6FD148ED69" commented="no"> <enum>(b)</enum> <header>Review of non-Major rules</header> <paragraph id="H48FC9C1BB584459BA9B8BB7233ACB2CA" commented="no"> <enum>(1)</enum> <header>In general</header> <text display-inline="yes-display-inline">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.</text> </paragraph> <paragraph id="H98E35A1AF77F4E95872E502245E3F3E7" commented="no"> <enum>(2)</enum> <header>Procedures</header> <text display-inline="yes-display-inline">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.</text> </paragraph> </subsection> <subsection id="H7D22D8A98E624206A85BB891FBA29CFA"><enum>(c)</enum><header>Exclusion of rules in which Bureau exercised no material discretion</header> <paragraph id="HD4123C018EEE49659360C3EA38603948"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="H8DAC8959586848B097B35402136EC14A"><enum>(2)</enum><header>Public input</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="H0974E59B1CED43698C7DF007C48AAF47"><enum>(A)</enum><text>seek public input on the determination described in paragraph (1); and</text></subparagraph> <subparagraph id="H85714B808EBB4623BF629CD98073AA11"><enum>(B)</enum><text>publish on a public website a list of rules or orders exempt from review pursuant to this subsection.</text></subparagraph></paragraph></subsection> <subsection id="HEFF68D357C7B4403BD6EB48BCB985E18"><enum>(d)</enum><header>Severability guidance</header><text display-inline="yes-display-inline">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.</text></subsection> <subsection id="H940CEC1608E749B292856CFB5FB93013"><enum>(e)</enum><header>Postponement of review of significantly amended rules and orders</header> <paragraph id="H07ADF9F784544944BACE1CEF583B2E60"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="HD7EE499F517846EEB4EA59D640B59811"><enum>(A)</enum><text>in subsection (a)(2), with respect to major rules or orders; and</text></subparagraph> <subparagraph id="H691892F74C88403A8C48FBD985BF2AA7"><enum>(B)</enum><text>in (b)(1), with respect to non-major rules.</text></subparagraph></paragraph> <paragraph id="H187452F6B64A4E1F887DEF738AF34F40"><enum>(2)</enum><header>Public comment</header><text display-inline="yes-display-inline">The OMB Director shall seek public comments in making a determination pursuant to paragraph (1).</text></paragraph></subsection> <subsection id="H3A69F2D7D33446AEAF81E340CA966CA0"><enum>(f)</enum><header>Publication of review calendar</header><text display-inline="yes-display-inline">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.</text></subsection> <subsection id="H13468CD450F74F028CD717AB38E9D9A7"><enum>(g)</enum><header>Rule of construction</header><text>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.</text></subsection> <subsection id="H02DDB76D3F044238B5F812CBCF7CBA5D" commented="no"> <enum>(h)</enum> <header>Authority To issue implementing regulations</header> <text display-inline="yes-display-inline">The OMB Director is authorized to promulgate such rules and regulations as are necessary to carry out the provisions of this section.</text> </subsection> <subsection id="H23D3EABC1ECE424A99F23D11CAE63CBB"><enum>(i)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HC575A70CBAA94197A1ACAA087561EDF3" commented="no"><enum>(1)</enum><header>Key performance indicator</header><text>The term <term>key performance indicator</term> 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.</text></paragraph> <paragraph id="H86874DE94D374FFD8BF7440C0128F6E1"><enum>(2)</enum><header>Major rule</header><text>The term <term>major rule</term> has the meaning given that term in section 804 of title 5, United States Code.</text></paragraph> <paragraph id="HE595051B7389430688C1A8DE67F976C8"><enum>(3)</enum><header>OMB Director</header><text display-inline="yes-display-inline">The term <term>OMB Director</term> means the Director of the Office of Management and Budget.</text></paragraph> </subsection> <after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H32215F5B49A6491CA07C16858586D394" commented="no"><enum>(b)</enum><header>Conforming amendment</header><text>Section 1022 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5512">12 U.S.C. 5512</external-xref>) is amended by striking subsection (d).</text></subsection></section> <section id="H214A690AE8214EB3BFCC9C65B1E50EBB"><enum>106.</enum><header>Bureau of Consumer Financial Protection-Inspector General Reform</header> <subsection id="H9190AF7466B741C6A3BD7E33A3A5E548"><enum>(a)</enum><header>Appointment of Inspector General</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/4">Chapter 4</external-xref> of title 5, United States Code, is amended—</text> <paragraph id="HC5A047D1E41A43A0B3EB056E0A727B8F" commented="no" display-inline="no-display-inline"><enum>(1)</enum><text>in section 401—</text> <subparagraph id="H8756F9B9EB6947A58A5058A166E27574" commented="no"><enum>(A)</enum><text>in paragraph (1), by inserting <quote>the Bureau of Consumer Financial Protection,</quote> after <quote>the Export-Import Bank of the United States,</quote>; and</text></subparagraph> <subparagraph id="H6A674FC0586443C3953898A767BE7D2C" commented="no"><enum>(B)</enum><text>in paragraph (3), by inserting <quote>the Director of the Bureau of Consumer Financial Protection;</quote> after <quote>the President of the Export-Import Bank of the United States;</quote>; and</text></subparagraph></paragraph> <paragraph id="HEDC2246946CE4279B5EEF3B509377CB6"><enum>(2)</enum><text>in section 415—</text> <subparagraph id="HBE303B1AE18D4C8C9FAEA9E04CA64430"><enum>(A)</enum><text>in subsection (a)(1), by striking <quote>and the Bureau of Consumer Financial Protection</quote>;</text></subparagraph> <subparagraph id="H424908AFB86740B7AE2C08192AB3904A"><enum>(B)</enum><text>in subsection (c), by striking <quote>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.</quote>; and</text></subparagraph> <subparagraph id="HA2B72F27E83C4A6B9C7B6F8DF8FBCBD1"><enum>(C)</enum><text>in subsection (g)(3), by striking <quote>and the Bureau of Consumer Financial Protection</quote>.</text></subparagraph></paragraph></subsection> <subsection id="H4E94341C4CA34347898ACEC8D870CB48"><enum>(b)</enum><header>Requirements for the Inspector General for the Bureau of Consumer Financial Protection</header> <paragraph id="HEC91560C8FD74A0195D1EDA647E897EF"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Section 1011 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5491">12 U.S.C. 5491</external-xref>) is amended—</text> <subparagraph id="H428F9C9C4D254532A5D4D82BF296A533"><enum>(A)</enum><text>in subsection (b)—</text> <clause id="H42676239C2004BECA43EF98B2EB59025"><enum>(i)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">and Deputy Director</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">, Deputy Director, and Inspector General</header-in-text></quote>; and</text></clause> <clause id="HF3BC9C6DEE004A788299E1D0481AA6BD"><enum>(ii)</enum><text>by inserting after paragraph (5) the following:</text> <quoted-block display-inline="no-display-inline" id="H31BD68F0BDB74169904E814A275762DC" style="OLC"> <paragraph id="HD3CAAF90E88343FA8E6D7CC38BCD671D"><enum>(6)</enum><header>Inspector General</header><text display-inline="yes-display-inline">There is established the position of the Inspector General.</text></paragraph> <after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="HF25291966DD84189B039D8561A10B5EB"><enum>(B)</enum><text>in subsection (d), by striking <quote>or Deputy Director</quote> each place it appears and inserting <quote>, Deputy Director, or Inspector General</quote>.</text></subparagraph></paragraph> <paragraph id="HAC1E3A11C4C04957A38ED51B1FC69152"><enum>(2)</enum><header>Hearings</header><text display-inline="yes-display-inline">Section 1016 of such Act is amended by inserting after subsection (c) the following:</text> <quoted-block display-inline="no-display-inline" id="HAB69794A08454A4A809733AAF1163DEC" style="OLC"> <subsection id="H75F72450DA2248AE92E90060B061970B"><enum>(d)</enum><header>Additional Requirement for Inspector General</header><text display-inline="yes-display-inline">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.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HC0FF129B3FA6454C98C670361950CA21"><enum>(3)</enum><header>Participation in the Council of Inspectors General on Financial Oversight</header><text display-inline="yes-display-inline">Section 989E(a)(1) of such Act is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H428CCB3AD67A43B6872872F0CD446585" style="OLC"> <subparagraph id="H63CC0ED93FCB4A38BF49DB929E4CCA36"><enum>(J)</enum><text display-inline="yes-display-inline">The Bureau of Consumer Financial Protection.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H65AC8ED1EFC448E084BAAD9A8AC8E755"><enum>(4)</enum><header>Deadline for appointment</header><text display-inline="yes-display-inline">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.</text></paragraph></subsection> <subsection id="H18FDF09F7D6B4E62A869E3F5BDEBA110"><enum>(c)</enum><header>Effective date</header> <paragraph id="HAC4B297DA8CC4326A79D2D54ED88E848"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="H5154166FDA5D4AE6A7F7B5722C8C87E8"><enum>(2)</enum><header>Appointment</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="H7BE948A502E04DDB97FEFD99A0D732B6"><enum>(3)</enum><header>Transition</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="H8AF46053FCC7447EB84B0224D17647C8"><enum>(4)</enum><header>Savings provision for pending matters</header> <subparagraph id="HC9C2042845DF4100A7C63E1A952F0C99"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></subparagraph> <subparagraph id="H244355CE309A4B669CDD2FEA108993F1"><enum>(B)</enum><header>Continuing effect</header><text display-inline="yes-display-inline">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.</text></subparagraph> <subparagraph id="HDD5E8B4AC49C40F6B21C81B27E5BA065"><enum>(C)</enum><header>Transfer of records and authority</header><text display-inline="yes-display-inline">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).</text></subparagraph></paragraph></subsection></section> <enum>II</enum><header>Restoring Legal Clarity and Procedural Fairness</header> <section id="H304AD6A118C64E4C93699F9FBE886C7A"><enum>201.</enum><header>Rectifying undefined descriptions of abusive acts and practices</header> <subsection id="HD87E87870D9E41DE9B3E6FEB00E89874"><enum>(a)</enum><header>Rulemaking relating to unfair, deceptive or abusive acts or practices</header> <paragraph id="H2B42DC37DFA64EAFB1DC8F758470BC0C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>) is amended by striking subsection (b) and inserting the following:</text> <quoted-block style="OLC" id="HBE75C194275C4EB1B5247053C1C91E1B" display-inline="no-display-inline"> <subsection id="H4AA1B5459249407B933303B40A6FC714"><enum>(b)</enum><header>Rulemaking</header> <paragraph id="H0FE1DE24798E4B709663A50CF2132C06"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Bureau may prescribe rules applicable to a covered person or service provider identifying as unlawful unfair, deceptive, or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. Rules under this section may include requirements for the purpose of preventing such acts or practices.</text></paragraph> <paragraph id="HD906C9EA79C74C95882C414FCBBDF57B"><enum>(2)</enum><header>Cost benefit analysis required</header><text>Any final rule issued by the Bureau relating to abusive, unfair, or deceptive acts or practices shall include a cost-benefit analysis.</text></paragraph> <paragraph id="H79E59A9809B641E3ACEE7A776C494911"><enum>(3)</enum><header>Definition of abusive act or practice</header><text display-inline="yes-display-inline">The Bureau shall, not later than 180 days after the date of the enactment of this subsection, issue a rule that defines the term <term>abusive act or practice</term> for the purposes of this section.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H8887342A716940A28EA5C3DEAC78C17F"><enum>(2)</enum><header>Opportunity for comment</header><text display-inline="yes-display-inline">The Bureau of Consumer Financial Protection shall, not later than 180 days after the date of the enactment of this subsection, allow the public to submit comments with respect to any confusion about how the Bureau of Consumer Financial Protection uses its authority with respect to unfair, deceptive, or abusive acts or practices.</text></paragraph> <paragraph id="H8315E4A4342D45CFA7C6DFE2336B25EE"><enum>(3)</enum><header>Prohibition on taking certain actions before rulemaking</header><text display-inline="yes-display-inline">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.</text></paragraph></subsection> <subsection id="H6A8177B0946043BC943D65FFC9F3BBC0"> <enum>(b)</enum> <header>No authority To declare an act unlawful based on discrimination</header> <text display-inline="yes-display-inline">Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="HC35564CC0B1C427EA85E16A2F5EC1935" display-inline="no-display-inline"> <subsection id="H293F7287FD7C41A79B7B9EC25E6B065A"> <enum>(g)</enum> <header>No authority To declare an act unlawful based on discrimination</header> <text display-inline="yes-display-inline">The Bureau may not interpret the authority of the Bureau relating to unfair, deceptive, or abusive acts and practices to include discriminatory practices.</text> </subsection> <after-quoted-block>.</after-quoted-block> </quoted-block> </subsection> <subsection id="H60CA5AD38D7C46DDB0EE1B709342A4F1"><enum>(c)</enum><header>Clarifying the abusive standard for the Bureau of Consumer Financial Protection</header><text>Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>) is amended by striking subsection (d) and inserting the following:</text> <quoted-block style="OLC" id="HD0517A55B26742479495B10A7AEBA752" display-inline="no-display-inline"> <subsection id="H491DBF95A1174ED090E9DB09858939FD"><enum>(d)</enum><header>Abusive</header> <paragraph id="HEE3BFE42BBF645E782610A27AB715C49"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="HB0177253D25A4027871C7C9D3B043BC2"><enum>(A)</enum><text>intentionally and materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service; or</text></subparagraph> <subparagraph id="HCBB30D4010F54B168A79977C1C52F5D7"><enum>(B)</enum><text>takes unreasonable advantage of—</text> <clause id="HC6573A3D616F442D994A8E33FFA4ED9B"><enum>(i)</enum><text display-inline="yes-display-inline">a lack of understanding by the consumer with respect to the possible impact, material risks, costs, or conditions of the product or service, or the likelihood of the risks, costs, or conditions of the product or service negatively affecting the consumer; and</text></clause> <clause id="H7278B44151EC4AD5B490018AD41A1AA2"><enum>(ii)</enum><text>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.</text></clause></subparagraph></paragraph> <paragraph id="HF501ED8961E74A2698E1C15803C16A1B"><enum>(2)</enum><header>Abusive actions</header> <subparagraph id="H8A426F5C801F4EF2A9329B76DE161937"><enum>(A)</enum><header>In general</header><text>Conduct of a covered person or service provider shall be considered abusive if—</text> <clause id="HD3FC3A8D050F4754A3D055B6F04A794F"><enum>(i)</enum><text display-inline="yes-display-inline">the act or practice causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers; and</text></clause> <clause id="H39B21F7E1DBC476882DDD9F0E95998D6"><enum>(ii)</enum><text display-inline="yes-display-inline">such substantial injury is not outweighed by countervailing benefits to consumers or to competition.</text></clause></subparagraph> <subparagraph id="H34BA2DCFF563476B966A0A0229A77262"><enum>(B)</enum><header>Presumption</header><text display-inline="yes-display-inline">For purposes of subparagraph (A)(i):</text> <clause id="H24AEE376E6894E088C9EB09E15EE4463"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></clause> <clause id="HEC50F30EE4964FFAAF0CB4080CF34399"><enum>(ii)</enum><header>Rebuttal</header><text display-inline="yes-display-inline">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.</text> </clause></subparagraph></paragraph></subsection> <subsection id="H7DC29726AEA34F8BAA28A42F24C8BFB1"> <enum>(e)</enum> <header>Good-Faith effort To comply</header> <paragraph id="HDE983BCBB15345119978198160F3F947"> <enum>(1)</enum> <header>In general</header> <text display-inline="yes-display-inline">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.</text> </paragraph> <paragraph id="HEFB632D9C9544C61880EFBF08743259F"> <enum>(2)</enum> <header>Authority to seek legal or equitable remedies</header> <subparagraph id="HC80CD51831F64AECACAFEB3CB96DB750"> <enum>(A)</enum> <header>In general</header> <text>The limitation described in paragraph (1) shall not restrict the authority of the Bureau to seek legal or equitable remedies, such as damages and restitution, to redress an identifiable consumer injury caused by the abusive acts or practices of such covered person.</text> </subparagraph> <subparagraph id="H82D325D1CC9041E1A707BA2F4896F8FF"> <enum>(B)</enum> <header>Rule of construction</header> <text display-inline="yes-display-inline">For purposes of subparagraph (A), a civil money penalty described in section 1055(c) is not a legal or equitable remedy.</text> </subparagraph> </paragraph> </subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H7CBB243E5CF54CA49B7A94CA14857145"> <enum>(d)</enum> <header>Notice and opportunity To cure</header> <text>Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>), as amended by subsection (b), is further amended by adding at the end the following:</text> <quoted-block style="OLC" id="H000D340AB669485A9E158C2920D8D0EA" display-inline="no-display-inline"> <subsection id="H331C4AC7A4A949338E8C68A4B7575DF4" display-inline="no-display-inline"> <enum>(h)</enum> <header>Notice and opportunity To cure</header> <paragraph id="HF98F45DD26354FC4BF12B90D5483A365"> <enum>(1)</enum> <header>In general</header> <text display-inline="yes-display-inline">If a covered person self-identifies a potential unfair, deceptive, or abusive act or practice carried out by such covered person, the Bureau shall, not later than 90 days after such self-identification, provide a written notice in the form of a potential action and request for response letter or a notice and opportunity to respond and advise letter of the potential unfair, deceptive, or abusive act or practice to such covered person and inform the covered person that such person has 180 days after the date the covered person receives such notice to cure such potential unfair, deceptive, or abusive act before the Bureau may commence an administrative proceeding or civil action.</text> </paragraph> <paragraph id="HBC6C7CE5465B4510A58823CB976926C5"> <enum>(2)</enum> <header>Tolling of statute of limitations</header> <text>Any applicable statute of limitations that applies to conduct under which the Bureau has given notice and an opportunity to cure shall not toll until—</text> <subparagraph id="H6122A0E9E9A745FBAB4320741F2D298A"> <enum>(A)</enum> <text>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;</text> </subparagraph> <subparagraph id="HDF3B550398F142048757684034E86EEA"> <enum>(B)</enum> <text>the covered person notifies the Bureau that such covered person will not cure the act or practice; or</text> </subparagraph> <subparagraph id="HB330FBFF82CC4E38B1167BC8830D0DCC"> <enum>(C)</enum> <text>the 180-day period to cure ends.</text> </subparagraph> </paragraph> </subsection> <after-quoted-block>.</after-quoted-block> </quoted-block> </subsection> <subsection id="H3CC1910697524021B22910CCA491BCDD"> <enum>(e)</enum> <header>Abusive, unfair, or deceptive acts or practices enforcement actions</header> <text display-inline="yes-display-inline">Section 1031 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5531">12 U.S.C. 5531</external-xref>), as amended by subsection (e), is further amended by adding at the end the following:</text> <quoted-block style="OLC" id="H28D72DE68F1640369C4F6E5669B2BEBB" display-inline="no-display-inline"> <subsection id="H9A3485E90BBD42DDA5153FB7FE7B18AC"> <enum>(i)</enum> <header>Venue for unfair, deceptive, or abusive acts or practices enforcement actions</header> <text>Enforcement actions brought by the Bureau under this section shall be brought in—</text> <paragraph id="HA20CFC6B3F0F4E21A9E4B76D35FBC7A2"> <enum>(1)</enum> <text>the United States district court located where the covered person has its headquarters location; or</text> </paragraph> <paragraph id="H12D80807BBD74DF7B2E2A89F4381187E"> <enum>(2)</enum> <text>the United States District Court for the District of Columbia.</text> </paragraph> </subsection> <subsection id="H8C7FFDB9EC624816A007E3973E7B0F70"> <enum>(j)</enum> <header>Enforcement Actions</header> <paragraph id="H270B78DB64DA421CB46CA1CCD8C9E387"> <enum>(1)</enum> <header>In general</header> <text display-inline="yes-display-inline">If the Bureau brings an enforcement action under this section, the Bureau shall state with particularity the circumstances that the Bureau alleges constitute a violation of this section.</text> </paragraph> <paragraph id="H10CFEBD7467848F48B157A7FF83E3327"> <enum>(2)</enum> <header>Alternative claims</header> <text display-inline="yes-display-inline">If the Bureau brings an enforcement action under this section—</text> <subparagraph id="H0178FAABC77B4138BE0DD15785CC398C"> <enum>(A)</enum> <text>claiming that an activity is unfair or deceptive, the Bureau may not claim in the alternative that the activity is abusive; and</text> </subparagraph> <subparagraph id="HC62D8354AF5E462DAAD421E3F467C327"> <enum>(B)</enum> <text>claiming that an activity is abusive, the Bureau may not claim in the alternative that the activity is unfair or deceptive.</text> </subparagraph> </paragraph> </subsection> <after-quoted-block>.</after-quoted-block> </quoted-block> </subsection> <subsection id="HCD2CD0A2CB3043F2A67EF8AA8C4D76C7"> <enum>(f)</enum> <header>Look-Back provisions</header> <paragraph id="HF10661DC708341B58C43E8C4EE5D8E94"> <enum>(1)</enum> <header>In general</header> <text>Subtitle B of title X of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5511">12 U.S.C. 5511 et seq.</external-xref>) is amended by adding at the end the following new section:</text> <quoted-block style="OLC" id="HF6C5B8EBE57D4CB2BC08FCE08C0AC15B" display-inline="no-display-inline"> <section id="H45B23181C37A4B589A49CD86FF44FC83"> <enum>1029B.</enum> <header>Examination period limitations</header> <subsection id="HBCCB45CE0C89444B8C59A5492E50986B"> <enum>(a)</enum> <header>In general</header> <text display-inline="yes-display-inline">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).</text> </subsection> <subsection id="H5E16F09E018F4016BDDFF7F68F1F96A8"> <enum>(b)</enum> <header>Rule of construction</header> <text display-inline="yes-display-inline">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.</text> </subsection> </section> <after-quoted-block>.</after-quoted-block> </quoted-block> </paragraph> <paragraph id="HCF5668AE267C4D4CB7280CCD7E7930ED"> <enum>(2)</enum> <header>Clerical amendment</header> <text>The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 1029A the following:</text> <quoted-block style="OLC" id="H5A16133E4E6A46A8BE39553D3FBADBD4" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 1029B. Examination period limitations.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block> </quoted-block> </paragraph> </subsection></section> <section id="HC000055CF3EF48C997008DB882F7D8DA"><enum>202.</enum><header>Limitation on use of unfair, deceptive, or abusive acts or practices authority to circumvent statutes of limitations</header> <subsection id="H3F6DFCCD89684416A2600F10E0EB0FDB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1054 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5564">12 U.S.C. 5564</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="HEFF98CB620864974B19742B539345271" display-inline="no-display-inline"> <subsection id="HA131EB586774422D8363486B704608A8"><enum>(h)</enum><header>Limitation on actions based on unfair, deceptive, or abusive acts or practices</header> <paragraph id="H44EC5E28503E4CD49D9E836A2375953A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="HA73756B17A964899A32718C635404C53"><enum>(2)</enum><header>Conduct subject to another Federal consumer financial law</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="H9E7254DA202241E5A829EFDF0F178002"><enum>(3)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this subsection shall be construed to—</text> <subparagraph id="H71C2768F86F34ECFA3FA58D84F45C292"><enum>(A)</enum><text display-inline="yes-display-inline">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</text></subparagraph> <subparagraph id="H8C6D10274D1B4E18909D6FB9C7D15354"><enum>(B)</enum><text>alter, extend, or toll any statute of limitations applicable to a violation of any Federal consumer financial law.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H2DC07C821B984868AB1C2C0C13615A84"><enum>(b)</enum><header>Application</header><text display-inline="yes-display-inline">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—</text> <paragraph id="HE5B486C909EA41999F943F94804B93CA"><enum>(1)</enum><text>the Bureau of Consumer Financial Protection; or</text></paragraph> <paragraph id="HF838588D4CE14B6F8737682437393A79"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text></paragraph></subsection></section> <section id="HC5E215FAE7544AD684B9BCCAD2447029"><enum>203.</enum><header>Definition of substantial injury</header><text display-inline="no-display-inline">Section 1002 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5481">12 U.S.C. 5481</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="HBE3B5785A4D249C7B1E6CE7AB3B47BA1" display-inline="no-display-inline"> <paragraph id="H0D7A8832295B4F9F913EF5CFFD6DAE42"><enum>(30)</enum><header>Substantial injury</header><text display-inline="yes-display-inline">The term <term>substantial injury</term>—</text> <subparagraph id="HD7631F436B0F4D66913AE949ED0B45BC"><enum>(A)</enum><text display-inline="yes-display-inline">means a concrete and quantifiable harm to a consumer or a class of consumers, including—</text> <clause id="H43B8182B47CE4688A47F3C24CC152B3B"><enum>(i)</enum><text>monetary harm;</text></clause> <clause id="H99AAA334DC7848B18071E56F302F99EE"><enum>(ii)</enum><text display-inline="yes-display-inline">a material risk of monetary harm that the Bureau determines is likely to occur; or</text></clause> <clause id="H5EAC37A20D6A486AB756F99A10CE0017"><enum>(iii)</enum><text>a significant adverse effect on a consumer’s ability to access or use a consumer financial product or service;</text></clause></subparagraph> <subparagraph id="HC9905F7FCF284787B1EB12B62093BC14"><enum>(B)</enum><text>does not include—</text> <clause id="H256DB71CC7D04C41A784892CB06C237E"><enum>(i)</enum><text>trivial, hypothetical, or merely speculative harms;</text></clause> <clause id="H639665CF05644CBDAD8D1178D1673623"><enum>(ii)</enum><text>emotional impact, reputational harm, or subjective distress absent a showing of material financial or functional impairment; or</text></clause> <clause id="H3C3E0056F23343BBA4509DD86D1E12B1"><enum>(iii)</enum><text>harms that are outweighed by countervailing benefits to consumers or competition;</text></clause></subparagraph> <subparagraph id="H6C414F541B774854AEF8D8F103E34B79"><enum>(C)</enum><text>shall be determined based on objective evidence, which may include—</text> <clause id="H1415E2B67B3F4EDEBF8CE863123EE5B1"><enum>(i)</enum><text>the aggregate impact on similarly situated consumers;</text></clause> <clause id="H81FBB59673FA499593176169F8332A53"><enum>(ii)</enum><text>the likelihood and magnitude of harm; and</text></clause> <clause id="H106F405665B340058B510A0CDE615EB5"><enum>(iii)</enum><text>whether the injury results from a practice that is systemic or isolated;</text></clause></subparagraph> <subparagraph id="HF5A8D59F348448D7BD1B2FE1DE9BC975"><enum>(D)</enum><text display-inline="yes-display-inline">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</text></subparagraph> <subparagraph id="H4AA5D4C5CA7849D58EEEF391B95A8FF5"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H8CCE346CB01D4B47B23DFBDD9947993B"><enum>204.</enum><header>Restoring court authority over litigation</header> <subsection id="H498DF64901DB451DA29FA20E3EB59A6A"><enum>(a)</enum><header>Court authority over attorneys engaged in litigation activities</header> <paragraph id="HBCA2CD1CCD5B47FAB2668A5700563F46"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/28/99">Chapter 99</external-xref> of title 28, United States Code, is amended by inserting after <external-xref legal-doc="usc" parsable-cite="usc/28/1631">section 1631</external-xref> the following:</text> <quoted-block id="HA679515791B14C9C82CE447AD59F9216" style="USC"> <section id="H16493730008A4D29865EACB66FC6D8BB"><enum>1632.</enum><header>Preservation of State and Federal courts’ primary and inherent authority to regulate and oversee attorneys engaged in litigation activities</header> <subsection id="H7C595E88371C41228A8B0DF43F4A5934"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H41FFB0F66C0E4A2BB449A895D33763A6"><enum>(1)</enum><header>Federal agency</header><text>The term <term>Federal agency</term> means an agency as defined in section 551(1) of title 5.</text></paragraph> <paragraph id="H28454493A47540529B6D3DC0183DB05E"><enum>(2)</enum><header>Litigation activities</header><text>The term <term>litigation activities</term> 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—</text> <subparagraph id="H1EC5B81173634252A9693036CB3FB50F"><enum>(A)</enum><text>serving, filing, or conveying formal legal pleadings, discovery requests, or other documents pursuant to the applicable statute or rules of civil procedure;</text></subparagraph> <subparagraph id="H15DAB25F66C445CB9C58549B53084381"><enum>(B)</enum><text>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</text></subparagraph> <subparagraph id="H1279C596A21C4814B608C0CC826274D8"><enum>(C)</enum><text>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.</text></subparagraph></paragraph> <paragraph id="HB64EAD4D5B3947C38061A8FEFFA12068"><enum>(3)</enum><header>State</header><text>The term <term>State</term> 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.</text></paragraph></subsection> <subsection id="H391F1E1BBA47499DA0FE16814B91A9B3"><enum>(b)</enum><header>Limitation on Federal agency authority</header><text>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.</text></subsection> <subsection id="H22A1DBDD0E1C4D4C9F66897C1B6F1285"><enum>(c)</enum><header>No private right of action</header><text display-inline="yes-display-inline">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.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HB38C2D7667814C74BE688E9A46829D12"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/28/99">chapter 99</external-xref> of title 28, United States Code, is amended by inserting after the item related to section 1631 the following:</text> <quoted-block style="USC" id="H0C5B9FE4677248D493340577BCFA65EC" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <toc-entry level="section">1632. Preservation of State and Federal courts’ primary and inherent authority to regulate and oversee attorneys engaged in litigation activities.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H11F8A7ACFAB345F7AC45E2277F30D9A0"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H33AD6F228C614A23BC039B6D01978760"><enum>(1)</enum><header>Fair Debt Collection Practices Act</header><text>Section 803(6) of the Fair Debt Collection Practices Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1692a">15 U.S.C. 1692a(6)</external-xref>) is amended—</text> <subparagraph id="H6ED3C7C6C5F847D483BB6970F1EF7DD7"><enum>(A)</enum><text>by redesignating subparagraph (F) as subparagraph (G); and</text></subparagraph> <subparagraph id="HA34B80063D274819BE7399E54068ACCD"><enum>(B)</enum><text>by inserting after subparagraph (E) the following:</text> <quoted-block id="HB480EE1C23364F36944C04753745DE6B" style="OLC"> <subparagraph id="H05016C79A6934947A13369C743F3775F"><enum>(F)</enum><text display-inline="yes-display-inline">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</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H1AB569BB36D340B18470727184350E74"><enum>(2)</enum><header>Consumer Financial Protection Act of 2010</header><text display-inline="yes-display-inline">Section 1027(e) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5517">12 U.S.C. 5517(e)</external-xref>) is amended—</text> <subparagraph id="HC940DAAAEA13475196A7EDD9C810F879"><enum>(A)</enum><text>by redesignating paragraph (3) as paragraph (4); and</text></subparagraph> <subparagraph id="H55CC524A7B9B4B0FBDAE29327BEA8045"><enum>(B)</enum><text>by inserting after paragraph (2) the following:</text> <quoted-block style="OLC" id="HF63EB5DFF5804411B13AE0362DBA9719" display-inline="no-display-inline"> <paragraph id="H489D03887B7B4396B52A1AB3D3D744C9"><enum>(3)</enum><header>Rule of construction limitation with respect to debt collection</header><text display-inline="yes-display-inline">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 <term>debt collector</term> under section 803 of the Fair Debt Collection Practices Act by reason of section 803(6)(F) of such Act.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection></section> <section id="H4044C6B4257A46E9B26DD39C2E773167" section-type="subsequent-section" display-inline="no-display-inline"><enum>205.</enum><header>Clarification to the authority of the Bureau with respect to persons regulated by a State insurance regulator</header><text display-inline="no-display-inline">Section 1027(f) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5517">12 U.S.C. 5517(f)</external-xref>) is amended—</text> <paragraph id="H210391A129E84186BEA905FC6986E930"><enum>(1)</enum><text>in paragraph (2)—</text> <subparagraph id="HD294BC5A23A24C189B11DE5132F79B23"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">Description of activities.—</header-in-text>Paragraph (1)</quote> and inserting:</text> <quoted-block display-inline="yes-display-inline" id="H8BD5DFE4186F4E8D94B6BD201D3EF1C6" style="OLC"><text><header-in-text level="paragraph" style="OLC">Exceptions.—</header-in-text></text> <subparagraph id="H547B7C9260C64753AC6CC0E6BA382817" indent="up2"><enum>(A)</enum><header>Authority</header><text display-inline="yes-display-inline">Paragraph (1)</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H16F4AF7D57DA49E18F83D5C61CFB1A1D"><enum>(B)</enum><text>by inserting after subparagraph (A) (as added by this Act) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H7EDC1E5AFC1D46FC8BFB52C2D2BE7CD3" style="OLC"> <subparagraph id="H2BEF697C64684873A91AC821CB3FF901"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">With respect to a person regulated by a State insurance regulator—</text> <clause id="H7F72F7A3A6434732AC033D672954CACF"><enum>(i)</enum><text display-inline="yes-display-inline">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</text></clause> <clause id="HF9BD18476FB94EE2AB0E606FF82D3F61"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text></clause></subparagraph> <after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H61C76673BE1545FCBD9524AAECDDD2D6"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H92FE1C1899AF4C3BA442492E2B61EB42" style="OLC"> <paragraph id="H627718480EFC45F3B3E96726AB894F77"><enum>(4)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">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.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <enum>III</enum><header>Promoting Innovation in Consumer Financial Markets</header> <section id="H1C235B80D74D4B409B9A6C5875A099E0"><enum>301.</enum><header>Safe harbor for small-dollar credit products</header> <subsection id="H9ADE909E3BA84A169552C40FC01A60E6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1601">15 U.S.C. 1601 et seq.</external-xref>) is amended by inserting after section 114 the following:</text> <quoted-block style="USC" id="H8856C4E008944B638EC01B5F2EF47548" display-inline="no-display-inline"> <section id="HDA1F6337BF904828AEC6F6A45E445D19"><enum>115.</enum><header>Safe harbor for small-dollar credit products</header> <subsection id="HDD223915A4D34F83AFF17A59B872080C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">If a covered entity complies with the requirements set forth in subsections (b), (c), and (e) with respect to the offering of a small-dollar product to a consumer, such covered entity shall not be liable in connection with such offering of a small-dollar product, for—</text> <paragraph id="H3ECF3B60A03748FD92E0D9F25CFCFC04"><enum>(1)</enum><text>any civil money penalties from any enforcement action brought by the Bureau, the appropriate Federal banking agency, or the National Credit Union Administration for a violation of this title; or</text></paragraph> <paragraph id="H1D4E94EC923843DB85A411E286238922"><enum>(2)</enum><text>any damages or other monetary relief through a private right of action brought under this title.</text></paragraph></subsection> <subsection id="HD595E15D9C844D98A04E65E61460EE74"><enum>(b)</enum><header>Product structure requirements</header> <paragraph id="H8983BE2F64BC4A31886CA91A957C01C9"><enum>(1)</enum><header>In the case of an installment loan</header><text display-inline="yes-display-inline">If a small-dollar credit product is structured by a covered entity as an installment loan—</text> <subparagraph id="HD7EB31F8A1B74CAEA00A731D8629158B" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the repayment term shall be more than 45 days;</text></subparagraph> <subparagraph id="HE1BD5DF3FBE443608A3870205BF59749" commented="no"><enum>(B)</enum><text>payments shall be fully amortized across more than one payment;</text></subparagraph> <subparagraph id="HB71CFE123B834CE48853D996037C0B6A"><enum>(C)</enum><text display-inline="yes-display-inline">rollovers into new small-dollar credit products shall be prohibited, unless initiated by a consumer; and</text></subparagraph> <subparagraph id="HF56F39073AFA4F45BE9659101323E35C"><enum>(D)</enum><text display-inline="yes-display-inline">the covered entity may not issue any small-dollar credit product to a consumer if such consumer has a small-dollar credit product open with such covered entity at the time such consumer applies for a small-dollar credit product.</text></subparagraph></paragraph> <paragraph id="H5F8AF593DBE14ED4A378BFFF443F8DEA"><enum>(2)</enum><header>In the case of a line of credit</header><text display-inline="yes-display-inline">If a small-dollar credit product is structured by a covered entity as a line of credit—</text> <subparagraph id="H3C01772673A14F49AF476D8F60ED54DE" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the repayment term for each draw shall be more than 45 days unless a single payment is used and the draw is not more than 10 percent of the lesser of $3,500 (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</text></subparagraph> <subparagraph id="H76D628ADB0B14475B15E591BCF72138A"><enum>(B)</enum><text>payments for each draw shall be fully amortized across more than one payment, except in the case of any single-payment loans.</text></subparagraph></paragraph> <paragraph id="H7E0DB8F46A4E4A2D9F72672F804C80A3"><enum>(3)</enum><header>Rules of construction</header> <subparagraph id="H3954A12A13434AA78C30F47414C4C384"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Nothing in this subsection may be construed to prohibit the Bureau, a Federal banking agency, or the National Credit Union Administration from issuing a cease-and-desist order or restitution order under this title against a covered entity.</text></subparagraph> <subparagraph id="HBC4AA779254146A290BBC2F1CCF29008"><enum>(B)</enum><header>Enforcement of other statutes</header><text display-inline="yes-display-inline">Nothing in this subsection may be construed to prohibit the Bureau, a Federal banking agency, or the National Credit Union Administration from enforcing any provision of law not contained within this title against a covered entity.</text></subparagraph></paragraph></subsection> <subsection id="H8B9E903A79AB418F8EC0B768D92563AC"><enum>(c)</enum><header>Underwriting requirements</header><text>When considering whether to offer a small-dollar credit product to a specific consumer, a covered entity—</text> <paragraph id="H7C6972A11CC04D38A0E4C57E9BA6D560"><enum>(1)</enum><text display-inline="yes-display-inline">shall use sound underwriting processes; and</text></paragraph> <paragraph id="HBFF48025CBBF45F78F5FE83E35D07C0A"><enum>(2)</enum><text>may analyze internal or external data sources, including consumer deposit account activity, to assess the creditworthiness of a consumer.</text></paragraph></subsection> <subsection id="H28F72A152960423AA94A66B58254FC19"><enum>(d)</enum><header>Rule of construction</header><text>Nothing in this title may be construed to prohibit a covered entity from offering a small-dollar product that does not comply with the safe harbor requirements set forth under this section.</text></subsection> <subsection id="H2655ED0130434699A669A26EB203CD92"><enum>(e)</enum><header>Additional limitations and requirements</header> <paragraph id="H7CF20E2C50CD403DA14ED31A61705288"><enum>(1)</enum><header>Balloon payments</header><text display-inline="yes-display-inline">No payment required in association with a small-dollar credit product offered by a covered entity may be greater than double the amount of any other payment required in association with such product.</text></paragraph> <paragraph id="H501C54512A9F4C68987DDBE80DBC56EA"><enum>(2)</enum><header>Disclosures</header><text display-inline="yes-display-inline">Each covered entity that offers a small-dollar credit product shall comply with all disclosure requirements set forth by this title.</text></paragraph> <paragraph id="H7C48B4ECE11940E9923D3C9CB4DE4800"><enum>(3)</enum><header>Penalties</header><text display-inline="yes-display-inline">A covered entity may not impose any prepayment penalty in connection with a small-dollar credit product.</text></paragraph> <paragraph id="HEDB8CE85A8714651AACFB11CEE0B3571"><enum>(4)</enum><header>Transfer of amounts</header><text>Amounts made available to a consumer through a small-dollar credit product offered by a covered entity shall be disbursed to the account of such consumer by such covered entity not later than 5 days after the approval of the consumer for the small-dollar credit product.</text></paragraph></subsection> <subsection id="H67FC5A4D88394180B6B5CAA389CD3E9A"><enum>(f)</enum><header>Inflation adjustment</header> <paragraph id="HDEED6C2765244F10B6E64D821EEB3F69"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="HF76BBC58C6ED49DA93226983DE416121"><enum>(2)</enum><header>Base period</header><text>The increase required under paragraph (1) shall be determined using calendar year 2026 as the base period.</text></paragraph> <paragraph id="HE481CEE2E648462CA71D46DA74EA1B6B"><enum>(3)</enum><header>Rounding</header><text>Any amount increased under paragraph (1) shall be rounded to the nearest $100.</text></paragraph> <paragraph id="H2E74DCD2482A48C2BE008EF78F2BCF77"><enum>(4)</enum><header>Publication</header><text>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.</text></paragraph></subsection> <subsection id="HFE0C087CEBAF4B03AF6F7C0650DE9379"><enum>(g)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text> <paragraph id="H4DA9EDD1D78247EDA2C4DED6B07C91C8"><enum>(1)</enum><header>Covered entity</header><text display-inline="yes-display-inline">The term <term>covered entity</term> means—</text> <subparagraph id="H93040E036AFB43D8BAEDA266C65B400F"><enum>(A)</enum><text>an insured depository institution;</text></subparagraph> <subparagraph id="HCF1FDF18FC6D4E238A3180610FAC5908"><enum>(B)</enum><text>an insured credit union;</text></subparagraph> <subparagraph id="HC2FBDB49BAA341D1A91AA83D78FD8300"><enum>(C)</enum><text>a third party with whom an insured depository institution has contracted for products or services related to origination, servicing, or administrative management of a small-dollar credit product; or</text></subparagraph> <subparagraph id="H02F81E38DB934AB0927459B067E5AD71"><enum>(D)</enum><text>a third party with whom an insured credit union has contracted for products or services related to origination, servicing, or administrative management of a small-dollar credit product.</text></subparagraph></paragraph> <paragraph id="HCD313BD436A54C849E25C5CE100C40CE"><enum>(2)</enum><header>Federal banking agency definitions</header><text display-inline="yes-display-inline">The terms <term>appropriate Federal banking agency</term> and <term>Federal banking agency</term> have the meaning given those terms, respectively, in section 3 of the Federal Deposit Insurance Act.</text></paragraph> <paragraph id="H85BF8E03096E442E90087005678DC939"><enum>(3)</enum><header>Insured credit union</header><text>The term <term>insured credit union</term> has the meaning given the term in section 101 of the Federal Credit Union Act.</text></paragraph> <paragraph id="H78C57E755B6E4855B16934E33CC8D1F3"><enum>(4)</enum><header>Insured depository institution</header><text display-inline="yes-display-inline">The term <term>insured depository institution</term> has the meaning given the term in section 3 of the Federal Deposit Insurance Act.</text></paragraph> <paragraph id="H3BCEE92F4F394649A5DA301DA90E21E2"><enum>(5)</enum><header>Small-dollar credit product</header><text display-inline="yes-display-inline">The term <term>small-dollar product</term> means a loan or line of credit with a value of $3,500 (as such amount is adjusted under subsection (f)) or less.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6D1790F477504CF1AC987CE3312EE32E" display-inline="no-display-inline"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of contents for chapter 1 of the Truth in Lending Act is amended by inserting after the item relating to section 114 the following:</text> <quoted-block id="HC8BBB5B8BBD949B59CCC23637B21F4E0" style="USC"> <toc> <toc-entry idref="H9AE19CD370004B5AA6DFFBA0971F5A90" level="section">115. Safe harbor for small-dollar credit products.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H9C1C8E8B4EF74DA3BD1336C283846A81" display-inline="no-display-inline" section-type="subsequent-section"><enum>302.</enum><header>Guidance clarity statement required</header> <subsection id="H7D6B1E1367AE454C9ED9145D195D4B6D" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></subsection> <subsection id="H6A5CC01CA4C44D4185AAC7EBBC73A07F"><enum>(b)</enum><header>Guidance clarity statement</header><text>A guidance clarity statement required under subsection (a) shall be displayed prominently on the first page of the document and shall include the following: <quote>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.</quote>.</text></subsection> <subsection id="HD9743251535249B3A7CC597126B61967"><enum>(c)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H7671C4379FA44805BA9E053C8BC15547"><enum>(1)</enum><header>Financial agency</header><text>The term <term>financial agency</term> means the following:</text> <subparagraph id="HC3B368A230A645119A3F03CC2A5F878C"><enum>(A)</enum><text>The Bureau of Consumer Financial Protection.</text></subparagraph> <subparagraph id="H9166EF04CF724A5EA0B21C3ECE4110A0"><enum>(B)</enum><text>The Department of Housing and Urban Development.</text></subparagraph> <subparagraph id="H5F8AE5290A924F12BEB3F1D0417678DF"><enum>(C)</enum><text>The Department of the Treasury.</text></subparagraph> <subparagraph id="HD662225003ED46CCB253162CC1522926"><enum>(D)</enum><text>The Federal Deposit Insurance Corporation.</text></subparagraph> <subparagraph id="H26EA5D5210EA4E68A78CF71DB5B493FC"><enum>(E)</enum><text>The Federal Housing Finance Agency.</text></subparagraph> <subparagraph id="H2B8EF844CB684FAB82548FB4546743BC"><enum>(F)</enum><text>The Board of Governors of the Federal Reserve System.</text></subparagraph> <subparagraph id="HB3E7CAE3E404419699F629D84BCDA737"><enum>(G)</enum><text>The National Credit Union Administration.</text></subparagraph> <subparagraph id="HD0EE6681ED144EE784C43FF1E20211B7"><enum>(H)</enum><text>The Office of the Comptroller of the Currency.</text></subparagraph> <subparagraph id="H5D2DC6A8570641A087A7EE22B710E2A2"><enum>(I)</enum><text>The Securities and Exchange Commission.</text></subparagraph></paragraph> <paragraph id="H7DFAD4D0E77046E5990BB2988A6C9486"><enum>(2)</enum><header>Guidance</header><text>The term <term>guidance</term> 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—</text> <subparagraph id="H87D9AFEF341B4E81A20CF5B98F98DD3B"><enum>(A)</enum><text>a rule promulgated pursuant to notice and comment under section 553 of title 5, United States Code;</text></subparagraph> <subparagraph id="HB2C39491B4704FD4BD94510BC76F284F"><enum>(B)</enum><text>a rule exempt from rulemaking requirements under section 553(a) of title 5, United States Code;</text></subparagraph> <subparagraph id="H67EABEB118494F9887245C0F6D8BD6AE"><enum>(C)</enum><text>a rule of financial agency organization, procedure, or practice;</text></subparagraph> <subparagraph id="HEB0B015428B7428498BBC17E789CAD78"><enum>(D)</enum><text>a decision of a financial agency adjudication under section 554 of title 5, United States Code, or any similar statutory provision;</text></subparagraph> <subparagraph id="H07154B4EB5574834BA51F6A5A8F8E984"><enum>(E)</enum><text>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</text></subparagraph> <subparagraph id="HBE5BD2F9540F48979814B6BF6711C9A4"><enum>(F)</enum><text>internal executive branch legal advice or legal opinions addressed to executive branch officials.</text></subparagraph></paragraph></subsection></section> <section id="H677EEB4FA151458BA2D13070A74E4BD1" display-inline="no-display-inline" section-type="subsequent-section"><enum>303.</enum><header>GAO study on buy now pay later services</header> <subsection id="H25202D7233A4488D89763F26E2EDA8DE"><enum>(a)</enum><header>In general</header><text>The Comptroller General of the United States shall—</text> <paragraph id="HE9F474682BC14819BFFBE07EFABE0653"><enum>(1)</enum><text>conduct a study on buy now pay later services, including—</text> <subparagraph id="H1934A472C94542B7BD54F32908DD0880"><enum>(A)</enum><text>the nature, size, and role of the entities offering buy now pay later services;</text></subparagraph> <subparagraph id="HC32D469265B0452DB1AE3CBBFA643ABF"><enum>(B)</enum><text>the market share held by the primary nonbank firms and financial institutions offering buy now pay later services;</text></subparagraph> <subparagraph id="HAB1A7B99FE184F5B8FC5A22880AC9AE4"><enum>(C)</enum><text>the disclosures provided to consumers regarding buy now pay later services, including the accessibility and readability of such disclosures;</text></subparagraph> <subparagraph id="H7DB896720FBB44968FAB58DF17580664"><enum>(D)</enum><text>the benefits of buy now pay later services, including—</text> <clause id="H794049B13D62495D9C96D0966387F340"><enum>(i)</enum><text>the flexibility of payment options;</text></clause> <clause id="HB118B5FBC8AC4865BDBC408BB6691C74"><enum>(ii)</enum><text>the potential for increased purchasing power; and</text></clause> <clause id="HC307A3345696477DA8269D6CF90AB0FB"><enum>(iii)</enum><text>competitive product offerings;</text></clause></subparagraph> <subparagraph id="H674D041445404D929B3B455127405BF9"><enum>(E)</enum><text>the risks of buy now pay later services, including—</text> <clause id="H4F3C2714247F4757A2F6E3BA2543D23E"><enum>(i)</enum><text>potential for delinquencies and prolonged debt;</text></clause> <clause id="H274A30499D614A4E85173EF7AB5395A4"><enum>(ii)</enum><text>the ability of consumer reporting agencies to accurately score buy now pay later transactions; and</text></clause> <clause id="H9436997C06AB40B8A6BA1EF738671F0C"><enum>(iii)</enum><text>any unintended consequences for reporting data on such services to consumer reporting agencies;</text></clause></subparagraph> <subparagraph id="HB748447141464119893FF019D62DCF24"><enum>(F)</enum><text>the prevalence of partnerships between entities offering buy now pay later services and traditional financial institutions and e-commerce platforms;</text></subparagraph> <subparagraph id="HBEA63A3A78EF4E8189D71AF5510424AB"> <enum>(G)</enum> <text>the potential for fraud in buy now pay later services;</text> </subparagraph> <subparagraph id="H3B1BC5846E1A40DDBA772CBC5819BDA8"><enum>(H)</enum><text>comparing the specific features, benefits, and risks of using such services to the use of other products, including—</text> <clause id="H93D0CA8DB3EA46C3B2712B49939C2F32"><enum>(i)</enum><text>overall debt accumulation;</text></clause> <clause id="HDE542801295B470DB590270365837114"><enum>(ii)</enum><text>the average interest rate charged to consumers;</text></clause> <clause id="HCC058DD8E98C4101970D7F97ED9CDA10"><enum>(iii)</enum><text>the range of interest rates charged to consumers;</text></clause> <clause id="HB38D8BAE2F6C4EBCAEE0E48E268BC449"><enum>(iv)</enum><text>the amount and type of fees charged to consumers annually;</text></clause> <clause id="H1DA688BA930947DFA54C82B2F33AE7C4"><enum>(v)</enum><text>the availability and clarity of legal disclosures associated with such use;</text></clause> <clause id="H0491F58C94544FB9AADF345F49E74C18"><enum>(vi)</enum><text>consumer understanding of payment cycles and due dates; and</text></clause> <clause id="H5805F857497D41FFB680B0A967BCD531"><enum>(vii)</enum><text display-inline="yes-display-inline">delinquency and default rates; and</text></clause></subparagraph> <subparagraph id="HE97CD8FF8D0C4668BAC141D3CE832C6A"><enum>(I)</enum><text display-inline="yes-display-inline">data regarding the prevalence and rate of on-time repayments by consumers using buy now pay later services; and</text></subparagraph></paragraph> <paragraph id="HCB116494322E44FAA85E7D978D2DFED3"><enum>(2)</enum><text>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).</text></paragraph></subsection> <subsection id="H34BDBF6DD80746538CEAF26A559E0D58"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HA5C971D167524A6E8A65A206EB5632A8"><enum>(1)</enum><header>Buy now pay later service</header> <subparagraph id="HBD5C5BD681524951B40724B4F2C1708E"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>buy now pay later service</term> 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—</text> <clause id="HA2F0F36E2B2349DA9960D8D18B2ADA56"><enum>(i)</enum><text>allows the consumer to pay for such goods or services over a period of time;</text></clause> <clause id="H918752096C0D464DBD4D16968167C025"><enum>(ii)</enum><text>provides for repayment in a specified number of substantially equal periodic installments; and</text></clause> <clause id="HFC9F8E9CFA6644C1A2E14EEA6BF6BD66"><enum>(iii)</enum><text>does not impose interest or a finance charge on the consumer in connection with such transaction.</text></clause></subparagraph> <subparagraph id="HB055E9AC8FC645CD87CBDF6CF2CE5EA0"><enum>(B)</enum><header>Exclusion</header><text>The term <term>buy now pay later service</term> does not include—</text> <clause id="HDE054D3ADB6240B28AE86E0DF3C703B3"><enum>(i)</enum><text display-inline="yes-display-inline">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</text></clause> <clause id="HD471246C22D94657862F9C127D871545"><enum>(ii)</enum><text>financing secured by the goods purchased or leased in the transaction.</text></clause></subparagraph></paragraph> <paragraph id="HC46E9C38A5BD4FED83CA67F710047AA4"><enum>(2)</enum><header>Relevant congressional committees</header><text>The term <term>relevant congressional committees</term> means—</text> <subparagraph id="HCA40FFD337CC414499950C43C5183226"><enum>(A)</enum><text>the Committee on Financial Services of the House of Representatives; and</text></subparagraph> <subparagraph id="HC0EAA3B32A334489B9E202D769179656"><enum>(B)</enum><text>the Committee on Banking, Housing, and Urban Affairs of the Senate.</text></subparagraph></paragraph></subsection></section> <section id="H4138B3840FFF43B2B8FAF79FC753C975"><enum>304.</enum><header>Earned wage access services</header> <subsection id="H1C61785C175D45B0B07D8A023A2213A4"><enum>(a)</enum><header>Provision of earned wage access services</header> <paragraph id="HCF9D531119D248D68110F4F6E8133813"><enum>(1)</enum><header>No-cost option required</header> <subparagraph id="HAC880A16B5B546329C0B9E3A37A2DBDD"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph> <subparagraph id="H8D858CFDF74A4D03BCB800184B6C39AB"><enum>(B)</enum><header>Transfer time period</header><text display-inline="yes-display-inline">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.</text></subparagraph> <subparagraph id="H91167D9BA82F45B9B3EAF57DC2886F7D"><enum>(C)</enum><header>No effect on earned wages</header><text>A consumer’s election of the no-cost option described in subparagraph (A) may not impact—</text> <clause id="H7E3B476479684FC28987E2E43011BFAC"><enum>(i)</enum><text>the amount of earned wages disbursed to such consumer;</text></clause> <clause id="H2142DED2888D41FD908F1CFB99E3238E"><enum>(ii)</enum><text>the frequency with which such earned wages are disbursed to such consumer; or</text></clause> <clause id="HA7C77CFBDA864B8BA33F5B9F7C281E51"><enum>(iii)</enum><text>the consumer’s eligibility to use the provider’s earned wage access services.</text></clause></subparagraph></paragraph> <paragraph id="HD595F1724E124EF08996E83DA25F9C06"><enum>(2)</enum><header>Required disclosures</header> <subparagraph id="H1510C863B40548B18F1A58DC32D0C966"><enum>(A)</enum><header>Disclosures preceding agreement</header><text display-inline="yes-display-inline">Each earned wage access provider shall disclose the following before entering into an agreement with a consumer:</text> <clause id="H02976DDEB0594426A13B4FC9A29D7B4F"><enum>(i)</enum><text>Any limits on access to the earned wages a consumer may request from such provider, including—</text> <subclause id="H231A48B9AE5E431AAEDFC094B487A7E0"><enum>(I)</enum><text display-inline="yes-display-inline">any limits on the amount of earned wages a consumer may request from the provider each day, pay period, or other time period;</text></subclause> <subclause id="H06F2DE4D3A994F8CAA65A4682E41530B"><enum>(II)</enum><text display-inline="yes-display-inline">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</text></subclause> <subclause id="HFC4C137F14B441BC95EF9CF2CCD79FF0"><enum>(III)</enum><text>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.</text></subclause></clause> <clause id="H9F1B680EB630422C8EDA544607805B9D"><enum>(ii)</enum><text display-inline="yes-display-inline">Any fees that such provider may apply, and the amount of such fees.</text></clause> <clause id="H31CCFA7E320C41F4B04D1C8BB0DCC380"><enum>(iii)</enum><text display-inline="yes-display-inline">A clear and conspicuous description of how the consumer may obtain earned wages without paying a fee or tip.</text></clause> <clause id="H6E2C15A024E844D6961118D0146516D8"><enum>(iv)</enum><text>An overview of such provider’s use of tips that describes—</text> <subclause id="HBE11673F49DA4A8BA5205132EDF2A0C2"><enum>(I)</enum><text display-inline="yes-display-inline">whether such provider will accept tips from the consumer and in what amounts; and</text></subclause> <subclause id="H3AD90F97E73244E794DA0F4E8B58F9D2"><enum>(II)</enum><text>whether such provider will suggest the consumer provide tips and in what amounts.</text></subclause></clause></subparagraph> <subparagraph id="HCA4E7DB53E5C4C7BB7A4B31A0DE65E54"><enum>(B)</enum><header>Disclosures preceding disbursement of earned wages</header><text display-inline="yes-display-inline">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:</text> <clause id="H32AD9D373F1D4C208F5538BE04ABB3AA"><enum>(i)</enum><text display-inline="yes-display-inline">The account number such provider has assigned to the consumer, if applicable.</text></clause> <clause id="H7ABE1F56CF8C40268055D640EF7ADBA6"><enum>(ii)</enum><text display-inline="yes-display-inline">The amount of earned wages that will be provided to the consumer by such provider.</text></clause> <clause id="HF4BCAFE3E4F84BD6953018D92804D677"><enum>(iii)</enum><text display-inline="yes-display-inline">The total amount of any fees applied by such provider for such transaction.</text></clause> <clause id="H4D2006BB221B48E69304DE9A0FEA00C1"><enum>(iv)</enum><text display-inline="yes-display-inline">A list of any tips the consumer has chosen to provide for such transaction.</text></clause> <clause id="H896460E2C6A54A3697AE21B8444BD770" commented="no"><enum>(v)</enum><text display-inline="yes-display-inline">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.</text></clause></subparagraph> <subparagraph id="H7D04A13F0B874BCB923CABB319196097"><enum>(C)</enum><header>Additional disclosures relating to fees and tips</header><text display-inline="yes-display-inline">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:</text> <clause id="HDFEA489F42BE4CB78B324272E74E6225"><enum>(i)</enum><text>The total amount of fees and tips that the consumer has already paid in the then-current pay period.</text></clause> <clause id="H528C02A1061D4D8781E1F5CC722619FD"><enum>(ii)</enum><text>The total amount of fees and tips that the consumer has already paid in the calendar year-to-date.</text></clause></subparagraph> <subparagraph id="HA71796F649DB46F1A8DF860ABF11A2DD"><enum>(D)</enum><header>Additional disclosures relating to tips</header><text display-inline="yes-display-inline">If an earned wage access provider solicits, charges, or receives a tip from a consumer, such provider—</text> <clause id="H1A3985B661BC4547B5E07A7154EA3B44"><enum>(i)</enum><text>shall clearly and conspicuously disclose to the consumer, before the provider commences the transaction to which the tip is related, that such tip—</text> <subclause id="HEAF14EEA02AA42B5B43298D3653BD4FE"><enum>(I)</enum><text>is voluntary;</text></subclause> <subclause id="HC3B3FB953E71446E835210276A19DAF9"><enum>(II)</enum><text>is not a requirement for receiving earned wage access services; and</text></subclause> <subclause id="HE9B197CBCA834925B5334DD59DD48EB4"><enum>(III)</enum><text display-inline="yes-display-inline">will not impact—</text> <item id="H7C6872A8D5A74DFAB7516839B2C6B583"><enum>(aa)</enum><text>the amount of such earned wages;</text></item> <item id="H92E21A2FA48F45F6B70DFB2C0E5575A4"><enum>(bb)</enum><text display-inline="yes-display-inline">the frequency with which such earned wages are disbursed to such consumer; or</text></item> <item id="HBC1F7DC66EC64708878631393EDB4B43"><enum>(cc)</enum><text display-inline="yes-display-inline">the consumer’s eligibility to use the provider’s earned wage access services;</text></item></subclause></clause> <clause id="HF7EAC8BD0CFE43E99EDCF49A92FE09E7"><enum>(ii)</enum><text display-inline="yes-display-inline">may not state that such tip will benefit—</text> <subclause id="HE768235D29BE41FF8C75C747B98F67CF"><enum>(I)</enum><text>any specific individual; or</text></subclause> <subclause id="HC3F645B9BECB4852B513D42517C20772"><enum>(II)</enum><text>any group of individuals other than the provider itself; and</text></subclause></clause> <clause id="H730B6F8B208B45EB862B6D646F56DCA0"><enum>(iii)</enum><text>may describe, in general terms, the benefits or services offered by such provider to consumers.</text></clause></subparagraph> <subparagraph id="H1483BA071A4C48CA9A45CE4B29D0AEBB"><enum>(E)</enum><header>Changes to terms</header><text display-inline="yes-display-inline">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—</text> <clause id="H07199DB5FFFF4DFBBE1DA8D8EA661BC6"><enum>(i)</enum><text>30 days before such material changes take effect; or</text></clause> <clause id="HE040607D380B4098B394787C6418A24D"><enum>(ii)</enum><text>a shorter amount of time before such material changes take effect, if the consumer has consented to such shorter amount of time.</text></clause></subparagraph></paragraph> <paragraph id="HB531F0CEE31C4B7080671F8E8F4B0889"><enum>(3)</enum><header>Consumer attestation before receiving earned wages</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="H43A4D8A72B894C1F98C9F9C474161B59"><enum>(4)</enum><header>Cancellation of services</header><text display-inline="yes-display-inline">If an earned wage access provider makes earned wage access services available to a consumer on a recurring basis, such earned wage access provider—</text> <subparagraph id="H9940BD3573494A149133F17C33D0ADC8"><enum>(A)</enum><text>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</text></subparagraph> <subparagraph id="HC400ECD813E545A4A690021352170826"><enum>(B)</enum><text display-inline="yes-display-inline">may not impose any financial penalty or cancellation charge on such consumer as a result of any discontinuation of services.</text></subparagraph></paragraph> <paragraph id="H299BF926A9D74755BF593E182A424540"><enum>(5)</enum><header>Dispute process required</header><text display-inline="yes-display-inline">Each earned wage access provider shall develop and implement policies and procedures to respond to questions and complaints from consumers relating to—</text> <subparagraph id="HE75F45EC04204758B7ABFB93AA760A32" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">unauthorized disbursement of earned wages;</text></subparagraph> <subparagraph id="HD21550BA7C2648D79FB05EF5FE44284F"><enum>(B)</enum><text>disbursement of earned wages in an incorrect amount;</text></subparagraph> <subparagraph id="H3E1E48F2A241477890051E09A5142D16"><enum>(C)</enum><text>disbursed earned wages that were not received;</text></subparagraph> <subparagraph id="HBB52D4363A6F4C769B1BED527BD82E63" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">payment of disbursed earned wages that was not received or was made in an incorrect amount; and</text></subparagraph> <subparagraph id="HA54E33DFBE244348A9449C88A4539F32"><enum>(E)</enum><text>fees or tips that were not authorized or were made in an incorrect amount.</text></subparagraph></paragraph> <paragraph id="HB5331119FCFC45A79F44B2C96E913E0E"><enum>(6)</enum><header>Compelling payment for disbursed earned wages</header> <subparagraph id="H506395D5B0004D1EB63DE3F0BF9631C0"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text> <clause id="HA9FBD39E0C864491A3D11D000E17CAE5" commented="no" display-inline="no-display-inline"><enum>(i)</enum><text>filing a civil suit against the consumer;</text></clause> <clause id="H2C0D1D56671B46B3B141FD9A9A1C9F9F" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text display-inline="yes-display-inline">initiating arbitration proceedings against the consumer;</text></clause> <clause id="HDF4FD6A042454AC887E44A7044598079" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">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</text></clause> <clause id="H56D4C733A9ED4F0C9F99A2EA6CF8DB4B" commented="no"><enum>(iv)</enum><text display-inline="yes-display-inline">selling expected payment to a third-party debt buyer for purposes of debt collection from the consumer.</text></clause></subparagraph> <subparagraph id="HF0F3992D130C4AE380C0A045ED8D329E"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph> <paragraph id="H9120E3F59C52494383B0E7432BC28071"><enum>(7)</enum><header>Reimbursement required</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/15/6809">15 U.S.C. 6809</external-xref>)), the earned wage access provider shall reimburse such consumer for such fee.</text></paragraph> <paragraph id="HBA595E6D51174595B18CA5FD9F0B7636"><enum>(8)</enum><header>Additional limitations</header><text display-inline="yes-display-inline">An earned wage access provider may not—</text> <subparagraph id="H9BA5EB7FE23848CA8354138B4B59870F" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">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;</text></subparagraph> <subparagraph id="H12ED7159C0E84D15B88148D58EAC22F6"><enum>(B)</enum><text display-inline="yes-display-inline">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;</text></subparagraph> <subparagraph id="H949BAC7D27CC43F9BE085F2E6A0E047D" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">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</text></subparagraph> <subparagraph id="HCB96C19F0F7B4EFC9D9AAD28D665A554"><enum>(D)</enum><text display-inline="yes-display-inline">furnish information to a consumer reporting agency (as defined in section 603 of the Fair Credit Reporting Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1681a">15 U.S.C. 1681a</external-xref>)) about a consumer’s earned wage access services activities.</text></subparagraph></paragraph> <paragraph id="H0EDC79FBA00B4981B6AA46E969265899"><enum>(9)</enum><header>Disclosure to employer</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="HA77D9132998F4D4EADD0D8EA7DC161B3"><enum>(10)</enum><header>Non-discrimination</header> <subparagraph id="HA84D91ABAD6F43E897214C108F4E4717"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></subparagraph> <subparagraph id="HCD29E5DF48174CD296EFAC93B93D212A"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this paragraph—</text> <clause id="HF7B520D66EA24F6297646601789E4C6B"><enum>(i)</enum><text display-inline="yes-display-inline">the terms <term>race</term>, <term>color</term>, <term>religion</term>, <term>national origin</term>, <term>sex</term>, <term>marital status</term>, and <term>age</term> have the same meanings, respectively, as used in section 701 of the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691">15 U.S.C. 1691</external-xref>) and rules issued thereunder; and</text></clause> <clause id="H03B624EA7C7846469A1E186ECD1970A7"><enum>(ii)</enum><text display-inline="yes-display-inline">the terms <term>pregnancy</term>, <term>childbirth</term>, and <term>related medical conditions</term> have the same meanings, respectively, as used in section 701(k) of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e(k)</external-xref>).</text></clause></subparagraph></paragraph> <paragraph id="H9917DF99689648E5B2EA4D0B437BEB34"><enum>(11)</enum><header>Consumer data protections</header><text display-inline="yes-display-inline">Each earned wage access provider shall be deemed a <quote>financial institution</quote> for purposes of subtitle A of title V of the Gramm-Leach-Bliley Act (<external-xref legal-doc="usc" parsable-cite="usc/15/6801">15 U.S.C. 6801 et seq.</external-xref>).</text></paragraph> <paragraph id="HDD7B6EB6D76F492FA570FF1632A98A20" commented="no"><enum>(12)</enum><header>Default tip amount</header> <subparagraph id="HEC5A962009B84FEFA9CB31E571411595"><enum>(A)</enum><header>In general</header><text>An earned wage access provider may not set any default tip amount greater than $0 in connection with earned wage access services.</text></subparagraph> <subparagraph id="HC2AC7ED561C44737B769D4327EEC81A0"><enum>(B)</enum><header>Selection of $0 tip</header><text display-inline="yes-display-inline">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.</text></subparagraph> <subparagraph id="H8C3392060FE545658ED2DFDB8938D18A"><enum>(C)</enum><header>Rule of construction</header><text>Nothing in this paragraph may be construed to prohibit the provider from requiring the consumer to confirm the final transaction on a completion screen.</text></subparagraph></paragraph> <paragraph id="HC12D87848AE5461D8D8B2D5DB062EA3B"><enum>(13)</enum><header>Earned Wage Access Provider Attestation</header><text>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.</text></paragraph></subsection> <subsection id="H8E85FDD84C3C433AA208C624A51C4C86"><enum>(b)</enum><header>Relation to State laws</header> <paragraph id="HFED63F738D334655B30201E38277531B"><enum>(1)</enum><header>Preservation of State law</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="H11460AC82C5240BD9A80D95227D74861"><enum>(2)</enum><header>Preemption</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="H732CD7B332E54B6DAC1185627FD9C82F"><enum>(A)</enum><text>treat such services as credit, a loan, debt, or a substantially similar product or service;</text></subparagraph> <subparagraph id="H6A890C353B484F4EB0EE13D3F3373734"><enum>(B)</enum><text>treat a provider of such services as a creditor, lender, or provider of a substantially similar product or service; or</text></subparagraph> <subparagraph id="HF009A3D151E74E1495AAA3B027CE9FB5"><enum>(C)</enum><text display-inline="yes-display-inline">prevent or significantly interfere with the offering or provision of earned wage access services that comply with this Act.</text></subparagraph></paragraph> <paragraph id="H14D25542CB7044D7A14700408ACFBE46"><enum>(3)</enum><header>Savings clause</header><text display-inline="yes-display-inline">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.</text></paragraph></subsection> <subsection id="H59C064747DDA4FE992A49343D5E1F3A2"><enum>(c)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">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.</text></subsection> <subsection id="H9619B071AD6F4685AF8B90C496B4752F"><enum>(d)</enum><header>Rule of construction</header><text>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.</text></subsection> <subsection id="H237BE469EEDD4A03BF42CA86D9D42ECC"><enum>(e)</enum><header>Conforming amendments</header> <paragraph id="H3BB6C865FD9B43BB9ED6536B625EA80B"><enum>(1)</enum><header>Consumer Financial Protection Act of 2010</header><text display-inline="yes-display-inline">Section 1002 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5481">12 U.S.C. 5481</external-xref>) is amended—</text> <subparagraph id="HCBDA208856D64A8090937AB09EC38AD7"><enum>(A)</enum><text>in paragraph (12)—</text> <clause id="H4BED94C45951489E8C41166461AE0431"><enum>(i)</enum><text>in subparagraph (Q), by striking <quote>and</quote> at the end;</text></clause> <clause id="H285BB24F637F4EC2BBC847AE572CB1F4"><enum>(ii)</enum><text>in subparagraph (R), by striking the period at the end and inserting <quote>; and</quote>; and</text></clause> <clause id="HC291CD9D4A8B44C3873853393253CA59"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H16EE42892AB745928DA3A3AB92F01FE2" display-inline="no-display-inline"> <subparagraph id="H36809722D73A478498D20C1051BCBE86"><enum>(S)</enum><text display-inline="yes-display-inline">the Earned Wage Access Consumer Protection Act.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="H02B491877B984E84AE23E36CBED76463"><enum>(B)</enum><text>in paragraph (15)(A)—</text> <clause id="H2534AE0A85324725AA6C667948D9F92C"><enum>(i)</enum><text display-inline="yes-display-inline">by redesignating clauses (x) and (xi) as clauses (xi) and (xii), respectively; and</text></clause> <clause id="HC833E6263ECF4350BA31A756D7B1BA1D"><enum>(ii)</enum><text>by inserting after clause (ix) the following:</text> <quoted-block style="OLC" id="H1B78D3B5FF844AF2BFF45EA4CA606330" display-inline="no-display-inline"> <clause id="H57378A95855243B4938F657D98AEECE2"><enum>(x)</enum><text display-inline="yes-display-inline">providing earned wage access services, as defined in section 2 of the Earned Wage Access Consumer Protection Act;</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="H2280EB3A379F402E874689015DB121DA"><enum>(2)</enum><header>Truth in Lending Act</header><text>Section 103 of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1602">15 U.S.C. 1602</external-xref>) is amended—</text> <subparagraph id="H328B7ECB6C174997AF6B4D0663D82DC7"><enum>(A)</enum><text>in subsection (f), by striking <quote>defer its payment</quote> and inserting <quote>defer its payment, but does not include earned wage access services as defined in the Earned Wage Access Consumer Protection Act</quote>; and</text></subparagraph> <subparagraph id="HE7EE2919EAF2452FACBCE3641F119C53"><enum>(B)</enum><text>in subsection (g), by adding at the end the following: <quote>The term creditor does not include earned wage access providers as such term is defined in the Earned Wage Access Consumer Protection Act.</quote>.</text></subparagraph></paragraph></subsection> <subsection id="H5AC1E3741FC6447DB4265288459C71F1"><enum>(f)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H348C5AF3C9764B41BBC94FED580792C1"><enum>(1)</enum><header>Bureau</header><text display-inline="yes-display-inline">The term <term>Bureau</term> means the Bureau of Consumer Financial Protection.</text></paragraph> <paragraph id="H6923FB95F4604DF6B63E9C39D3B4D056"><enum>(2)</enum><header>Consumer</header><text>The term <term>consumer</term> means a natural person.</text></paragraph> <paragraph id="H2D8E2363488540EA978C26B62626BF7F"><enum>(3)</enum><header>Earned wages</header> <subparagraph id="H0B39A9B8249A4663A485EF5D9CD89AFB"><enum>(A)</enum><header>In general</header><text>The term <term>earned wages</term> 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.</text></subparagraph> <subparagraph id="H6FB378F5D1E242C89AB6223891CA55F1"><enum>(B)</enum><header>Services provided</header><text display-inline="yes-display-inline">Services provided by the consumer include any services provided—</text> <clause id="H9F73DFBB619F41739930886669A3722D"><enum>(i)</enum><text>on an hourly, project-based, piecework, salaried, or other basis; or</text></clause> <clause id="HB506699056E84BA6B887D51696076840"><enum>(ii)</enum><text display-inline="yes-display-inline">when the consumer is acting as a contractor of the employer.</text></clause></subparagraph></paragraph> <paragraph id="HB731121AFF994C18B0CF26CF4CA34BF7"><enum>(4)</enum><header>Earned Wage Access Provider</header> <subparagraph id="HA398D4272B3440E4A95AEB5F4B4E6F4A"><enum>(A)</enum><header>In general</header><text>The term <term>earned wage access provider</term> means a person who provides earned wage access services to consumers.</text></subparagraph> <subparagraph id="H3CE756720ADA45798D795FA413BC4E06"><enum>(B)</enum><header>Exclusions</header><text display-inline="yes-display-inline">The term <term>earned wage access provider</term> does not include—</text> <clause id="H923B969A5DEE4B429F4D36EA76240410"><enum>(i)</enum><text>a person who is not obligated to provide access to earned wages as part of an earned wage access service;</text></clause> <clause id="HA7EEC6829A7149FCB76237049D2F5E67"><enum>(ii)</enum><text display-inline="yes-display-inline">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;</text></clause> <clause id="H948152F7274B41B79BEE9DD5B9716DFD"><enum>(iii)</enum><text display-inline="yes-display-inline">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</text></clause> <clause id="H6DC2DC9B3ADA40FD888AAAA578D67077"><enum>(iv)</enum><text display-inline="yes-display-inline">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.</text></clause></subparagraph></paragraph> <paragraph id="H9B47B76218534EE1927326BD29608DF3"><enum>(5)</enum><header>Earned wage access services</header><text display-inline="yes-display-inline">The term <term>earned wage access services</term> means the delivery of earned wages to a consumer based on—</text> <subparagraph id="H3319BFF6F2BF43A48D1A814F54E9EF9D"><enum>(A)</enum><text display-inline="yes-display-inline">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</text></subparagraph> <subparagraph id="HEA2006D9DFFD41E7AC5C6247281AB057"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph> <paragraph id="H76672182216F4D9698B810029A28A42C"><enum>(6)</enum><header>Employer</header><text display-inline="yes-display-inline">The term <term>employer</term>—</text> <subparagraph id="HF6CE2BAA78B94DCC8D9E171E2A1BABA6"><enum>(A)</enum><text>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</text></subparagraph> <subparagraph id="H3B8AFFAF10474409BAA8A88DA42D8700"><enum>(B)</enum><text>does not include—</text> <clause id="HBD5453E6DA7649F187B35F37A95C1B40"><enum>(i)</enum><text>a customer of a person; or</text></clause> <clause id="H6C57649371EE45039BCE57FA856D4ACA"><enum>(ii)</enum><text>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.</text></clause></subparagraph></paragraph> <paragraph id="H8C532C6515A44D839294D487AD1FA35A"><enum>(7)</enum><header>Fee</header><text display-inline="yes-display-inline">The term <term>fee</term> means—</text> <subparagraph id="HC916893A51294746B1AB909642136D14"><enum>(A)</enum><text display-inline="yes-display-inline">a fee for delivery, or expedited delivery, of proceeds to a consumer; or</text></subparagraph> <subparagraph id="HFD2A95402C13447DAB9F02DC1B4C380B"><enum>(B)</enum><text>a subscription, participation, or membership fee for earned wage access services or a group of services that includes earned wage access services.</text></subparagraph></paragraph> <paragraph id="HBC724ADA9A944309ACBA04E920CE0EBD" commented="no"><enum>(8)</enum><header>Payroll service vendor</header><text display-inline="yes-display-inline">The term <term>payroll service vendor</term> 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.</text></paragraph> <paragraph id="H10BF323D8FCD4913898617C43770E272" commented="no"><enum>(9)</enum><header>Tip</header><text display-inline="yes-display-inline">The term <term>tip</term> means any gratuity, donation, or other voluntary payment that is—</text> <subparagraph id="H5336928AD2714F539852ADEB407D9CC2"><enum>(A)</enum><text>made by a consumer to an earned wage access provider;</text></subparagraph> <subparagraph id="HE007E4EDA8BE4995990DE795DA58174C"><enum>(B)</enum><text display-inline="yes-display-inline">provided gratuitously and without any consequence for nonpayment;</text></subparagraph> <subparagraph id="HE7FC382CBDA94920BC37915C3E432203"> <enum>(C)</enum> <text>not subject to negotiation; and</text> </subparagraph> <subparagraph id="H008A33B9FBE14B5A954D028F1CDD6834"><enum>(D)</enum><text>in an amount determined by the consumer.</text></subparagraph></paragraph> <paragraph id="H55351BD1A5F1456B8704DFB32C5A66D2"><enum>(10)</enum><header>State</header><text display-inline="yes-display-inline">The term <term>State</term> means each of the several States, the District of Columbia, and any territory of the United States.</text></paragraph></subsection></section> <enum>IV</enum><header>Promoting Effective, Predictable Supervision</header> <section id="H46AAD71802214E94A01F82A826C3FFD9" section-type="subsequent-section"><enum>401.</enum><header>Asset thresholds for supervision of banks, savings associations, and credit unions by the Bureau of Consumer Financial Protection</header> <subsection id="H89A659D64E8A4A2AAFD431DE2D5F76A9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1025(a) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5515">12 U.S.C. 5515(a)</external-xref>) is amended—</text> <paragraph id="H728288A9AE5A4DCFBA8C75D16718EF60"><enum>(1)</enum><text>by striking <quote>This</quote> and inserting the following:</text> <quoted-block style="OLC" id="HC532E18D89614FA98C16DDB84C3C2AA8" display-inline="no-display-inline"> <paragraph id="H816BBDF461E749B5BF7222F19FB1FDB1"><enum>(1)</enum><header>Thresholds</header><text display-inline="yes-display-inline">This</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HB498EFD325BB4F5DADEBFE1C019DC041"><enum>(2)</enum><text>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively (and adjusting the margins of such subparagraphs accordingly);</text></paragraph> <paragraph id="HCBBE1BEAA26646918808038797757A96"><enum>(3)</enum><text>by striking <quote>$10,000,000,000</quote> each place it appears and inserting <quote>$30,000,000,000</quote>; and</text></paragraph> <paragraph id="H1129027522484121BEE0EF59177DC263"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HB330F2777C414B8C83D6BAF85E8CA5FF" display-inline="no-display-inline"> <paragraph id="HD727F0EE55F2424F977D0485E541D3CA"><enum>(2)</enum><header>Periodic adjustments to thresholds</header> <subparagraph id="H65E30977A7884B0F8F1C5DDC2765ADDF"><enum>(A)</enum><header>In general</header><text>By April 1, 2031, and the 1st day of each subsequent 5-year period, the Bureau shall—</text> <clause id="HC867F8902C7C409AAF81CE3A084EBB53"><enum>(i)</enum><text>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</text></clause> <clause id="H035CD27FD65842CDB7ABE1270BCBB664"><enum>(ii)</enum><text>publish such increase in the Federal Register.</text></clause></subparagraph> <subparagraph id="HE179EC13F5B34DE0B76472200E05141A"><enum>(B)</enum><header>Rounding</header><text display-inline="yes-display-inline">The amount of an increase calculated under subparagraph (A) shall be rounded to the nearest $1,000,000,000.</text></subparagraph> <subparagraph id="HAA450BE2BCED461FB311A188106FA44F"><enum>(C)</enum><header>Effective date</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HFEFD9B3C8A9846569A7BF32ACA199D20"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Section 1026 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5516">12 U.S.C. 5516</external-xref>) is amended by amending subsection (a) to read as follows:</text> <quoted-block style="OLC" id="H36454F8DAE344E35ADB4223259ED415D" display-inline="no-display-inline"> <subsection id="H309BC1BD3EB24735B454EA8104543289"><enum>(a)</enum><header>Scope of coverage</header><text display-inline="yes-display-inline">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).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HA71773583A5C452EBE2B08DE3C5DD1C3" commented="no"><enum>402.</enum><header>Supervisory election for covered institutions</header> <subsection id="H4252683BCCB14931A59C7AB98DFB3612"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1025 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5515">12 U.S.C. 5515</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H6C6447F93D63405A97651C794E88FF5E" display-inline="no-display-inline"> <subsection id="HB45B08AF60A3420DA30B5B33DD0CD2FD" commented="no"><enum>(f)</enum><header>Supervisory election for covered institutions</header> <paragraph id="H3758A15EC8A64B518582EA097CE32459" commented="no"><enum>(1)</enum><header>Election to remain under prudential supervision</header> <subparagraph id="H278B968C0A794F2DB7F9767AB4443414"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph> <subparagraph id="HED57DCB698DB4C05B6F3F003606CC454"><enum>(B)</enum><header>Automatic election for certain institutions</header><text display-inline="yes-display-inline">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).</text></subparagraph></paragraph> <paragraph id="HA57C43B111934B149081FBC7A1CE42FD"><enum>(2)</enum><header>Petition for Bureau supervision</header> <subparagraph id="H016ADB447C4B44AE93D2DE13EB7B5E6D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text> <clause id="H079831D7B92B4FD29A72A426B74339B7"><enum>(i)</enum><text display-inline="yes-display-inline">the insured depository institution or insured credit union presents heightened risks of substantial injury to consumers; and</text></clause> <clause id="H3E3317B459D54169AC8CB2E7E3DD041E"><enum>(ii)</enum><text display-inline="yes-display-inline">the appropriate prudential regulator has failed to adequately assess or address compliance with Federal consumer financial law.</text></clause></subparagraph> <subparagraph id="HDC0D09EF53D94687BE7EFBC518C4DBBE"><enum>(B)</enum><header>Response to petition</header><text display-inline="yes-display-inline">Not later than 60 days after receiving a petition under subparagraph (A), the appropriate prudential regulator shall—</text> <clause id="H49760D826F8E42BA815D15BF4CDC7C4B"><enum>(i)</enum><text display-inline="yes-display-inline">approve the petition; or</text></clause> <clause id="HDA249D9094854A3DACC7A648DB9A4C97"><enum>(ii)</enum><text display-inline="yes-display-inline">deny the petition in writing and include with such denial a detailed explanation of the reasons for such denial.</text></clause></subparagraph> <subparagraph id="H477AF47048074D2D95C61D8A7E0FFFCF"><enum>(C)</enum><header>Appeal of denial</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph> <paragraph id="HD2ACF4DAE13C4F0FB538E8958D03B9E6" commented="no"><enum>(3)</enum><header>Backup enforcement authority of the Bureau</header><text display-inline="yes-display-inline">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.</text> </paragraph> <paragraph id="HDC983F6124854D1B960A8C9EB03986D5"><enum>(4)</enum><header>Exclusion for GSIBs</header><text display-inline="yes-display-inline">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.</text> </paragraph> </subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB14D75BD2A084CC99E67E26926116454" display-inline="no-display-inline"><enum>(b)</enum><header>Supervision of depository institutions</header><text>Section 1025(b)(1)(C) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5515">12 U.S.C. 5515(b)(1)(C)</external-xref>) is amended by striking <quote>detecting and assessing associated risks to consumers and to markets for consumer financial products and services</quote> and inserting <quote>detecting and assessing associated risks of substantial injury to consumers</quote>.</text></subsection> </section> <section id="H5032CEA0396344F8B95415B67926809B"><enum>403.</enum><header>Financial regulatory coordination and accountability</header> <subsection id="HDBEDA98185AF49CCB29302034D3142B2"><enum>(a)</enum><header>Enhanced interagency coordination in rulemaking</header> <paragraph id="HD40199A4187640F193D54695F10787EE"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1022(b) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5512">12 U.S.C. 5512(b)</external-xref>) is amended—</text> <subparagraph id="HE9043C35199F432E8E1717BA1FAED100"><enum>(A)</enum><text>in paragraph (2), by amending subparagraph (B) to read as follows:</text> <quoted-block style="OLC" id="H22A5F30FF6D44C56A09088344E194A60" display-inline="no-display-inline"> <subparagraph id="H166DCED285E741939540D040B5A3C28E"><enum>(B)</enum><text display-inline="yes-display-inline">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</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H8DB81FE82E6F4706A5818B2B03376537"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H15E396FFDA054F80BF87EFC7F0A155EE" display-inline="no-display-inline"> <paragraph id="HF445989A024245159BD64987CF8C19E6"><enum>(5)</enum><header>Solicitation of comments from prudential regulators and State regulators</header> <subparagraph id="HEC978344696F4668830C734164D54DF7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text> <clause id="HC882F3A8408B45C9A876DB07A787098F"><enum>(i)</enum><text>each prudential regulator;</text></clause> <clause id="H838710ED9E5C4BFC9CDA789A2F58F536"><enum>(ii)</enum><text display-inline="yes-display-inline">the Conference of State Bank Supervisors, or a comparable organization representing State banking regulators;</text></clause> <clause id="HDF8B3BC756F64074B879C1F983D8A83C"><enum>(iii)</enum><text>the National Association of State Credit Union Supervisors, or a comparable organization representing State credit union supervisors;</text></clause> <clause id="H941073539E204AC5A1C37CCE495BF18B"><enum>(iv)</enum><text>each organization representing State financial regulators that license providers of consumer financial products or services; and</text></clause> <clause id="HC4FDEB08C3A14320B307A04590FBC490"><enum>(v)</enum><text>appropriate Tribal regulatory authorities, or an organization representing such authorities.</text></clause> </subparagraph> <subparagraph id="HA219DFF81FAB465BB242515B37BF409F"><enum>(B)</enum><header>Comments</header><text>With respect to a proposed rule received under subparagraph (A)—</text> <clause id="H0BFA48B20E9642438022637CD0ECDE48"><enum>(i)</enum><text display-inline="yes-display-inline">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;</text></clause> <clause id="HC9308078320E45F5A2E19E873E3F1CB9"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text></clause> </subparagraph> <subparagraph id="HA4EC6F03A0BD45F7A1AFB2CF7AAE1AF2"><enum>(C)</enum><header>Publication of comments</header><text display-inline="yes-display-inline">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.</text></subparagraph> <subparagraph id="H1471908A216C4C81BF3705233BB6B2F4"><enum>(D)</enum><header>Response to interagency comments</header><text display-inline="yes-display-inline">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—</text> <clause id="H7F04D75FE14D4B058F4C4D8FB5C4FF3F"><enum>(i)</enum><text>a description of any changes made to the proposed rule in response to such comments; and</text></clause> <clause id="HF5576479ED18462CA570410E661EA7D6"><enum>(ii)</enum><text display-inline="yes-display-inline">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).</text></clause></subparagraph> <subparagraph id="HDBEFAB10B8464554973041B914B6C7E3"><enum>(E)</enum><header>Minimum comment period</header><text display-inline="yes-display-inline">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).</text></subparagraph> <subparagraph id="HE576741AD61D4D49844A2DDF5C270C18" commented="no"><enum>(F)</enum><header>Coordination with small business review</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection> <subsection id="H5F4D79A0D9C44983A006A9745791A14D"><enum>(b)</enum><header>Formalized coordination for enforcement actions</header> <paragraph id="H01E64E3F68964A88860340CAA5EF700F"> <enum>(1)</enum> <header>In general</header> <text display-inline="yes-display-inline">Subtitle E of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5561">12 U.S.C. 5561 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H29CABA3DF4D04709AB31E75D6E6BC4FB" display-inline="no-display-inline"> <section id="H773BB5EFCB8343B6A9920B660B7AF186"> <enum>1059.</enum> <header>Interagency coordination on Bureau enforcement actions against depositories</header> <subsection id="H38E9642445ED404E801165439FF56EBC"> <enum>(a)</enum> <header>In general</header> <text display-inline="yes-display-inline">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—</text> <paragraph id="H815F2828E417445AAA7CAC7BA17033AC"> <enum>(1)</enum> <text display-inline="yes-display-inline">provide advance written notice of the contemplated action to—</text> <subparagraph id="H69F1C48CA2D54427B6CEAF4366552C5A"> <enum>(A)</enum> <text>the appropriate prudential regulator; and</text> </subparagraph> <subparagraph id="HB240C74DE66545BCB53509956A94814E"> <enum>(B)</enum> <text>any relevant State regulator; and</text> </subparagraph> </paragraph> <paragraph id="H652B1F4585A64ECA8BA9CC2B7B523C1C"> <enum>(2)</enum> <text display-inline="yes-display-inline">provide such regulators with a reasonable opportunity to provide the Bureau with views and recommendations on such contemplated action; and</text> </paragraph> <paragraph id="H22807C4BECD84572AEE795C27C6C4549"> <enum>(3)</enum> <text>consider such views and recommendations in good faith before undertaking such contemplated action.</text> </paragraph> </subsection> <subsection id="HCD0620316E8F4A019EA66E96FED8008A"> <enum>(b)</enum> <header>Avoidance of duplication and conflict</header> <text display-inline="yes-display-inline">The Bureau shall, to the maximum extent practicable—</text> <paragraph id="HA98639D9019749BCA87B5B9362F10504"> <enum>(1)</enum> <text>avoid duplicative enforcement actions;</text> </paragraph> <paragraph id="HEA1EB3F3F9DF4D2E9307F84D9019A482"> <enum>(2)</enum> <text>avoid remedies that conflict with actions taken by a prudential regulator or State regulator; and</text> </paragraph> <paragraph id="H30825C2BF8AB43238585B79065824736"> <enum>(3)</enum> <text>coordinate the timing and scope of any action described in subsection (a) to minimize regulatory burden.</text> </paragraph> </subsection> </section> <after-quoted-block>.</after-quoted-block> </quoted-block> </paragraph> <paragraph id="HA0278FCE5756421A96F202088D8E41CE"><enum>(2)</enum><header>Clerical amendment</header><text>The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 1058 the following:</text> <quoted-block style="OLC" id="H6F66C8BD2535449497F41968B26E2A6E" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 1059. Interagency coordination on Bureau enforcement actions against depositories.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H039CDD1F307649309F620085D82C1D1E"><enum>(c)</enum><header>Rule of application</header><text display-inline="yes-display-inline">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.</text></subsection></section> <section id="HF7C969D144EF428BA1BD905FEBBB8BB0"><enum>404.</enum><header>Reforms to nonbank supervision</header><text display-inline="no-display-inline">Section 1024 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5514">12 U.S.C. 5514</external-xref>) is amended—</text> <paragraph id="H76FDC6DAEB834BDF9CFC100569190FD6"> <enum>(1)</enum> <text>by striking <quote>risks to consumers</quote> each place such term appears and inserting <quote>substantial injury to consumers</quote>;</text> </paragraph> <paragraph id="HBF121FF9D9EB4ECD8345D9D2FF3AF08A"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="H01534ED027764F56A9E68743B65CAAD2"><enum>(A)</enum><text>in paragraph (1)(C), by inserting <quote>of at least 90 days</quote> after <quote>reasonable opportunity</quote>;</text></subparagraph> <subparagraph id="H09B4546F35DA41A9A07BEE5D05604041"><enum>(B)</enum><text>in paragraph (2), by adding at the end the following: <quote>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.</quote>; and</text></subparagraph> <subparagraph id="HBE1274301D2E4C5EA26C1E352C35BC69"><enum>(C)</enum><text>in paragraph (3)(A), by inserting before the period the following: <quote>or to a small business concern (as defined in section 3 of the Small Business Act)</quote>;</text></subparagraph> </paragraph> <paragraph id="H65713674100042B5803A5EC7D67FB016"><enum>(3)</enum><text>in subsection (b)(2), by striking <quote>risks posed to consumers</quote> and inserting <quote>risk of substantial injury to consumers</quote>; and</text></paragraph> <paragraph id="HCF621F7426FF4F0CB16E34BDCE26768E"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H591C9410F7A34EC7BFA62BCFE7255FB2" display-inline="no-display-inline"> <subsection id="HB325D5BC029D428EA22AE9372C7F84CB"><enum>(f)</enum><header>Limitation on supervisory authority</header><text display-inline="yes-display-inline">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.</text></subsection> <subsection id="H20AAC1C9504E40EFA3E941196B727113"><enum>(g)</enum><header>Market defined</header><text display-inline="yes-display-inline">In this section, and other than in the context of a geographic market, the term <term>market</term> means consumer financial products or services that—</text> <paragraph id="HC53071F3BCA04D2EAB86CD47C4F3687A"><enum>(1)</enum><text>share the same primary consumer purpose; and</text></paragraph> <paragraph id="H738292E320A541C0B415A6C8D9753917"><enum>(2)</enum><text>are reasonably interchangeable by consumers.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <enum>V</enum><header>Preventing Regulation by Enforcement</header> <section id="HEB6A691D36B3455599E555624836815E" section-type="subsequent-section"><enum>501.</enum><header>Civil Money Penalties</header> <subsection id="H167B7E86E6E047D184770CDE1DF28EF3"> <enum>(a)</enum> <header>In general</header> <text display-inline="yes-display-inline">Section 1055(c) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5565">12 U.S.C. 5565(c)</external-xref>), is amended—</text> <paragraph id="HBCF2F87AA92F4C2793E48E8DDFDC4D94"> <enum>(1)</enum> <text display-inline="yes-display-inline">in paragraph (2)—</text> <subparagraph id="H046AB794F552480B9116F581B5E43B2C"> <enum>(A)</enum> <text>in subparagraph (B), in the heading, by striking <quote><header-in-text level="subparagraph" style="OLC">Second tier</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">First tier</header-in-text></quote>;</text> </subparagraph> <subparagraph id="H0246DAEE124345DE976333B3E03FE024"> <enum>(B)</enum> <text>in subparagraph (C)—</text> <clause id="H3AABD3FB40E44D1EB169A12C293DE20E"> <enum>(i)</enum> <text display-inline="yes-display-inline">in the heading, by striking <quote><header-in-text level="subparagraph" style="OLC">Third tier</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Second tier</header-in-text></quote>; and</text> </clause> <clause id="H274F5AAA569842EEB775ACC198643943"> <enum>(ii)</enum> <text>by striking <quote>$1,000,000</quote> and inserting <quote>$50,120</quote>;</text> </clause> </subparagraph> <subparagraph id="H9F311F1C35B44726A2E8AF182359219C"> <enum>(C)</enum> <text>by striking subparagraph (A); and</text> </subparagraph> <subparagraph id="H69732B5BEE5A4DC99A2DB34726EA6806"> <enum>(D)</enum> <text>by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and</text> </subparagraph> </paragraph> <paragraph id="HB817495EEE0543D9BE1DCA533FDD4E2E"> <enum>(2)</enum> <text>in paragraph (3)—</text> <subparagraph id="H6FA7802719EF4681A434E631EFB988DD"> <enum>(A)</enum> <text>in subparagraph (D), by striking <quote>and</quote> at the end;</text> </subparagraph> <subparagraph id="HC66F0B911A1C41B6AE8C5B8AC2068AFE"> <enum>(B)</enum> <text>by redesignating subparagraph (E) as subparagraph (F); and</text> </subparagraph> <subparagraph id="H0C38D5F709E942ABBAF9BA586EA3F47D"> <enum>(C)</enum> <text>by inserting after subparagraph (D) the following:</text> <quoted-block style="OLC" id="H8B089F9E98CC4D979C0273D7B0E9138B" display-inline="no-display-inline"> <subparagraph id="H2D960C334FC0438C8F1B59A893603E73"> <enum>(E)</enum> <text display-inline="yes-display-inline">whether the person charged self-reported the violation; and</text> </subparagraph> <after-quoted-block>.</after-quoted-block> </quoted-block> </subparagraph> </paragraph> </subsection> <subsection id="H0D0054BD718044A9BEE6618A7A6A6190"><enum>(b)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">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—</text> <paragraph id="H90A02BE0066B49D0A899131AED7B7946"><enum>(1)</enum><text>implements the amendments made by this section; and</text></paragraph> <paragraph id="H02D8479624744936AE63E5BD0E4303F9"><enum>(2)</enum><text display-inline="yes-display-inline">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).</text></paragraph></subsection> <subsection id="HBA50CD3F92BA4AE58F2260F4988BD5DB"><enum>(c)</enum><header>Civil money penalty matrix</header><text display-inline="yes-display-inline">Section 1055(c) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5565">12 U.S.C. 5565(c)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="HDA31B4B989144A1AB3A3EE2DBC924075" display-inline="no-display-inline"> <paragraph id="HBC5D0A07A2E3486D9EC131ECBEC9B04D"><enum>(6)</enum><header>Civil money penalty matrix</header><text display-inline="yes-display-inline">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).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H9BCD75CBA2234DD3918990501E16D285" section-type="subsequent-section" display-inline="no-display-inline"><enum>502.</enum><header>Limitations on market monitoring functions</header><text display-inline="no-display-inline">The Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5481">12 U.S.C. 5481 et seq.</external-xref>) is amended—</text> <paragraph id="H3E70AF4E40864465950FC34938B53C33"><enum>(1)</enum><text>in section 1022(c)(4)(C), by adding at the end the following: <quote>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.</quote>; and</text> </paragraph> <paragraph id="HBD465D61D88147F394CB844A5A67B52D" commented="no"><enum>(2)</enum><text>in section 1026(b), by striking <quote>, and to assess and detect risks to consumers and consumer financial markets</quote>.</text> </paragraph></section> <section id="H4D0032C03BC2419A87FDE25CA21BC52C" section-type="subsequent-section" display-inline="no-display-inline"><enum>503.</enum><header>Enforcement powers of the States</header><text display-inline="no-display-inline">Section 1042 of the Consumer Financial Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5552">12 U.S.C. 5552</external-xref>) is amended—</text> <paragraph id="H4350D483C64D419B8B2C1A9550AC1069"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H144AD2BB8798469F9E7D828D512B9D8A"><enum>(A)</enum><text>in paragraph (1), by striking <quote>Except as provided in paragraph (2)</quote> and inserting <quote>Except as provided in paragraphs (2) and (4)</quote>; and</text></subparagraph> <subparagraph id="HA39CFB09F37749ACB3EB0FAB92917E45"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H1440827A5C854E809F69190F63E183AB" display-inline="no-display-inline"> <paragraph id="HCFED39BD156E4375B5AEA5B91BDCCBEA"><enum>(4)</enum><header>Prohibition on enforcement</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="H3BD8A0B00FA540D79DDF74311750FDAF"><enum>(5)</enum><header>Application of limitations</header><text display-inline="yes-display-inline">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.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HBF1AF36370754A3DB85CE0155FA46051"><enum>(2)</enum><text>in subsection (b)(2)—</text> <subparagraph id="H6825C2CB789A4EE7B5546EF1D5608E71"><enum>(A)</enum><text>by redesignating subparagraphs (A), (B), and (C) as subparagraphs (B), (C), and (D), respectively; and</text></subparagraph> <subparagraph id="H6458F5D4AB3443DFB54B19826757D269"><enum>(B)</enum><text>by striking <quote>the Bureau may—</quote> and inserting <quote>the Bureau may—</quote></text> <quoted-block style="OLC" id="H170A3F17BF254B9282A470F9DDFF3775" display-inline="no-display-inline"> <subparagraph id="HDA47DBD64E934006AD259C44CB159632"><enum>(A)</enum><text display-inline="yes-display-inline">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; </text></subparagraph> <after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H0DEB6AD17598442EAC14876505C936F6"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="H78DA3CC25AA84155BF6F85CC1BBBD3C6" display-inline="no-display-inline"> <subsection id="H1AD7F2CB78D04C87AC60FBC279B5BED7"><enum>(e)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">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.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H7AF44AAB7BC04C79A5C96D2AACA204D5"><enum>504.</enum><header>Indexing of asset-based thresholds in regulations</header> <subsection id="HAEE021790B76431B83DD14E660BDFDCC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1022 of the Consumer Financial Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5512">12 U.S.C. 5512</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="HE70E06000A2E43B9A690470F74950146" display-inline="no-display-inline"> <subsection id="HB73AB4890710419DB0B488F2C6DB6651"> <enum>(e)</enum> <header>Periodic adjustment for asset-Based thresholds in regulations</header> <paragraph id="HE85A12501D5C40B09CF70192734A60AC"> <enum>(1)</enum> <header>In general</header> <text display-inline="yes-display-inline">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.</text> </paragraph> <paragraph id="HC3EE42C7C41849DFB4F16EF5AD91FDE3"> <enum>(2)</enum> <header>Rounding</header> <text display-inline="yes-display-inline">Each threshold adjustment made pursuant to paragraph (1) shall be rounded—</text> <subparagraph id="HCDF7572834364F19A3281D94D791CBBC"> <enum>(A)</enum> <text>to the nearest $1,000,000, for thresholds equal to or greater than $1,000,000,000;</text> </subparagraph> <subparagraph id="HD1E84B4C4BDB4C6388DB40EA9AF15888"> <enum>(B)</enum> <text>to the nearest $100,000, for thresholds equal to or greater than $100,000,000 but less than $1,000,000,000; and</text> </subparagraph> <subparagraph id="H2C4A21AD60AB4D8FA3EA06D73FE79EFB"> <enum>(C)</enum> <text>to the nearest $10,000, for thresholds less than $100,000,000.</text> </subparagraph> </paragraph> <paragraph id="H39CC8E6E6D7C48FDAA55888D1837AE6B"> <enum>(3)</enum> <header>Asset-based threshold defined</header> <text display-inline="yes-display-inline">In this subsection, the term <term>asset-based threshold</term> 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.</text> </paragraph> </subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H2C1487B1B38844449BC12D24828FBF9F"><enum>(b)</enum><header>Initial identification of thresholds</header><text display-inline="yes-display-inline">Not later than 1 year after the date of enactment of this Act, the Bureau of Consumer Financial Protection shall—</text> <paragraph id="HF690A065C5134F49BF5665CD5479679E"><enum>(1)</enum><text display-inline="yes-display-inline">identify each asset-based threshold described in section 1022(e) of the Consumer Financial Protection Act; and</text></paragraph> <paragraph id="HD6A90EACA2A24E86B3A05805D1D41628"><enum>(2)</enum><text>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.</text></paragraph></subsection> <subsection id="H59EAE3D72BBE468E96AD8A86C06A86D7"><enum>(c)</enum><header>Initial indexing of thresholds</header><text display-inline="yes-display-inline">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—</text> <paragraph id="HD31D86BF464C4B3AB5B86796F5CE8B2F"><enum>(1)</enum><text>the date on which the threshold was originally established in regulation; and</text></paragraph> <paragraph id="HF77E2DED248C40549AA708531A0DAF7A"><enum>(2)</enum><text>the date on which the Bureau publishes the list required under subsection (b).</text></paragraph></subsection> </section> <section id="HCA10529BD46C4170A6A78CE6AB81E15F" display-inline="no-display-inline" section-type="subsequent-section"><enum>505.</enum><header>Collecting and tracking complaints</header><text display-inline="no-display-inline">Section 1013(b)(3) of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5493">12 U.S.C. 5493(b)(3)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" id="HDD4BE255F83545E5814F7423EDB019C1" display-inline="no-display-inline"> <subparagraph id="H221A26C55EA94BE79488F3B1CBA8F6DA"><enum>(E)</enum><header>Consumer Attestation</header> <clause id="H8FAE07174B0648489CA2D9F90F404F70"><enum>(i)</enum><header>In general</header><text>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—</text> <subclause id="H06844EEF6EB54B15B8B78DABCA6E9C92"><enum>(I)</enum><text>the information and documentation provided in the complaint is true and accurate to the best of the consumer’s knowledge;</text></subclause> <subclause id="H54527DA35CB54FA9889E9FD2FA15596E"><enum>(II)</enum><text display-inline="yes-display-inline">the complaint is being submitted directly by—</text> <item id="HB319CBEAD0074EAEBF8736AE97EEA5B6"><enum>(aa)</enum><text>the consumer; or</text></item> <item id="H46CFC8B31D67447485122C850B2E8F71"><enum>(bb)</enum><text display-inline="yes-display-inline">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</text></item></subclause> <subclause id="H5D8249DD48A04A49AD9BAD46D4177BA9"><enum>(III)</enum><text display-inline="yes-display-inline">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.</text></subclause></clause> <clause id="HE953784541A7494FA86A83AAE57BB248"><enum>(ii)</enum><header>Notification requirement</header><text display-inline="yes-display-inline">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—</text> <subclause id="HF9004FE5EE934A2A827B9A34140D1B5E"><enum>(I)</enum><text>inform the consumer in whose name the complaint was filed that such complaint was submitted in their name, without their authorization; and</text></subclause> <subclause id="H4B7A0F7F3B3044F0A72215F887D7E572"><enum>(II)</enum><text display-inline="yes-display-inline">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.</text></subclause></clause> <clause id="H697781A80EF44C64AA21C37C5F6F5B8C"><enum>(iii)</enum><header>Sufficient proof of identification defined</header><text display-inline="yes-display-inline">The term <term>sufficient proof of identification</term> means information or documentation that identifies a protected consumer and a protected consumer’s representative and includes—</text> <subclause id="H85683294388B4C4F814C0E77DD9CB523"><enum>(I)</enum><text>a social security number or a copy of a social security card issued by the Social Security Administration;</text></subclause> <subclause id="H9417B5B43CAE4F80B28FB2CE07504A5B"><enum>(II)</enum><text>a certified or official copy of a birth certificate issued by the entity authorized to issue the birth certificate; or</text></subclause> <subclause id="H0181CA21AC4C48CF9AE2023624FA5D73"><enum>(III)</enum><text>a copy of a driver’s license, an identification card issued by the motor vehicle administration.</text></subclause></clause></subparagraph> <subparagraph id="H71BD0620C30F402AAC632E5D27FBC7CA"><enum>(F)</enum><header>Closure of duplicative, frivolous or unauthorized complaints</header><text display-inline="yes-display-inline">—</text> <clause id="H5B1D8DFDF17441A4B091852956E7CE2A"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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—</text> <subclause id="H5A52093D1C574A0B988FC1A896F7BECB"><enum>(I)</enum><text>the complaint, as determined by such covered person—</text> <item id="H5C7CF7497A904451AC5DDF5BD6DEF47C"><enum>(aa)</enum><text>is duplicative of a previously submitted and resolved complaint submitted by the same consumer relating to the same issue;</text></item> <item id="H28D9089153AF4A539D0A711ED4C9BF54"><enum>(bb)</enum><text>is frivolous or lacking a basis in fact;</text></item> <item id="HCFB08341E5884F3198A9715BE0475746"><enum>(cc)</enum><text display-inline="yes-display-inline">was not submitted by the consumer or an individual authorized to act on the behalf of the consumer; or</text></item> <item id="HA526B6EE93BA42A6A75829F94A24F464"><enum>(dd)</enum><text>was submitted for a fraudulent or misleading purpose;</text></item></subclause> <subclause id="H6CD69543AAA445128A7DAE6468AD0142" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">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</text></subclause> <subclause id="HC3789C50912E4D039261FEE32BE80387" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">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</text></subclause> </clause> <clause id="HDE053059751A4031A79B55E1677D76D3"><enum>(ii)</enum><header>Recording</header><text display-inline="yes-display-inline">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.</text></clause></subparagraph> <subparagraph id="HDB2FF53F2D5F403C99D133FDAB5565AE"><enum>(G)</enum><header>Confidentiality</header> <clause id="H175774F94BFE451482EEE8CC673FF655"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></clause> <clause id="HA121DC13825744348A1201E80927EDF2"><enum>(ii)</enum><header>Aggregation of data</header><text display-inline="yes-display-inline">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.</text></clause></subparagraph> <after-quoted-block>.</after-quoted-block></quoted-block> </section> <section id="H6B6B2BD9666149DAA3FA253E67F29DB2"><enum>506.</enum><header>Enhancements to small business loan privacy</header><text display-inline="no-display-inline">Section 704B(e)(4) of the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691c-2">15 U.S.C. 1691c–2(e)(4)</external-xref>) is amended—</text> <paragraph id="H2FA1E9A1D84E4812882795F62F99E171"><enum>(1)</enum><text>by striking <quote>The Bureau may,</quote> and inserting:</text> <quoted-block style="OLC" id="HFFBF6B4808404796A52F38D533B60E58" display-inline="no-display-inline"> <subparagraph id="H9DD28342303C415FA869E15E55CA549F"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Bureau may,</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HF0BEC75983244E5498CE9291C1CD250D"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" id="HFEFBFF6535F84CE9A2D670B6052BDFEC" display-inline="no-display-inline"> <subparagraph id="H8D2107121DA140FB8EE7BA62800A0956"><enum>(B)</enum><header>Rulemaking requirement</header><text display-inline="yes-display-inline">The Bureau shall, before deleting or modifying data under this paragraph, issue, through advance notice and comment, a rule that includes a description of what modifications and deletions the Bureau intends to make to the data and how such modifications and deletions will advance a privacy interest.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>