[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10439 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10439
To amend the Truth in Lending Act to extend the consumer credit
protections provided to members of the Armed Forces and their
dependents under title 10, United States Code, to all consumers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 16, 2026
Mr. Grothman (for himself and Mr. Garcia of Illinois) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act to extend the consumer credit
protections provided to members of the Armed Forces and their
dependents under title 10, United States Code, to all consumers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veterans and Consumers Fair Credit
Act''.
SEC. 2. LIMITATIONS ON CONSUMER CREDIT AND MAXIMUM RATES OF INTEREST.
(a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C.
1631 et seq.) is amended by adding at the end the following:
``Sec. 140B. Limitations on consumer credit and maximum rates of
interest
``(a) Application of the Military Lending Act.--
``(1) In general.--Except as provided in paragraph (2),
section 987(b) of title 10, United States Code (commonly
referred to as the `Military Lending Act'), shall apply to a
creditor who extends consumer credit to a consumer to the same
extent as such section applies to a creditor who extends
consumer credit to a covered member or a dependent with respect
to a covered member (as those terms are defined in such section
987).
``(2) Exceptions.--Paragraph (1) shall not apply to an
extension of credit that is--
``(A) a residential mortgage;
``(B) a loan procured to purchase a car, when that
loan is offered for the express purpose of financing
the purchase and is secured by the car procured; or
``(C) a loan made by a Federal credit union (as
defined in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752)), subject to the usury limit provided
under section 107(5)(A) of the Federal Credit Union Act
(12 U.S.C. 1757(5)(A)), as implemented by the National
Credit Union Administration Board.
``(b) No Exemptions Permitted.--The exemption authority of the
Director of the Bureau under section 105(f) shall not apply with
respect to this section.
``(c) Calculation of the Annual Percentage Rate for Open-End
Credit.--
``(1) In general.--For purposes of this section, the annual
percentage rate applicable to an open end credit plan shall be
calculated under section 107(a)(2), subject to adjustments to
the amount considered a finance charge, as provided in the
final rule issued by the Secretary of Defense on July 22, 2015,
to carry out section 987 of title 10, United States Code.
``(2) Exception to finance charge calculation.--
``(A) In general.--Notwithstanding paragraph (1),
for consumer credit extended in a credit card account
under an open end consumer credit plan that is not
secured by a home, a bona fide fee other than a
periodic rate is not a charge required to be included
within the finance charge for purposes of this section
if the fee is assessed in compliance with section
127(n).
``(B) Limitation.--Subparagraph (A) shall not apply
to--
``(i) any credit insurance premium or fee,
including any charge for single premium credit
insurance, any fee for a debt cancellation
contract, or any fee for a debt suspension
agreement; or
``(ii) any fee for a credit-related
ancillary product sold in connection with the
credit card account under an open end consumer
credit plan that is not secured by a home.
``(d) Relation to State Law.--Nothing in this section may be
construed to preempt any provision of State law that provides greater
protection to consumers than is provided under this section.
``(e) Penalties and Remedies.--Section 987(f) of title 10, United
States Code, shall apply to a creditor who extends consumer credit to a
consumer in violation of this section to the same extent as such
section 987(f) applies to a creditor who extends consumer credit to a
covered member or a dependent with respect to a covered member (as
those terms are defined in such section 987).
``(f) Preservation of State Enforcement.--
``(1) State attorneys general.--Not later than 3 years
after the date on which a violation of this section occurs, the
attorney general of a State (or an equivalent official) may
bring a civil action on behalf of the residents of that State--
``(A) in any district court of the United States
that is located in that State or in a State court that
is located in that State and that has jurisdiction over
the defendant; and
``(B) to--
``(i) enforce compliance with the
requirements of this section or rules issued
under this section; and
``(ii) secure remedies under this section
or remedies otherwise provided under other law.
``(2) State regulators.--Not later than 3 years after the
date on which a violation of this section occurs, a State
regulator of a creditor may bring a civil action or initiate
another appropriate proceeding to--
``(A) enforce compliance with the requirements of
this section or regulations issued under this section
with respect to such creditor that is, or is required
to be, State-chartered, incorporated, licensed, or
otherwise authorized to do business under State law;
and
``(B) secure remedies under this section or
remedies otherwise provided under other provisions of
law with respect to such creditor.
``(3) Notice requirement.--
``(A) In general.--Before initiating an action
pursuant to paragraph (1) or (2) to enforce compliance
with the requirements of this section or rules issued
under this section, a State attorney general or State
regulator shall timely provide a copy of the complete
complaint to be filed and written notice describing
such action or proceeding to the Director of the Bureau
and the prudential regulator, if any, of the creditor.
``(B) Emergency action.--If prior notice is not
practicable, the State attorney general or State
regulator shall provide a copy of the complete
complaint and the notice to Director of the Bureau and
the prudential regulator, if any, immediately upon
instituting the action.
``(C) Contents of notice.--The notice required
under this paragraph shall, at a minimum, describe--
``(i) the identity of the parties;
``(ii) the alleged facts underlying the
proceeding; and
``(iii) whether there may be a need to
coordinate the prosecution of the proceeding so
as not to interfere with any action, including
any rulemaking, undertaken by Director of the
Bureau, a prudential regulator, or another
Federal agency.
``(4) Bureau response.--In any action described in
paragraph (1) or (2), the Bureau may--
``(A) intervene in the action as a party;
``(B) upon intervening, remove the action to the
appropriate United States district court (if the action
was not originally brought there) and be heard on all
matters arising in the action; and
``(C) appeal any order or judgment, to the same
extent as any other party in the proceeding may.
``(g) Regulations.--
``(1) In general.--Notwithstanding section 1027(o) of the
Consumer Financial Protection Act of 2010 (12 U.S.C. 5517(o)),
not later than 1 year after the date of enactment of this
section, the Bureau, in consultation with the Secretary of
Defense, shall--
``(A) issue rules carrying out this section; and
``(B) notify Congress and the public, including on
the website of the Bureau, regarding the issuance of
the rules required under subparagraph (A).
``(2) Consistency.--The rules issued by the Bureau under
paragraph (1)--
``(A) shall be consistent with rules issued by the
Secretary of Defense to carry out section 987 of title
10, United States Code; and
``(B) may not provide lesser protection to
consumers than the protection afforded covered members,
as that term is defined in section 987 of title 10,
United States Code, in applicable provisions in the
rules issued by the Secretary of Defense on July 22,
2015, to carry out such section 987.''.
(b) Clerical Amendment.--The table of contents for chapter 2 of the
Truth in Lending Act is amended by adding at the end the following:
``140B. Limitations on consumer credit and maximum rates of
interest.''.
(c) Applicability.--The amendments made by subsection (a) shall
apply to an extension of credit made after the earlier of--
(1) the date on which the rules issued by the Director of
the Bureau of Consumer Financial Protection under subsection
(g) of section 140B of the Truth in Lending Act, as added by
subsection (a) of this section, require compliance; and
(2) the date that is 18 months after the date of enactment
of this Act.
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