[Congressional Record Volume 164, Number 39 (Tuesday, March 6, 2018)]
[Senate]
[Page S1384]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2059. Ms. WARREN submitted an amendment intended to be proposed by
her to the bill S. 2155, to promote economic growth, provide tailored
regulatory relief, and enhance consumer protections, and for other
purposes; which was ordered to lie on the table; as follows:
At the end of title III, add the following:
SEC. 3__. PREDISPUTE ARBITRATION.
Section 128(e) of the Truth in Lending Act (15 U.S.C.
1638(e)) is amended by adding at the end the following:
``(12) Predispute agreements and waivers.--
``(A) Definitions.--In this paragraph:
``(i) Postsecondary education loan.--The term
`postsecondary education loan'--
``(I) means a loan that is--
``(aa) made, insured, or guaranteed under part B, D, or E
of title IV of the Higher Education Act of 1965 (20 U.S.C.
1071 et seq., 1087a et seq., 1087aa et seq.); or
``(bb) issued or made by a postsecondary education lender
and is--
``(AA) extended to a borrower with the expectation that the
amounts extended will be used in whole or in part to pay
postsecondary education expenses; or
``(BB) extended for the purpose of refinancing or
consolidating 1 or more loans described in item (aa) or (bb);
``(II) includes a private education loan; and
``(III) does not include a loan--
``(aa) made under an open-end credit plan; or
``(bb) that is secured by real property.
``(ii) Student loan servicer.--The term `student loan
servicer'--
``(I) means a person who performs student loan servicing;
``(II) includes a person performing student loan servicing
for a postsecondary education loan on behalf of an
institution of higher education or the Secretary of Education
under a contract or other agreement;
``(III) does not include the Secretary of Education to the
extent the Secretary directly performs student loan servicing
for a postsecondary education loan; and
``(IV) does not include an institution of higher education,
to the extent that the institution directly performs student
loan servicing for a Federal Perkins Loan made by the
institution.
``(B) No waiver.--
``(i) In general.--A borrower may not waive any right or
remedy relating to a private education loan that is available
to the borrower against a private educational lender,
postsecondary education lender, loan holder, or student loan
servicer before the dispute as to which the right or remedy
relates arises.
``(ii) No force or effect.--Any waiver described in clause
(i) agreed to before, on, or after the date of enactment of
this paragraph shall not be enforceable and shall have no
force or effect.
``(C) Predispute arbitration agreements.--An agreement
entered before, on, or after the date of enactment of this
paragraph to arbitrate a dispute relating to a private
education loan that had not arisen at the time the agreement
was entered shall not be enforceable and shall have no force
or effect.''.
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