[Congressional Record Volume 164, Number 40 (Wednesday, March 7, 2018)]
[Senate]
[Pages S1524-S1525]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2155. Mr. SANDERS submitted an amendment intended to be proposed
by him 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 appropriate place, insert the following:
[[Page S1525]]
SEC. ___. INTEREST RATE REDUCTION.
(a) National Consumer Credit Usury Rate.--Section 107 of
the Truth in Lending Act (15 U.S.C. 1606) is amended by
adding at the end the following new subsection:
``(f) National Consumer Credit Usury Rate.--
``(1) Limitation established.--Notwithstanding subsection
(a) or any other provision of law, but except as provided in
paragraph (2), the annual percentage rate applicable to any
extension of credit may not exceed 15 percent on unpaid
balances, inclusive of all finance charges. Any fees that are
not considered finance charges under section 106(a) may not
be used to evade the limitations of this paragraph, and the
total sum of such fees may not exceed the total amount of
finance charges assessed.
``(2) Exceptions.--
``(A) Board authority.--The Board may establish, after
consultation with the appropriate committees of Congress, the
Secretary of the Treasury, and any other interested Federal
financial institution regulatory agency, an annual percentage
rate of interest ceiling exceeding the 15 percent annual rate
under paragraph (1) for periods of not to exceed 18 months,
upon a determination that--
``(i) money market interest rates have risen over the
preceding 6-month period; and
``(ii) prevailing interest rate levels threaten the safety
and soundness of individual lenders, as evidenced by adverse
trends in liquidity, capital, earnings, and growth.
``(B) Treatment of credit unions.--The limitation in
paragraph (1) does not apply with respect to any extension of
credit by an insured credit union, as that term is defined in
section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
``(3) Penalties for charging higher rates.--
``(A) Violation.--The taking, receiving, reserving, or
charging of an annual percentage rate or fee greater than
that permitted by paragraph (1), when knowingly done, shall
be deemed a violation of this title, and a forfeiture of the
entire interest which the note, bill, or other evidence of
the obligation carries with it, or which has been agreed to
be paid thereon.
``(B) Refund of interest amounts.--If an annual percentage
rate or fee greater than that permitted under paragraph (1)
has been paid, the person by whom it has been paid, or the
legal representative thereof, may, by bringing an action not
later than 2 years after the date on which the usurious
collection was last made, recover back from the lender in an
action in the nature of an action of debt, the entire amount
of interest, finance charges, or fees paid.
``(4) Civil liability.--Any creditor who violates this
subsection shall be subject to the provisions of section 130.
``(g) 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 in
this section.''.
(b) Civil Liability Conforming Amendment.--Section 130(a)
of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended by
inserting ``section 107(f),'' before ``this chapter''.
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