[Congressional Record Volume 164, Number 41 (Thursday, March 8, 2018)]
[Senate]
[Pages S1590-S1592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2170. Mr. MERKLEY (for himself, Mr. Durbin, and Mrs. Murray)
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 end of title III, add the following:
SEC. 308. EXTENSION OF CONSUMER CREDIT.
(a) Consumer Control Over Bank Accounts.--
(1) Prohibiting unauthorized remotely created checks.--
Section 905 of the Electronic Fund Transfer Act (15 U.S.C.
1693c) is amended by adding at the end the following:
``(d) Limitations on Remotely Created Checks.--
``(1) Definition.--In this subsection--
``(A) the term `remotely created check' means a check,
including a paper or electronic check and any other payment
order
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that the Bureau, by rule, determines is appropriately covered
under this subsection, that--
``(i) is not created by the financial institution that
holds the customer account from which the check is to be
paid; and
``(ii) does not bear a signature applied, or purported to
be applied, by the person from whose account the check is to
be paid; and
``(B) the term `Federal consumer financial law' has the
meaning given the term in section 1002 of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5481).
``(2) Limitations.--Subject to the limitations in paragraph
(3) and any additional limitations that the Bureau may
establish, by rule, a remotely created check may only be
issued by a person designated in writing by a consumer, with
that written designation specifically provided by the
consumer to the insured depository institution at which the
consumer maintains the account from which the check is to be
drawn.
``(3) Additional limitations.--
``(A) In general.--A designation provided by a consumer
under paragraph (2) may be revoked at any time by the
consumer.
``(B) Consumer financial protection laws.--No payment
order, including a remotely created check, may be issued by
any person in response to the exercise of, or attempt to
exercise, any right by a consumer under--
``(i) any Federal consumer financial law; or
``(ii) any other provision of any law or regulation within
the jurisdiction of the Bureau.''.
(2) Consumer protections for certain one-time electronic
fund transfers.--Section 913 of the Electronic Fund Transfer
Act (15 U.S.C. 1693k) is amended--
(A) in the matter preceding paragraph (1), by inserting
``(a) In General.--'' before ``No person'';
(B) in subsection (a)(1), as so designated, by striking
``preauthorized electronic fund transfers'' and inserting
``an electronic fund transfer''; and
(C) by adding at the end the following:
``(b) Treatment for Electronic Fund Transfers in Credit
Extensions.--If a consumer voluntarily agrees to repay an
extension of a small-dollar consumer credit transaction, as
defined in section 110(a) of the Truth in Lending Act, by
means of an electronic fund transfer, the electronic fund
transfer shall be treated as a preauthorized electronic fund
transfer subject to the protections of this title.''.
(b) Transparency and Consumer Empowerment in Small-dollar
Lending.--
(1) Small-dollar consumer credit transactions.--
(A) In general.--The Truth in Lending Act (15 U.S.C. 1601
et seq.) is amended--
(i) by inserting after section 109 (15 U.S.C. 1608) the
following:
``SEC. 110. REGISTRATION REQUIREMENT FOR SMALL-DOLLAR
LENDERS.
``(a) Definition.--In this section, the term `small-dollar
consumer credit transaction'--
``(1) means any transaction that extends credit that is--
``(A) made to a consumer in an amount that--
``(i) is not more than--
``(I) $5,000; or
``(II) such greater amount as the Bureau may, by rule,
determine; and
``(ii) shall be adjusted annually to reflect changes in the
Consumer Price Index for all urban consumers published by the
Department of Labor; and
``(B) extended pursuant to an agreement that is--
``(i)(I) other than an open end credit plan; and
``(II) payable in 1 or more installments of less than 12
months (or such longer period as the Bureau may, by rule,
determine);
``(ii) an open end credit plan in which each advance is
fully repayable within a defined time or in connection with a
defined event, or both; or
``(iii) any other plan as the Bureau determines, by rule;
and
``(2) includes any action that facilitates, brokers,
arranges, or gathers applications for a transaction described
in paragraph (1).
``(b) Registration Requirement.--A person shall register
with the Bureau before issuing credit in a small-dollar
consumer credit transaction.''; and
(ii) in section 173 (15 U.S.C. 1666j), by adding at the end
the following:
``(d) Notwithstanding any other provision of this title,
any small-dollar consumer credit transaction, as defined in
section 110(a), shall comply with the laws of the State in
which the consumer to which credit in the transaction is
extended resides with respect to annual percentage rates,
interest, fees, charges, and such other similar or related
matters as the Bureau may, by rule, determine if the small-
dollar consumer credit transaction is--
``(1) made over--
``(A) the Internet;
``(B) telephone;
``(C) facsimile;
``(D) mail;
``(E) electronic mail; or
``(F) other electronic communication; or
``(2) conducted by a national bank.''.
(B) Technical and conforming amendment.--The table of
sections for chapter 1 of the Truth in Lending Act (15 U.S.C.
1601 et seq.) is amended by inserting after the item relating
to section 109 the following:
``110. Registration requirement for small-dollar lenders.''.
(2) Prohibition on certain fees.--Section 915 of the
Electronic Fund Transfer Act (15 U.S.C. 1693l-1) is amended--
(A) in subsection (b)(2)(D), by striking ``subsection (d)''
and inserting ``subsection (e)'';
(B) by redesignating subsection (d) as subsection (e); and
(C) by inserting after subsection (c) the following:
``(d) Additional Fees Prohibited.--
``(1) Definition.--In this subsection, the term `prepaid
account' has the meaning given the term by rule of the
Bureau.
``(2) Prohibition.--With respect to the use of a prepaid
account by a consumer--
``(A) it shall be unlawful for any person to charge the
consumer a fee for an overdraft with respect to the prepaid
account, including a shortage of funds or a transaction
processed for an amount exceeding the account balance of the
prepaid account;
``(B) any transaction for an amount that exceeds the
account balance of the prepaid account may be declined,
except that the consumer may not be charged a fee for that
purpose; and
``(C) the Bureau may, by rule, prohibit the charging of any
fee so that the Bureau may--
``(i) prevent unfair, deceptive, or abusive practices; and
``(ii) promote the ability of the consumer to understand
and compare the costs of prepaid accounts.''.
(c) Restrictions on Lead Generation in Small-dollar
Consumer Credit Transactions.--
(1) 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. RESTRICTIONS ON LEAD GENERATION IN SMALL-DOLLAR
CONSUMER CREDIT TRANSACTIONS.
``(a) Definitions.--In this section--
``(1) the terms `Internet access service' and `Internet
information location tool' have the meanings given those
terms in section 231(e) of the Communications Act of 1934 (47
U.S.C. 231(e));
``(2) the term `sensitive personal financial information'
means a Social Security number, financial account number,
bank routing number, bank account number, or security or
access code that is immediately necessary to permit access to
the financial account of an individual; and
``(3) the term `small-dollar consumer credit transaction'
has the meaning given the term in section 110(a).
``(b) Identification Information.--Any person facilitating,
brokering, arranging for, or gathering applications for the
distribution of sensitive personal financial information in
connection with a small-dollar consumer credit transaction
shall prominently disclose information by which the person
may be contacted or identified, including for service of
process and for identification of the registrant of any
domain name registered or used.
``(c) Prohibition on Lead Generation in Small-dollar
Consumer Credit Transactions.--No person may facilitate,
broker, arrange for, or gather applications for the
distribution of sensitive personal financial information in
connection with a small-dollar consumer credit transaction
unless the person is directly providing the small-dollar
consumer credit to a consumer.
``(d) Rule of Construction.--
``(1) In general.--Nothing in this section may be construed
to limit the authority of the Bureau to further restrict
activities covered by this section.
``(2) Clarification.--For the purposes of this section, it
shall not be considered facilitating the distribution of
sensitive personal financial information in connection with a
small-dollar consumer credit transaction to be engaged solely
in 1 of the following activities:
``(A) The provision of a telecommunications service, an
Internet access service, or an Internet information location
tool.
``(B) The transmission, storage, retrieval, hosting,
formatting, or translation (or any combination thereof) of a
communication, without selection or alteration of the content
of the communication, except the deletion of a particular
communication or material made by another person in a manner
that is consistent with section 230(c) of the Communications
Act of 1934 (47 U.S.C. 230(c)).''.
(2) Technical and conforming amendment.--The table of
sections for chapter 2 of the Truth in Lending Act (15 U.S.C.
1631 et seq.) is amended by adding at the end the following:
``140B. Restrictions on lead generation in small-dollar consumer credit
transactions.''.
(d) Studies.--
(1) Definitions.--In this subsection--
(A) the term ``appropriate committees of Congress'' means--
(i) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(ii) the Committee on Indian Affairs of the Senate;
(iii) the Committee on Financial Services of the House of
Representatives; and
(iv) the Committee on Natural Resources of the House of
Representatives; and
(B) the term ``Indian tribe'' has the meaning given the
term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304).
(2) Study required.--Not later than 180 days after the date
of enactment of this Act, the Comptroller General of the
United States shall conduct a study regarding--
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(A) the availability of capital on reservations of Indian
tribes; and
(B) the impact that small-dollar consumer credit extended
through Internet and non-Internet means to members of Indian
tribes has had on economic opportunity and wealth for members
of Indian tribes.
(3) Consultation.--In conducting the study required under
paragraph (2), the Comptroller General of the United States
shall consult, as appropriate, with--
(A) the Bureau of Consumer Financial Protection;
(B) the Board of Governors of the Federal Reserve System;
(C) the Director of the Bureau of Indian Affairs;
(D) federally recognized Indian tribes; and
(E) community development financial institutions operating
in Indian lands.
(4) Congressional consideration.--The Comptroller General
of the United States shall submit to the appropriate
committees of Congress the study required under paragraph
(2).
(e) Rule Making.--Not later than 1 year after the date of
enactment of this Act, the Bureau of Consumer Financial
Protection shall adopt any final rules necessary to implement
the provisions of this section and the amendments made by
this section.
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