[Congressional Record Volume 169, Number 153 (Thursday, September 21, 2023)]
[Senate]
[Pages S4663-S4664]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1285. Mr. REED (for himself and Mr. Merkley) submitted an 
amendment intended to be proposed by him to the bill H.R. 4366, making 
appropriations for military construction, the Department of Veterans 
Affairs, and related agencies for the fiscal year ending September 30, 
2024, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. _____. 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, shall apply 
     to a creditor who extends consumer credit to a consumer to 
     the same extent as that section applies to a creditor who 
     extends consumer credit to a covered member or a dependent, 
     as those terms are defined in such section 987.
       ``(2) Exceptions.--Paragraph (1) shall not apply to--
       ``(A) a residential mortgage;
       ``(B) a loan procured in the course of purchasing a car if 
     the loan is offered--
       ``(i) for the express purpose of financing the purchase; 
     and
       ``(ii) is secured by the car; 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 rate of interest limit provided under section 
     107(5)(A)(vi) of that Act, as implemented by the National 
     Credit Union Administration Board.
       ``(b) No Exemptions Permitted.--The exemption authority 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 
     rules 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 (not home-secured) consumer credit plan, a bona fide 
     fee other than a periodic rate is not a charge required to be 
     included in 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

[[Page S4664]]

       ``(ii) any fee for a credit-related ancillary product sold 
     in connection with the credit card account under an open-end 
     (not home-secured) consumer credit plan.
       ``(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, 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 in the name 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 provisions of this section or rules issued 
     under this section; and
       ``(ii) secure remedies under provisions of 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 may bring a civil action or initiate another 
     appropriate proceeding to--
       ``(A) enforce the provisions of this section or regulations 
     issued under this section with respect to any entity 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 provisions of this section or 
     remedies otherwise provided under other provisions of law 
     with respect to an entity described in subparagraph (A).
       ``(3) Notice requirement; additional regulations.--
     Subsections (b), (c), and (d) of section 1042 of the Consumer 
     Financial Protection Act of 2010 (12 U.S.C. 5552), shall 
     apply to a civil action or other appropriate proceeding 
     brought or initiated under paragraph (1) or (2) to the same 
     extent as those subsections apply to actions and other 
     administrative and regulatory proceedings described in 
     subsection (a) of that section.
       ``(g) Regulations.--
       ``(1) In general.--Notwithstanding section 1027(o) of the 
     Consumer Financial Protection Act (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 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 that section.''.
       (b) Technical and Conforming 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 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.
                                 ______