[House Report 118-787]
[From the U.S. Government Publishing Office]


118th Congress    }                                     {       Report
                          HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      118-787

======================================================================

 
               EARNED WAGE ACCESS CONSUMER PROTECTION ACT

                                _______
                                

December 3, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. McHenry, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 7428]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 7428) to regulate the business of offering and 
providing earned wage access services to consumers, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

                                CONTENTS

Purpose and Summary..............................................     4
Background and Need for Legislation..............................     5
Related Hearings.................................................     6
Committee Consideration..........................................     7
Committee Votes..................................................     7
Committee Oversight Findings.....................................    10
Performance Goals and Objectives.................................    10
Congressional Budget Office Estimates............................    10
New Budget Authority, Entitlement Authority, and Tax Expenditures    10
Federal Mandates Statement.......................................    10
Advisory Committee Statement.....................................    10
Applicability to Legislative Branch..............................    10
Earmark Identification...........................................    10
Duplication of Federal Programs..................................    11
Section-by-Section Analysis of the Legislation...................    11
Changes in Existing Law Made by the Bill, as Reported............    11
Minority Views...................................................    21

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Earned Wage Access Consumer Protection 
Act''.

SEC. 2. EARNED WAGE ACCESS SERVICES.

  (a) Provision of Earned Wage Access Services.--
          (1) No-cost option required.--If an earned wage access 
        provider offers a consumer the option to receive earned wages 
        in exchange for a fee, such earned wage access provider shall 
        also offer such consumer the option to obtain the same amount 
        of earned wages at no cost to the consumer.
          (2) Required disclosures.--
                  (A) Disclosures preceding agreement.--Each earned 
                wage access provider shall disclose the following 
                before entering into an agreement with a consumer:
                          (i) Any limits on the amount of earned wages 
                        a customer may request from such provider, 
                        including--
                                  (I) any limits on the amount of 
                                earned wages a consumer may request 
                                from the provider each day;
                                  (II) any limits on the amount of 
                                earned wages a consumer may request 
                                from the provider each pay period; and
                                  (III) any limits on the amount of 
                                earned wages a consumer may request 
                                from the provider that are based on a 
                                determination by the provider of the 
                                ratio between the amount of earned 
                                wages requested by the consumer and the 
                                total wages earned by the consumer, and 
                                how such determination is made.
                          (ii) Any fees that such provider may apply, 
                        and the amount of such fees, including fees 
                        relating to expedited disbursement and 
                        subscriptions.
                          (iii) A description of how the consumer may 
                        obtain earned wages without paying a fee.
                          (iv) An overview of such provider's use of 
                        voluntary payments that describes--
                                  (I) whether such provider will accept 
                                voluntary payments from the consumer 
                                and in what amounts; and
                                  (II) whether such provider will 
                                suggest the consumer provide voluntary 
                                payments and in what amounts.
                  (B) Disclosures preceding approval of request.--Each 
                earned wage access provider shall disclose the 
                following after approving any request from a consumer 
                for access to earned wages but before disbursing such 
                earned wages to such consumer:
                          (i) The account number such provider has 
                        assigned to the consumer, if applicable.
                          (ii) The amount of earned wages that will be 
                        provided to the consumer by such provider.
                          (iii) The total amount of any fees applied by 
                        such provider.
                          (iv) A list of any voluntary payments the 
                        consumer has agreed to provide.
                          (v) The amount that such provider intends to 
                        collect as repayment after disbursing the 
                        earned wages, the date on which such provider 
                        intends to collect such amount or a description 
                        of when such provider intends to collect such 
                        amount, and the manner in which such provider 
                        intends to collect such amount.
                  (C) Additional disclosures relating to voluntary 
                payments.--If an earned wage access provider solicits, 
                charges, or receives a voluntary payment from a 
                consumer, such provider--
                          (i) shall clearly and conspicuously disclose 
                        to the consumer, before the provider commences 
                        the transaction to which the voluntary payment 
                        is related, that such voluntary payment--
                                  (I) is voluntary;
                                  (II) is not a requirement for 
                                receiving earned wage access services; 
                                and
                                  (III) will not impact the frequency 
                                with which such earned wages are 
                                disbursed to such consumer; and
                          (ii) may not state that such voluntary 
                        payment will benefit any specific individual.
                  (D) Changes to terms.--Each earned wage access 
                provider shall notify each consumer with which such 
                earned wage access provider has entered an agreement to 
                offer earned wage access services of any material 
                changes to the terms and conditions of service used by 
                such provider not less than 30 days before such 
                material changes take effect.
                  (E) Regulations.--The Bureau shall, not less than 180 
                days after the date of the enactment of this section, 
                issue rules that govern the form and manner in which 
                the disclosures described in this section are provided 
                to consumers.
          (3) Cancellation of services.--If an earned wage access 
        provider makes earned wage access services available to a 
        consumer on a recurring basis, such earned wage access 
        provider--
                  (A) shall allow such consumer to discontinue such 
                services if such consumer provides reasonable notice to 
                such earned wage access provider that such consumer 
                desires to discontinue such services; and
                  (B) may not impose any financial penalty on such 
                consumer as a result of any discontinuation of 
                services.
          (4) Dispute process required.--Each earned wage access 
        provider shall develop and implement policies and procedures to 
        respond to questions and complaints from consumers relating 
        to--
                  (A) unauthorized disbursement of earned wages;
                  (B) disbursement of earned wages in an incorrect 
                amount;
                  (C) disbursed earned wages that were not received;
                  (D) repayment of disbursed earned wages that is not 
                received or was made in an incorrect amount; and
                  (E) voluntary payments that were not authorized or 
                were made in an incorrect amount.
          (5) Compelling repayment of disbursed wages.--
                  (A) In general.--An earned wage access provider may 
                not seek repayment of earned wages disbursed to a 
                consumer by such provider by--
                          (i) filing a civil suit;
                          (ii) initiating arbitration proceedings;
                          (iii) using the services of a debt collector 
                        (as such term is defined in section 803 of the 
                        Fair Debt Collection Practices Act); or
                          (iv) selling the rights to the repayment of 
                        the disbursed earned wages to a third-party 
                        debt buyer.
                  (B) Exceptions.--Subparagraph (A) shall not apply if 
                an earned wage access provider is--
                          (i) seeking repayment of earned wages 
                        disbursed to a consumer based on information 
                        provided by the consumer that the consumer knew 
                        was false; or
                          (ii) pursuing the employer of the consumer to 
                        which such provider disbursed earned wages for 
                        breach of its contractual obligations to the 
                        provider.
          (6) Reimbursement required.--If an earned wage access 
        provider seeks repayment of disbursed earned wages, payment of 
        a fee, or a voluntary payment directly from a deposit account 
        of a consumer, on an incorrect date or in an incorrect amount, 
        and such attempt triggers an overdraft fee or non-sufficient 
        funds fee from the financial institution of the consumer, the 
        earned wage access provider shall reimburse such consumer for 
        such fee.
          (7) Additional limitations.--An earned wage access provider 
        may not--
                  (A) share any fees, tips, gratuities, or other 
                donations that were received from or charged to a 
                consumer for earned wage access services with the 
                employer of such consumer;
                  (B) accept payment of fees or voluntary payments from 
                a consumer though a credit card of the consumer, unless 
                such credit card is provided to the consumer as a part 
                of the earned wage access service; or
                  (C) require a consumer to pay a late fee, deferral 
                fee, interest, or any other penalty or charge as a 
                result of a failure by the consumer to pay a fee, tip, 
                gratuity, or other donation requested or applied by 
                such provider.
          (8) Disclosure to employer.--An earned wage access provider 
        may disclose, to an employer with which such provider has a 
        contract relating to earned wage access services, only such 
        information about earned wage access services used by consumers 
        who are employees of such employer as is necessary for such 
        earned wage access provider to recover disbursed wages.
          (9) Non-discrimination.--It shall be unlawful for any earned 
        wage access provider to discriminate against any consumer on 
        the basis of race, color, religion, national origin, sex, 
        pregnancy, marital status, or age when offering earned wage 
        access services.
  (b) Rulemaking.--The Bureau may issue such rules as the Bureau 
determines appropriate to carry out this section.
  (c) Definitions.--In this section:
          (1) Bureau.--The term ``Bureau'' means the Bureau of Consumer 
        Financial Protection.
          (2) Consumer.--The term ``consumer'' means a natural person.
          (3) Earned wages.--
                  (A) In general.--The term ``earned wages'' means 
                salary, wages, compensation, or other income that a 
                consumer or an employer has represented and that an 
                earned wage access provider has reasonably determined 
                have been earned or have accrued to the benefit of the 
                consumer in exchange for the services provided by the 
                consumer, but that have not yet been paid to the 
                consumer by an employer.
                  (B) Services provided.--Services provided by the 
                consumer to the employer include any services 
                provided--
                          (i) on an hourly, project-based, piecework, 
                        or other basis; or
                          (ii) when the consumer is acting as a 
                        contractor of the employer.
          (4) Earned wage access services.--The term ``earned wage 
        access services'' means the delivery of earned wages to a 
        consumer based on--
                  (A) employment, income, or attendance data provided 
                by the employer of such consumer or a payroll service 
                vendor contracted by the employer of such consumer; or
                  (B) representations made by the consumer and the 
                reasonable determination of the earned proceeds of such 
                consumer by an earned wage access provider.
          (5) Earned wage access provider.--
                  (A) In general.--The term ``earned wage access 
                provider'' means a person who provides earned wage 
                access services to consumers.
                  (B) Exclusions.--The term ``earned wage access 
                provider'' does not include--
                          (i) a person who is not obligated to provide 
                        access to earned wages as part of an earned 
                        wage access service;
                          (ii) an employer that offers a portion of 
                        salary, wages, or compensation earned by a 
                        consumer directly to such consumer prior to a 
                        normally scheduled pay date;
                          (iii) a financial institution that permits a 
                        consumer to access amounts associated with an 
                        electronic fund transfer from the employer of 
                        the consumer for which the financial 
                        institution has received information but which 
                        has not yet settled; or
                          (iv) a payroll service vendor that 
                        facilitates payments to a consumer of wages 
                        earned by such consumer.
          (6) Payroll service vendor.--The term ``payroll service 
        vendor'' means a vendor contracted by an employer to facilitate 
        payment of employee wages in accordance with Federal, State, 
        and local law, including the Fair Labor Standards Act of 1938.
          (7) Voluntary payment.--The term ``voluntary payment'' means 
        any payment voluntarily made by a consumer to an earned wage 
        access provider when accessing earned wage services, including 
        a tip, gratuity, or donation.
  (d) Rule of Construction.--Voluntary payments and any fees paid by a 
consumer to an earned wage access provider may not be construed to be a 
``finance charge'' as such term is defined in the Truth in Lending Act.

SEC. 3. CONFORMING AMENDMENTS.

  Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended--
          (1) in subsection (f), by striking ``defer its payment'' and 
        inserting ``defer its payment, but does not include earned wage 
        access services as defined in the Earned Wage Access Consumer 
        Protection Act''; and
          (2) in subsection (g), by adding at the end the following: 
        ``The term creditor does not include earned wage access 
        providers as such term is defined in the Earned Wage Access 
        Consumer Protection Act.''.

                          Purpose and Summary

    Introduced on February 20, 2024, by Representative Bryan 
Steil, H.R. 7428, the Earned Wage Access Consumer Protection 
Act, clarifies that earned wages provided to consumers through 
EWA products are not considered credit, and any fees, tips, or 
donations paid by a consumer to an EWA provider are not 
considered finance charges. EWA providers would be required to 
implement policies and procedures around consumer disputes and 
disclose to consumers their rights under the EWA's service 
agreement. Providers would also be required to disclose the 
voluntary nature of any tip or gratuity and permit the consumer 
to cancel participation in the service upon reasonable notice 
without the provider imposing a fee. H.R. 7428 has six 
cosponsors and passed 28-22 on April 17, 2024.

                  Background and Need for Legislation

    For both hourly and salaried employees, dealing with an 
unexpected medical bill or car repair before payday can result 
in overdraft fees or increased debt. With earned wage access 
(EWA) products, an individual can access earned wages when 
necessary to avoid short-term liquidity crunches. During a 
hearing before the House Financial Services Subcommittee on 
Digital Assets, Financial Technology and Inclusion, Ram 
Palaniappan, CEO and founder of EWA provider EarnIn, cited a 
survey outlining the financial reality for most Americans, 
emphasizing ``two-thirds of our country lives paycheck to 
paycheck, and much of their lives revolve around waiting for 
payday.''
    There are two types of EWA products: an employer-based 
model or a direct-to-consumer model. Employer or payroll-
partnered EWA-providers work with an employer to manage earned 
wage information and offer access to an employee. EWA providers 
deposit earned wages directly to an employee's account or onto 
a prepaid card. The employer then collects the repayment amount 
through payroll deductions or account debits.
    Alternatively, in a direct-to-consumer model, providers 
work directly with consumers and typically observe inflow and 
outflow patterns in a consumer's bank account. The EWA provider 
will make available a certain advanced amount based on those 
patterns, at the consumer's request. Both types of EWA programs 
provide employees with options to help cover unexpected 
expenses or bridge the gap between pay periods.
    On November 30, 2020, the CFPB released an advisory opinion 
on EWA products. In the CFPB's opinion, the Bureau noted that 
``earned wage access products have recently emerged in the 
marketplace as an innovative way for employees to meet short-
term liquidity needs that arise between paychecks without 
turning to more costly alternatives.'' The CFPB further opined 
on whether EWA providers are offering or extending ``credit'' 
and concluded the ``covered EWA programs'' do not involve the 
offering or extension of credit. However, the CFPB's 
determination of ``covered EWA programs'' only addresses those 
programs that satisfy certain criteria. Due to the limited 
scope of the advisory opinion, the CFPB left many open 
questions regarding the direct-to-consumer EWA model.
    Additionally, on December 30, 2020, the CFPB issued a 
compliance assistance sandbox approval order to PayActiv for 
two years related to its EWA product with specific criteria. 
However, on June 22, 2022, the CFPB rescinded PayActiv's 
sandbox approval at the request of the company. The CFPB 
indicated it plans to issue further guidance to provide clarity 
surrounding EWA products. In his testimony, Mr. Palaniappan 
advocated for regulators and Congress to distinguish earned 
wage access products from revolving debt or installment loans, 
and cited Treasury's call for ``on-demand pay arrangements'' to 
be exempted from being considered loans in its 2022 and 2023 
budget proposal as a justification for this policy position. In 
addition, Mr. Palaniappan asserted, ``forcing EWA into the 
`credit' system seems to shoehorn a new consumer-friendly 
approach into a system that may disadvantage consumers, [and 
will lead to the] transfer [of] downside risk from providers to 
consumers . . . likely lead at least some EWA providers 
[resorting] to the most common credit-related fees, lead to 
negative credit reporting that could follow consumers around . 
. . [and] encourage more revolving debt.''
    At the state level, several states have recognized the 
importance of EWA and have made strides towards promoting 
accessibility to such products. In June and July 2023, Nevada 
and Missouri enacted laws to regulate EWA services offered 
within their states. Nevada implemented a licensing regime that 
requires all employer-based EWA models to obtain a license from 
the state. Licensed EWA entities must also comply with various 
disclosure and operating requirements. Missouri's EWA 
regulatory regime imposes similar requirements on both 
employer-based and consumer-based EWA service providers. 
Several other states are expected to consider legislative or 
regulatory action related to EWA as well. In his testimony, Mr. 
Palaniappan underscored some of the risks of leaving EWA 
regulation to the states, highlighting ``without federal 
guidelines for EWA, we have an inconsistent national landscape 
and a patchwork of state laws and ambiguity that leaves some 
Americans worse off.''
    H.R. 7428 requires that all EWA products be nonrecourse, 
include overdraft and non-sufficient fund fee protection, have 
comprehensive fee disclosure, possess mandatory dispute 
processes, and be barred from discrimination--all of which 
would be enforced by the CFPB. H.R. 7428 protects consumers 
while providing clarity for firms to provide a product that so 
many Americans utilize today.

                            Related Hearings

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearing was used to develop H.R. 7428:
    The Full Committee held a hearing on November 29, 2023 on 
the Semi-Annual Report of the Bureau of Consumer Financial 
Protection.
    The Subcommittee on Digital Assets, Financial Technology 
and Inclusion of the Committee on Financial Services held a 
hearing on October 25, 2023, titled ``Modernizing Financial 
Services Through Innovation and Competition.''
    The Full Committee held a hearing on June 14, 2023 on the 
Semi-Annual Report of the Bureau of Consumer Financial 
Protection.
    The Full Committee held a hearing on December 14, 2022 on 
the Semi-Annual Report of the Bureau of Consumer Financial 
Protection.
    The Full Committee held a hearing on April 27, 2022 on the 
Semi-Annual Report of the Bureau of Consumer Financial 
Protection.
    The Committee's Task Force on Financial Technology held a 
hearing on November 2, 2021, titled ``Buy Now, Pay More Later? 
Investigating Risks and Benefits of BNPL and Other Emerging 
Fintech Cash Flow Products.''
    The Full Committee held a hearing on October 27, 2021 on 
the Semi-Annual Report of the Bureau of Consumer Financial 
Protection.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
April 17, 2024, and ordered H.R. 7428 to be reported favorably 
to the House as amended by a recorded vote of 28 ayes to 22 
nays (Record vote no. FC-XX), a quorum being present. Before 
the question was called to order the bill favorably reported, 
the Committee adopted an amendment in the nature of a 
substitute offered by Mr. Steil by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the order to report legislation and amendments thereto. H.R. 
7428 was ordered reported favorably to the House as amended by 
a recorded vote of 28 ayes to 22 nays (Record vote no. FC-135), 
a quorum being present.
    An amendment offered by Mr. Green, no. 8, was not agreed to 
by a recorded vote of 22 ayes to 28 nays (Record vote no. FC-
134), a quorum being present.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      Committee Oversight Findings

    Pursuant to clause 3(c) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee, based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the goal of H.R. 7428 is to clarify 
that earned wages provided to consumers through EWA products 
are not considered credit, and any fees, tips, or donations 
paid by a consumer to an EWA provider are not considered 
finance charges.

                 Congressional Budget Office Estimates

    The Committee has requested but not received a cost 
estimate from the Director of the Congressional Budget Office. 
However, pursuant to clause 3(d)(1) of House rule XIII, the 
Committee will adopt as its own the cost estimate by the 
Director of the Congressional Budget Office once it has been 
prepared.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    The Committee has requested but not received an estimate 
from the Director of the Congressional Budget Office. However, 
pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, once an estimate has been prepared by 
the Director of the Congressional Budget Office, as required by 
section 402 of the Congressional Budget Act of 1973, the 
Committee will adopt as its own the estimate of new budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                       Federal Mandates Statement

    The Committee has requested but not received from the 
Director of the Congressional Budget Office an estimate of the 
Federal mandates pursuant to section 423 of the Unfunded 
Mandates Reform Act. The Committee will adopt the estimate once 
it has been prepared by the Director.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
Federal program, including any program that was included in a 
report to Congress pursuant to section 21 of the Public Law 
111-139 or the most recent Catalog of Federal Domestic 
Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 7428 as the ``Earned Wage Consumer 
Protection Act.''

Section 2. Earned Wage Access services

    This section sets forth the requirements for EWA providers. 
Specifically, section 2 requires EWA providers to include a no-
cost option for their services and provide robust disclosures. 
The disclosures must be provided prior to entering any 
agreement with a consumer and prior to the approval of each 
request. Additional disclosures are required regarding the 
policies on voluntary payments as well as any changes to terms 
and conditions. Section 2 also requires EWA providers to 
establish a dispute resolution process. This section provides 
the CFPB with the authority to issue rules, as the CFPB deems 
appropriate to carry out this section.
    Section 2 provides definitions for the following terms: 
``earned wages,'' ``earned wage access services,'' ``earned 
wage access provider,'' ``payroll service vendor,'' and 
``voluntary payment.''
    Lastly, Section 2 clarifies that voluntary payments and any 
fees paid by a consumer to an earned wage access provider may 
not be construed to be a ``finance charge'' as such term is 
defined in the Truth in Lending Act (TILA).

Section 3. Conforming amendments

    Section 3 specifies that earned wage access services and 
providers are not consumer credit products or creditors for 
purposes of regulation under TILA.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                          TRUTH IN LENDING ACT



           *       *       *       *       *       *       *
TITLE I--CONSUMER CREDIT COST DISCLOSURE

           *       *       *       *       *       *       *


CHAPTER 1--GENERAL PROVISIONS

           *       *       *       *       *       *       *


Sec. 103. Definitions and rules of construction

  (a) The definitions and rules of construction set forth in 
this section are applicable for the purposes of this title.
  (b) Bureau.--The term ``Bureau'' means the Bureau of Consumer 
Financial Protection.
  (c) The term ``Bureau'' refers to the Bureau of Governors of 
the Federal Reserve System.
  (d) The term ``organization'' means a corporation, government 
or governmental subdivision or agency, trust, estate, 
partnership, cooperative, or association.
  (e) The term ``person'' means a natural person or an 
organization.
  (f) The term ``credit'' means the right granted by a creditor 
to a debtor to defer payment of debt or to incur debt and 
[defer its payment] defer its payment, but does not include 
earned wage access services as defined in the Earned Wage 
Access Consumer Protection Act.
  (g) The term ``creditor'' refers only to a person who both 
(1) regularly extends, whether in connection with loans, sales 
of property or services, or otherwise, consumer credit which is 
payable by agreement in more than four installments or for 
which the payment of a finance charge is or may be required, 
and (2) is the person to whom the debt arising from the 
consumer credit transaction is initially payable on the face of 
the evidence of indebtedness or, if there is no such evidence 
of indebtedness, by agreement. Notwithstanding the preceding 
sentence, in the case of an open-end credit plan involving a 
credit card, the card issuer and any person who honors the 
credit card and offers a discount which is a finance charge are 
creditors. For the purpose of the requirements imposed under 
chapter 4 and sections 127(a)(5), 127(a)(6), 127(a)(7), 
127(b)(1), 127(b)(2), 127(b)(3), 127(b)(8), and 127(b)(10) of 
chapter 2 of this title, the term ``creditor'' shall also 
include card issuers whether or not the amount due is payable 
by agreement in more than four installments or the payment of a 
finance charge is or may be required, and the Bureau shall, by 
regulation, apply these requirements to such card issuers, to 
the extent appropriate, even though the requirements are by 
their terms applicable only to creditors offering open-end 
credit plans. Any person who originates 2 or more mortgages 
referred to in subsection (aa) in any 12-month period or any 
person who originates 1 or more such mortgages through a 
mortgage broker shall be considered to be a creditor for 
purposes of this title. The term ``creditor'' includes a 
private educational lender (as that term is defined in section 
140) for purposes of this title. The term creditor does not 
include earned wage access providers as such term is defined in 
the Earned Wage Access Consumer Protection Act.
  (h) The term ``credit sale'' refers to any sale in which the 
seller is a creditor. The term includes any contract in the 
form of a bailment or lease if the bailee or lessee contracts 
to pay as compensation for use a sum substantially equivalent 
to or in excess of the aggregate value of the property and 
services involved and it is agreed that the bailee or lessee 
will become, or for no other or a nominal consideration has the 
option to become, the owner of the property upon full 
compliance with his obligations under the contract.
  (i) The adjective ``consumer'', used with reference to a 
credit transaction, characterizes the transaction as one in 
which the party to whom credit is offered or extended is a 
natural person, and the money, property, or services which are 
the subject of the transaction are primarily for personal, 
family, or household purposes.
  (j) The terms ``open end credit plan'' and ``open end 
consumer credit plan'' mean a plan under which the creditor 
reasonably contemplates repeated transactions, which prescribes 
the terms of such transactions, and which provides for a 
finance charge which may be computed from time to time on the 
outstanding unpaid balance. A credit plan or open end consumer 
credit plan which is an open end credit plan or open end 
consumer credit plan within the meaning of the preceding 
sentence is an open end credit plan or open end consumer credit 
plan even if credit information is verified from time to time.
  (k) The term ``adequate notice'', as used in section 133, 
means a printed notice to a cardholder which sets forth the 
pertinent facts clearly and conspicuously so that a person 
against whom it is to operate could reasonably be expected to 
have noticed it and understood its meaning. Such notice may be 
given to a cardholder by printing the notice on any credit 
card, or on each periodic statement of account, issued to the 
cardholder, or by any other means reasonably assuring the 
receipt thereof by the cardholder.
  (l) The term ``credit card'' means any card, plate, coupon 
book or other credit device existing for the purpose of 
obtaining money, property, labor, or services on credit.
  (m) The term ``accepted credit card'' means any credit card 
which the cardholder has requested and received or has signed 
or has used, or authorized another to use, for the purpose of 
obtaining money, property, labor, or services on credit.
  (n) The term ``cardholder'' means any person to whom a credit 
card is issued or any person who has agreed with the card 
issuer to pay obligations arising from the issuance of a credit 
card to another person.
  (o) The term ``card issuer'' means any person who issues a 
credit card, or the agent of such person with respect to such 
card.
  (p) The term ``unauthorized use'', as used in section 133, 
means a use of a credit card by a person other than the 
cardholder who does not have actual, implied, or apparent 
authority for such use and from which the cardholder receives 
no benefit.
  (q) The term ``discount'' as used in section 167 means a 
reduction made from the regular price. The term ``discount'' as 
used in section 167 shall not mean a surcharge.
  (r) The term ``surcharge'' as used in section 103 and section 
167 means any means of increasing the regular price to a 
cardholder which is not imposed upon customers paying by cash, 
check, or similar means.
  (s) The term ``State'' refers to any State, the Commonwealth 
of Puerto Rico, the District of Columbia, and any territory or 
possession of the United States.
  (t) The term ``agricultural purposes'' includes the 
production, harvest, exhibition, marketing, transportation, 
processing, or manufacture of agricultural products by a 
natural person who cultivates, plants, propagates, or nurtures 
those agricultural products, including but not limited to the 
acquisition of farmland, real property with a farm residence, 
and personal property and services used primarily in farming.
  (u) The term ``agricultural products'' includes agricultural, 
horticultural, viticultural, and dairy products, livestock, 
wildlife, poultry, bees, forest products, fish and shellfish, 
and any products thereof, including processed and manufactured 
products, and any and all products raised or produced on farms 
and any processed or manufactured products thereof.
  (v) The term ``material disclosures'' means the disclosure, 
as required by this title, of the annual percentage rate, the 
method of determining the finance charge and the balance upon 
which a finance charge will be imposed, the amount of the 
finance charge, the amount to be financed, the total of 
payments, the number and amount of payments, the due dates or 
periods of payments scheduled to repay the indebtedness, and 
the disclosures required by section 129(a).
  (w) The term ``dwelling'' means a residential structure or 
mobile home which contains one to four family housing units, or 
individual units of condominiums or cooperatives.
  (x) The term ``residential mortgage transaction'' means a 
transaction in which a mortgage, deed of trust, purchase money 
security interest arising under an installment sales contract, 
or equivalent consensual security interest is created or 
retained against the consumer's dwelling to finance the 
acquisition or initial construction of such dwelling.
  (y) As used in this section and section 167, the term 
``regular price'' means the tag or posted price charged for the 
property or service if a single price is tagged or posted, or 
the price charged for the property or service when payment is 
made by use of an open-end credit plan or a credit card if 
either (1) no price is tagged or posted, or (2) two prices are 
tagged or posted, one of which is charged when payment is made 
by use of an open-end credit plan or a credit card and the 
other when payment is made by use of cash, check, or similar 
means. For purposes of this definition, payment by check, 
draft, or other negotiable instrument which may result in the 
debiting of an open-end credit plan or a credit cardholder's 
open-end account shall not be considered payment made by use of 
the plan or the account.
  (z) Any reference to any requirement imposed under this title 
or any provision thereof includes reference to the regulations 
of the Bureau under this title or the provision thereof in 
question.
  (aa) The disclosure of an amount or percentage which is 
greater than the amount or percentage required to be disclosed 
under this title does not in itself constitute a violation of 
this title.
  (bb) High-cost Mortgage.--
          (1) Definition.--
                  (A) In general.--The term ``high-cost 
                mortgage'', and a mortgage referred to in this 
                subsection, means a consumer credit transaction 
                that is secured by the consumer's principal 
                dwelling, other than a reverse mortgage 
                transaction, if--
                          (i) in the case of a credit 
                        transaction secured--
                                  (I) by a first mortgage on 
                                the consumer's principal 
                                dwelling, the annual percentage 
                                rate at consummation of the 
                                transaction will exceed by more 
                                than 6.5 percentage points (8.5 
                                percentage points, if the 
                                dwelling is personal property 
                                and the transaction is for less 
                                than $50,000) the average prime 
                                offer rate, as defined in 
                                section 129C(b)(2)(B), for a 
                                comparable transaction; or
                                  (II) by a subordinate or 
                                junior mortgage on the 
                                consumer's principal dwelling, 
                                the annual percentage rate at 
                                consummation of the transaction 
                                will exceed by more than 8.5 
                                percentage points the average 
                                prime offer rate, as defined in 
                                section 129C(b)(2)(B), for a 
                                comparable transaction;
                          (ii) the total points and fees 
                        payable in connection with the 
                        transaction, other than bona fide third 
                        party charges not retained by the 
                        mortgage originator, creditor, or an 
                        affiliate of the creditor or mortgage 
                        originator, exceed--
                                  (I) in the case of a 
                                transaction for $20,000 or 
                                more, 5 percent of the total 
                                transaction amount; or
                                  (II) in the case of a 
                                transaction for less than 
                                $20,000, the lesser of 8 
                                percent of the total 
                                transaction amount or $1,000 
                                (or such other dollar amount as 
                                the Bureau shall prescribe by 
                                regulation); or
                          (iii) the credit transaction 
                        documents permit the creditor to charge 
                        or collect prepayment fees or penalties 
                        more than 36 months after the 
                        transaction closing or such fees or 
                        penalties exceed, in the aggregate, 
                        more than 2 percent of the amount 
                        prepaid.
                  (B) Introductory rates taken into account.--
                For purposes of subparagraph (A)(i), the annual 
                percentage rate of interest shall be determined 
                based on the following interest rate:
                          (i) In the case of a fixed-rate 
                        transaction in which the annual 
                        percentage rate will not vary during 
                        the term of the loan, the interest rate 
                        in effect on the date of consummation 
                        of the transaction.
                          (ii) In the case of a transaction in 
                        which the rate of interest varies 
                        solely in accordance with an index, the 
                        interest rate determined by adding the 
                        index rate in effect on the date of 
                        consummation of the transaction to the 
                        maximum margin permitted at any time 
                        during the loan agreement.
                          (iii) In the case of any other 
                        transaction in which the rate may vary 
                        at any time during the term of the loan 
                        for any reason, the interest charged on 
                        the transaction at the maximum rate 
                        that may be charged during the term of 
                        the loan.
                  (C) Mortgage insurance.--For the purposes of 
                computing the total points and fees under 
                paragraph (4), the total points and fees shall 
                exclude--
                          (i) any premium provided by an agency 
                        of the Federal Government or an agency 
                        of a State;
                          (ii) any amount that is not in excess 
                        of the amount payable under policies in 
                        effect at the time of origination under 
                        section 203(c)(2)(A) of the National 
                        Housing Act (12 U.S.C. 1709(c)(2)(A)), 
                        provided that the premium, charge, or 
                        fee is required to be refundable on a 
                        pro-rated basis and the refund is 
                        automatically issued upon notification 
                        of the satisfaction of the underlying 
                        mortgage loan; and
                          (iii) any premium paid by the 
                        consumer after closing.
  (2)(A) After the 2-year period beginning on the effective 
date of the regulations promulgated under section 155 of the 
Riegle Community Development and Regulatory Improvement Act of 
1994, and no more frequently than biennially after the first 
increase or decrease under this subparagraph, the Bureau may by 
regulation increase or decrease the number of percentage points 
specified in paragraph (1)(A), if the Bureau determines that 
the increase or decrease is--
          (i) consistent with the consumer protections against 
        abusive lending provided by the amendments made by 
        subtitle B of title I of the Riegle Community 
        Development and Regulatory Improvement Act of 1994; and
          (ii) warranted by the need for credit.
          (B) An increase or decrease under subparagraph (A)--
                  (i) may not result in the number of 
                percentage points referred to in paragraph 
                (1)(A)(i)(I) being less than 6 percentage 
                points or greater than 10 percentage points; 
                and
                  (ii) may not result in the number of 
                percentage points referred to in paragraph 
                (1)(A)(i)(II) being less than 8 percentage 
                points or greater than 12 percentage points.
  (C) In determining whether to increase or decrease the number 
of percentage points referred to in subparagraph (A), the 
Bureau shall consult with representatives of consumers, 
including low-income consumers, and lenders.
  (3) The amount specified in paragraph (1)(B)(ii) shall be 
adjusted annually on January 1 by the annual percentage change 
in the Consumer Price Index, as reported on June 1 of the year 
preceding such adjustment.
  (4) For purposes of paragraph (1)(B), points and fees shall 
include--
          (A) all items included in the finance charge, except 
        interest or the time-price differential;
          (B) all compensation paid directly or indirectly by a 
        consumer or creditor to a mortgage originator from any 
        source, including a mortgage originator that is also 
        the creditor in a table-funded transaction;
          (C) each of the charges listed in section 106(e) 
        (except an escrow for future payment of taxes), 
        unless--
                  (i) the charge is reasonable;
                  (ii) the creditor receives no direct or 
                indirect compensation; and
                  (iii) the charge is paid to a third party 
                unaffiliated with the creditor; and
          (D) premiums or other charges payable at or before 
        closing for any credit life, credit disability, credit 
        unemployment, or credit property insurance, or any 
        other accident, loss-of-income, life or health 
        insurance, or any payments directly or indirectly for 
        any debt cancellation or suspension agreement or 
        contract, except that insurance premiums or debt 
        cancellation or suspension fees calculated and paid in 
        full on a monthly basis shall not be considered 
        financed by the creditor;
          (E) the maximum prepayment fees and penalties which 
        may be charged or collected under the terms of the 
        credit transaction;
          (F) all prepayment fees or penalties that are 
        incurred by the consumer if the loan refinances a 
        previous loan made or currently held by the same 
        creditor or an affiliate of the creditor; and
          (G) such other charges as the Bureau determines to be 
        appropriate.
          (5) Calculation of points and fees for open-end 
        consumer credit plans.--In the case of open-end 
        consumer credit plans, points and fees shall be 
        calculated, for purposes of this section and section 
        129, by adding the total points and fees known at or 
        before closing, including the maximum prepayment 
        penalties which may be charged or collected under the 
        terms of the credit transaction, plus the minimum 
        additional fees the consumer would be required to pay 
        to draw down an amount equal to the total credit line.
  (6) This subsection shall not be construed to limit the rate 
of interest or the finance charge that a person may charge a 
consumer for any extension of credit.
  (cc) The term ``reverse mortgage transaction'' means a 
nonrecourse transaction in which a mortgage, deed of trust, or 
equivalent consensual security interest is created against the 
consumer's principal dwelling--
          (1) securing one or more advances; and
          (2) with respect to which the payment of any 
        principal, interest, and shared appreciation or equity 
        is due and payable (other than in the case of default) 
        only after--
                  (A) the transfer of the dwelling;
                  (B) the consumer ceases to occupy the 
                dwelling as a principal dwelling; or
                  (C) the death of the consumer.
  (dd) Definitions Relating to Mortgage Origination and 
Residential Mortgage Loans.--
          (1) Commission.--Unless otherwise specified, the term 
        ``Commission'' means the Federal Trade Commission.
          (2) Mortgage originator.--The term ``mortgage 
        originator''--
                  (A) means any person who, for direct or 
                indirect compensation or gain, or in the 
                expectation of direct or indirect compensation 
                or gain--
                          (i) takes a residential mortgage loan 
                        application;
                          (ii) assists a consumer in obtaining 
                        or applying to obtain a residential 
                        mortgage loan; or
                          (iii) offers or negotiates terms of a 
                        residential mortgage loan;
                  (B) includes any person who represents to the 
                public, through advertising or other means of 
                communicating or providing information 
                (including the use of business cards, 
                stationery, brochures, signs, rate lists, or 
                other promotional items), that such person can 
                or will provide any of the services or perform 
                any of the activities described in subparagraph 
                (A);
                  (C) does not include any person who is--
                          (i) not otherwise described in 
                        subparagraph (A) or (B) and who 
                        performs purely administrative or 
                        clerical tasks on behalf of a person 
                        who is described in any such 
                        subparagraph; or
                          (ii) a retailer of manufactured or 
                        modular homes or an employee of the 
                        retailer if the retailer or employee, 
                        as applicable--
                                  (I) does not receive 
                                compensation or gain for 
                                engaging in activities 
                                described in subparagraph (A) 
                                that is in excess of any 
                                compensation or gain received 
                                in a comparable cash 
                                transaction;
                                  (II) discloses to the 
                                consumer--
                                          (aa) in writing any 
                                        corporate affiliation 
                                        with any creditor; and
                                          (bb) if the retailer 
                                        has a corporate 
                                        affiliation with any 
                                        creditor, at least 1 
                                        unaffiliated creditor; 
                                        and
                                  (III) does not directly 
                                negotiate with the consumer or 
                                lender on loan terms (including 
                                rates, fees, and other costs).
                  (D) does not include a person or entity that 
                only performs real estate brokerage activities 
                and is licensed or registered in accordance 
                with applicable State law, unless such person 
                or entity is compensated by a lender, a 
                mortgage broker, or other mortgage originator 
                or by any agent of such lender, mortgage 
                broker, or other mortgage originator;
                  (E) does not include, with respect to a 
                residential mortgage loan, a person, estate, or 
                trust that provides mortgage financing for the 
                sale of 3 properties in any 12-month period to 
                purchasers of such properties, each of which is 
                owned by such person, estate, or trust and 
                serves as security for the loan, provided that 
                such loan--
                          (i) is not made by a person, estate, 
                        or trust that has constructed, or acted 
                        as a contractor for the construction 
                        of, a residence on the property in the 
                        ordinary course of business of such 
                        person, estate, or trust;
                          (ii) is fully amortizing;
                          (iii) is with respect to a sale for 
                        which the seller determines in good 
                        faith and documents that the buyer has 
                        a reasonable ability to repay the loan;
                          (iv) has a fixed rate or an 
                        adjustable rate that is adjustable 
                        after 5 or more years, subject to 
                        reasonable annual and lifetime 
                        limitations on interest rate increases; 
                        and
                          (v) meets any other criteria the 
                        Bureau may prescribe;
                  (F) does not include the creditor (except the 
                creditor in a table-funded transaction) under 
                paragraph (1), (2), or (4) of section 129B(c); 
                and
                  (G) does not include a servicer or servicer 
                employees, agents and contractors, including 
                but not limited to those who offer or negotiate 
                terms of a residential mortgage loan for 
                purposes of renegotiating, modifying, replacing 
                and subordinating principal of existing 
                mortgages where borrowers are behind in their 
                payments, in default or have a reasonable 
                likelihood of being in default or falling 
                behind.
          (3) Nationwide mortgage licensing system and 
        registry.--The term ``Nationwide Mortgage Licensing 
        System and Registry'' has the same meaning as in the 
        Secure and Fair Enforcement for Mortgage Licensing Act 
        of 2008.
          (4) Other definitions relating to mortgage 
        originator.--For purposes of this subsection, a person 
        ``assists a consumer in obtaining or applying to obtain 
        a residential mortgage loan'' by, among other things, 
        advising on residential mortgage loan terms (including 
        rates, fees, and other costs), preparing residential 
        mortgage loan packages, or collecting information on 
        behalf of the consumer with regard to a residential 
        mortgage loan.
          (5) Residential mortgage loan.--The term 
        ``residential mortgage loan'' means any consumer credit 
        transaction that is secured by a mortgage, deed of 
        trust, or other equivalent consensual security interest 
        on a dwelling or on residential real property that 
        includes a dwelling, other than a consumer credit 
        transaction under an open end credit plan or, for 
        purposes of sections 129B and 129C and section 128(a) 
        (16), (17), (18), and (19), and sections 128(f) and 
        130(k), and any regulations promulgated thereunder, an 
        extension of credit relating to a plan described in 
        section 101(53D) of title 11, United States Code.
          (6) Secretary.--The term ``Secretary'', when used in 
        connection with any transaction or person involved with 
        a residential mortgage loan, means the Secretary of 
        Housing and Urban Development.
          (7) Servicer.--The term ``servicer'' has the same 
        meaning as in section 6(i)(2) of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 
        2605(i)(2)).
  (ee) Bona Fide Discount Points and Prepayment Penalties.--For 
the purposes of determining the amount of points and fees for 
purposes of subsection (aa), either the amounts described in 
paragraph (1) or (2) of the following paragraphs, but not both, 
shall be excluded:
          (1) Up to and including 2 bona fide discount points 
        payable by the consumer in connection with the 
        mortgage, but only if the interest rate from which the 
        mortgage's interest rate will be discounted does not 
        exceed by more than 1 percentage point--
                  (A) the average prime offer rate, as defined 
                in section 129C; or
                  (B) if secured by a personal property loan, 
                the average rate on a loan in connection with 
                which insurance is provided under title I of 
                the National Housing Act (12 U.S.C. 1702 et 
                seq.).
          (2) Unless 2 bona fide discount points have been 
        excluded under paragraph (1), up to and including 1 
        bona fide discount point payable by the consumer in 
        connection with the mortgage, but only if the interest 
        rate from which the mortgage's interest rate will be 
        discounted does not exceed by more than 2 percentage 
        points--
                  (A) the average prime offer rate, as defined 
                in section 129C; or
                  (B) if secured by a personal property loan, 
                the average rate on a loan in connection with 
                which insurance is provided under title I of 
                the National Housing Act (12 U.S.C. 1702 et 
                seq.).
          (3) For purposes of paragraph (1), the term ``bona 
        fide discount points'' means loan discount points which 
        are knowingly paid by the consumer for the purpose of 
        reducing, and which in fact result in a bona fide 
        reduction of, the interest rate or time-price 
        differential applicable to the mortgage.
          (4) Paragraphs (1) and (2) shall not apply to 
        discount points used to purchase an interest rate 
        reduction unless the amount of the interest rate 
        reduction purchased is reasonably consistent with 
        established industry norms and practices for secondary 
        mortgage market transactions.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    If enacted, H.R. 7428 would create a major loophole in our 
consumer financial protection laws, allowing predatory payday 
loan-like products to proliferate. This legislation would 
create a new legal framework for earned wage access (EWA) 
products and formally exempt them from existing Truth in 
Lending Act (TILA) disclosure requirements that currently apply 
to credit products. EWA products offer individuals access to a 
portion of their earned income, prior to being issued their 
paycheck at the end of the standard pay period. For example, if 
a consumer worked four days out of their two-week pay period, 
they could be advanced an amount that reflects their prorated 
income for the four days they have worked. EWA companies 
generally argue that they should not be subject to laws like 
TILA governing the extension of credit because they are 
advancing wages that the consumer has already earned on a non-
recourse basis.\1\ Consumer advocates disagree and have raised 
concerns about broadly exempting all forms of EWA from credit 
laws, like TILA and state interest rate caps, arguing that 
among other things, given the various fees and so-called 
voluntary tips EWA collect, and the frequent and repeated use 
of these products, this can lead to harmful debt traps for 
consumers. Furthermore, consumer advocates express concerns 
that this legislation could inspire payday loan-like products 
to adopt similar models under the bill's light-touch 
regulations.\2\
---------------------------------------------------------------------------
    \1\See, e.g., American Fintech Council, AFC Expresses Serious 
Concerns With Connecticut's Recent Guidance Related to Earned Wage 
Access (EWA), Sept. 19, 2023.
    \2\See, e.g., National Consumer Law Center, Earned Wage Advances 
and Other Fintech Payday Loans: Workers Shouldn't Pay to be Paid (Apr. 
20, 2023).
---------------------------------------------------------------------------
    TILA, which would be rendered inapplicable to all EWA 
products under this bill,\3\ provides important protections for 
consumers. In particular, TILA includes a private right of 
action and requires clear disclosure of the annual percentage 
rate (APR). The CFPB has described ``APR disclosures [and] the 
disclosure of the finance charge [as] central to the uniform 
credit cost disclosure envisioned by the TILA.''\4\ This bill 
does not include any private right of action, and while the 
bill requires disclosure of fees, it does not specify whether 
or not APR would count as a fee. This is concerning because an 
examination by the California Department of Financial 
Protection and Innovation found that ``the average APR across 
nearly six million EWA transactions was just over 330%--close 
to that of payday loans in California.''\5\ Without required 
disclosures on APR, EWA companies would be able to hide 
exorbitant rates. There is no reason companies offering these 
products shouldn't comply with long-standing consumer 
protection and credit laws.
---------------------------------------------------------------------------
    \3\See p. 12 of the ANS.
    \4\CFPB, Laws and Regulations: TILA (Apr. 2015).
    \5\Id.
---------------------------------------------------------------------------
    This bill will preempt guidance from the CFPB, which is 
expected to be published. The CFPB first indicated, in June 
2022, that it would take action on EWA products when it 
rescinded an EWA company's sandbox approval order.\6\ In 
December 2023, when commenting on the California Department of 
Financial Protection and Innovation's action on EWA products, 
CFPB indicated that the agency ``plans to issue further 
guidance'' and that ``the CFPB supports efforts to subject such 
products to rigorous oversight for the full scope of existing 
state and federal consumer protection and lending laws.''\7\ 
This bill not only exempts EWA products from the definition of 
TILA before CFPB has had the chance to act, it also takes away 
an enforceable Federal standard to protect consumers in this 
space. While the bill directs the CFPB to issue rulemaking, it 
does not provide authority for CFPB to take enforcement actions 
or impose penalties if a company were to violate this new law.
---------------------------------------------------------------------------
    \6\CFPB, CFPB Rescinds Special Regulatory Treatment for Payactiv 
(Jun. 30, 2022).
    \7\Seth Frotman, State regulatory developments on ``income-based 
advances'', CFPB (Dec. 1, 2023).
---------------------------------------------------------------------------
    During the markup, Representative Green proposed an 
amendment that would strike the legislation and replace it with 
text requiring the CFPB to issue guidance on how consumer 
financial protection laws apply to EWA products. This amendment 
was rejected by Republicans.
    The following 192 labor, civil rights, consumer, legal 
services, and community groups, and academics oppose H.R. 7428: 
(*--organization listed for identification only).
    National groups: 20/20 Vision, ACLU, AFL-CIO, American 
Economic Liberties Project, American Federation of Teachers, 
American Friends Service Committee, Americans for Financial 
Reform, Appleseed Foundation, Center for Responsible Lending, 
Center for WorkLife Law, Coalition of Labor Union Women, 
Coalition on Human Needs, Consumer Action, Consumer Federation 
of America, Consumer Reports, Consumers for Auto Reliability 
and Safety, Equal Rights Advocates, Impact Fund, Japanese 
American Citizens League (JACL), The Leadership Conference on 
Civil and Human Rights, MomsRising, NAACP, National Association 
for Latino Community Asset Builders, National Association of 
Consumer Advocates, National Center for Law and Economic 
Justice, National Coalition for Asian Pacific American 
Community Development (National CAPACD), National Coalition for 
the Homeless, National Community Action Partnership, National 
Consumer Law Center (on behalf of its low-income clients), 
National Consumers League, National Disability Rights Network 
(NDRN), National Education Association, National Employment Law 
Project, National Employment Lawyers Association, National 
Institute for Workers' Rights, National Partnership for Women & 
Families, National Urban League, National Women's Law Center, 
NETWORK Lobby for Catholic Social Justice, Prosperity Now, 
Public Citizen, Public Counsel, Public Good Law Center, Public 
Justice, Restaurant Opportunities Centers United, Service 
Employees International Union (SEIU), Sugar Law Center for 
Economic and Social Justice, U.S. PIRG, UnidosUS, Workplace 
Fairness, Young Invincibles
    Alaska: AKPIRG
    Arizona: Center for Economic Integrity, Society of St. 
Vincent de Paul, Tucson Diocesan Council, UFCW Local 99, 
William E. Morris Institute for Justice
    California: California Low-Income Consumer Coalition 
(CLICC), CAMEO--California Association for Micro Enterprise 
Opportunity, Consumer Federation of California, Legal 
Assistance for Seniors, Lift to Rise, Long Beach Alliance for 
Clean Energy, Mission Asset Fund, Office of Kat Taylor, Prof. 
Alysson Snow (University of San Diego School of Law, Housing 
Rights Legal Clinic),* Prof. Scott Maurer, Katharine & George 
Alexander Community Law Center,* Prof. Steven M. Graves, 
California State University, Northridge,* Public Law Center, 
Rise Economy (formerly California Reinvestment Coalition)
    Colorado: Bell Policy Center, CoPIRG, The One Less 
Foundation, Towards Justice
    Connecticut: Connecticut Legal Services, Inc., Prof. Annie 
Harper (Yale School of Medicine Department of Psychiatry)*
    Delaware: Delaware Community Reinvestment Action Council, 
Inc.
    District of Columbia: Prof. Emeritus Arthur E. Wilmarth, 
Jr., George Washington University Law School,* DC Consumer 
Rights Coalition, Tzedek DC
    Florida: Florida Consumer Action Network, Jacksonville Area 
Legal Aid, Inc.
    Georgia: Georgia Watch, Sur Legal Collaborative, Prof. 
Emeritus Mark Budnitz, Georgia State University College of 
Law,* Neighborhood Improvement Association
    Illinois: Shriver Center on Poverty Law, Prof. Lea 
Krivinskas Shepard, Loyola University Chicago School of Law,* 
Prof. Thomas L. Eovaldi, Northwestern Pritzger School of Law*
    Indiana: Indiana Community Action Poverty Institute, 
Prosperity Indiana
    Kentucky: Kentucky Equal Justice Center
    Louisiana: New Hope Collaborative
    Maine: Maine People's Alliance, Maine Small Business 
Coalition
    Maryland: 1199SEIU MD/DC, CASH Campaign of Maryland, 
Economic Action Maryland, Public Justice Center, Prof. Jeff 
Sovern, University of Maryland Francis King Carey School of 
Law* (signed only in individual capacity; affiliation provided 
only for purposes of identification), Prof. Jodi Frey, 
University of Maryland, School of Social Work*
    Massachusetts: Sciencecorps, Lawrence CommunityWorks, Inc. 
The Neighborhood Developers
    Minnesota: Minnesotans for Fair Lending, Phyllis Wheatley 
Community Center, Prof. Prentiss Cox, University of Minnesota 
Law School*
    Nebraska: Nebraska Appleseed
    Nevada: UNITE HERE Culinary Workers Union, Local 226, Legal 
Aid Center of Southern Nevada, Nevada Coalition of Legal 
Service Providers, Nevada Legal Services, Inc., Progressive 
Leadership Alliance of Nevada
    New Jersey: BlueWaveNJ, Legal Services of New Jersey, New 
Jersey Appleseed Public Interest Law Center, New Jersey Citizen 
Action, NJ Time to Care Coalition, Communities First 
Initiative, CWA Local 1081
    New Mexico: KWH Law Center for Social Justice and Change, 
Prof. Nathalie Martin, University of New Mexico School of Law*
    New York: Center for Elder Law & Justice, Cypress Hills 
Local Development Corp., Empire Justice Center, Eno Awotoye, 
Retail Action Project, Genesee Co-op Federal Credit Union, Long 
Island Housing Services, Inc., Lower East Side People's FCU, 
Mobilization for Justice, New Economy Project, New York Public 
Interest Research Group (NYPIRG), New York StateWide Senior 
Action Council, New Yorkers for Responsible Lending, Prof. Dora 
Galacatos, Fordham Law School Feerick Center for Social 
Justice,* Prof. Edward J. Janger, Brooklyn Law School,* Prof. 
Marianne Artusio, Touro Law Center,* Prof. Norman I. Silber, 
Maurice A. Deane School of Law, Hofstra University,* Prof. 
Susan Block-Lieb, Fordham Law School,* Rural Law Center of New 
York, Strycker's Bay Neighborhood Council, Western New York Law 
Center
    North Carolina: Charlotte Center for Legal Advocacy, The 
Collaborative, NC Coalition for Responsible Lending, North 
Carolina Council of Churches, North Carolina Justice Center, 
Pisgah Legal Services, Rebuilding Broken Places CDC
    Ohio: Advocates for Basic Legal Equality, Cincinnati 
Interfaith Workers Center, Legal Aid Society of Southwest Ohio, 
LLC, Prof. Cathy Lesser Mansfield (Case Western Reserve 
University School of Law)*
    Oklahoma: Voices Organized in Civic Engagement (VOICE)
    Oregon: Oregon Consumer Justice
    Pennsylvania: Community Legal Services of Philadelphia, 
Justice at Work Pennsylvania
    Rhode Island: Economic Progress Institute
    South Carolina: Columbia Consumer Education Council Inc, 
South Carolina Appleseed Legal Justice Center, South Carolina 
Association for Community Economic Development
    Texas: Brazos Valley Affordable Housing Corporation, BV 
Financial Fitness Center, cdcb | come dream. come build., 
Center for Transforming Lives, COPS/Metro Alliance, Dallas Area 
Interfaith, Equal Justice Center, The Houston Area Urban 
League, Prof. Neil L. Sobol, Texas A&M University School of 
Law,* RAISE Texas, Texas Appleseed, The Metropolitan 
Organization (TMO), United Way of Central Texas, United Way of 
Metropolitan Dallas, United Way of Tarrant County, United Ways 
of Texas, Valley interfaith, Zan Wesley Holmes, Jr Community 
Outreach Center
    Utah: Prof. Jacob S. Rugh, Brigham Young University,* Prof. 
Christopher L. Peterson, University of Utah, S.J. Quinney 
College of Law*
    Virginia: Legal Aid Justice Center, Virginia Citizens 
Consumer Council, Virginia Poverty Law Center, Virginia 
Organizing
    Washington: Economic Opportunity Institute, Unemployment 
Law Project, Wenatchee for Immigrant Justice
    West Virginia: WV Citizen Action
    Wisconsin: Wisconsin Indigenous Economic Development 
Corporation
    For these reasons, we oppose H.R. 7423.
            Sincerely,
                                   Maxine Waters,
                                           Ranking Member.
                                   Nydia M. Velazquez,
                                   Brad Sherman,
                                   Stephen F. Lynch,
                                   Al Green,
                                   Emanuel Cleaver, II,
                                   Bill Foster,
                                   Joyce Beatty,
                                   Ayanna Pressley,
                                   Rashida Tlaib,
                                   Sylvia R. Garcia,
                                   Nikema Williams,
                                           Members of Congress.

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