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HR 336 IH
112th CONGRESS
1st Session
H. R. 336
To amend the Truth in Lending Act to protect consumers from usury, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
January 19, 2011
Mr. HINCHEY (for himself, Mr. TIERNEY, Mr. COHEN, Mr. FILNER, Mr. GEORGE MILLER of California, Ms. WOOLSEY, Mr. GRIJALVA, and Mr. JACKSON of Illinois) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To amend the Truth in Lending Act to protect consumers from usury, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
SEC. 2. NATIONAL CONSUMER CREDIT USURY RATE.
Section 107 of the Truth in Lending Act (15 U.S.C. 1606) is amended by adding at the end the following new subsection:
‘(f) National Consumer Credit Usury Rate-
‘(1) LIMITATION ESTABLISHED- Notwithstanding subsection (a) or any other provision of law, but except as provided in paragraph (2), the annual percentage rate applicable to any extension of credit may not exceed 15 percent on unpaid balances, inclusive of all finance charges. Any fees that are not considered finance charges under section 106(a) may not be used to evade the limitations of this paragraph, and the total sum of such fees may not exceed the total amount of finance charges assessed.
‘(2) EXCEPTIONS-
‘(A) BOARD AUTHORITY- The Board may establish, after consultation with the appropriate committees of Congress, the Secretary of the Treasury, and any other interested Federal financial institution regulatory agency, an annual percentage rate of interest ceiling exceeding the 15 percent annual rate under paragraph (1) for periods of not to exceed 18 months, upon a determination that--
‘(i) money market interest rates have risen over the preceding 6-month period; and
‘(ii) prevailing interest rate levels threaten the safety and soundness of individual lenders, as evidenced by adverse trends in liquidity, capital, earnings, and growth.
‘(B) TREATMENT OF CREDIT UNIONS- The limitation in paragraph (1) shall not apply with respect to any extension of credit by an insured credit union, as that term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
‘(3) PENALTIES FOR CHARGING HIGHER RATES-
‘(A) VIOLATION- The taking, receiving, reserving, or charging of an annual percentage rate or fee greater than that permitted by paragraph (1), when knowingly done, shall be deemed a violation of this title, and a forfeiture of the entire interest which the note, bill, or other evidence of the obligation carries with it, or which has been agreed to be paid thereon.
‘(B) REFUND OF INTEREST AMOUNTS- If an annual percentage rate or fee greater than that permitted under paragraph (1) has been paid, the person by whom it has been paid, or the legal representative thereof, may, by bringing an action not later than 2 years after the date on which the usurious collection was last made, recover back from the lender in an action in the nature of an action of debt, the entire amount of interest, finance charges, or fees paid.
‘(4) CIVIL LIABILITY- Any creditor who violates this subsection shall be subject to the provisions of section 130.’.
SEC. 3. CIVIL LIABILITY CONFORMING AMENDMENT.
Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended by inserting ‘section 107(f),’ before ‘this chapter’.
U.S. Congress - Text of H.R.336 as Introduced in House Interest Rate Reduction Act
