I 

114TH CONGRESS 

1ST SESSION H. R. 4018 

To amend the Truth in Lending Act to establish deferred presentment 

transaction requirements, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 16, 2015 

Mr. ROSS (for himself, Mr. MURPHY of Florida, Mr. CURBELO of Florida, Mr. 

HASTINGS, Ms. BROWN of Florida, and Mr. POSEY) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Truth in Lending Act to establish deferred 

presentment transaction requirements, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Protection 

5 and Choice Act’’. 


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1 SEC. 2. DEFERRED PRESENTMENT TRANSACTION RE2 QUIREMENTS. 

3 (a) IN GENERAL.—Chapter 2 of the Truth in Lend4 ing Act is amended by inserting after section 128A (15 

5 U.S.C. 1638A) the following new section: 

6 ‘‘§ 128B. Deferred presentment transaction require7 ments 

8 ‘‘(a) PROHIBITION ON DEFERRED PRESENTMENT

9 TRANSACTIONS.—A deferred presentment transaction is 

10 prohibited except as authorized by this section. 

11 ‘‘(b) REGULATION OF DEFERRED PRESENTMENT

12 TRANSACTIONS AND DEFERRED PRESENTMENT PRO13 VIDERS.—If the Director of the Bureau determines that 

14 a State has in effect a covered deferred presentment law, 

15 any regulations of the Bureau with respect to deferred 

16 presentment transactions and deferred presentment pro17 viders shall not apply in such State. 

18 ‘‘(c) COVERED DEFERRED PRESENTMENT LAW DE19 FINED.—For purposes of this section, the term ‘covered 

20 deferred presentment law’ means a law or regulation of 

21 a State that provides for the licensing of deferred present22 ment providers and the regulation of deferred presentment 

23 transactions, which may be accomplished through existing 

24 State authority, and that meets the following require25 ments: 


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1 ‘‘(1) DATABASE.—The law or regulation must 

2 establish a database of deferred presentment trans3 actions to assist deferred presentment providers with 

4 complying with the requirements of this section, 

5 which may be operated by a private company se6 lected by the State. 

7 ‘‘(2) DEFERRED PRESENTMENT PROVIDER RE8 QUIREMENTS.—The law or regulation must require 

9 a deferred presentment provider to— 

10 ‘‘(A) be licensed by the State; 

11 ‘‘(B) provide to the State the results of a 

12 background check, including fingerprinting, of 

13 each officer and principal of the deferred pre14 sentment provider; 

15 ‘‘(C) secure a copy of a valid State-issued 

16 form of identification from a consumer before 

17 entering into a deferred presentment trans18 action; 

19 ‘‘(D) verify through the State deferred pre20 sentment transaction database that a consumer 

21 entering into a deferred presentment trans22 action with the deferred presentment provider— 

23 ‘‘(i) does not have an outstanding de24 ferred presentment transaction; and 


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1 ‘‘(ii) did not have an outstanding de2 ferred presentment transaction within the 

3 previous 24-hour period; and 

4 ‘‘(E) report to the State deferred present5 ment transaction database operator imme6 diately— 

7 ‘‘(i) upon entering into a deferred pre8 sentment transaction agreement— 

9 ‘‘(I) the name of the consumer 

10 that provided a check or other pay11 ment instrument for deferred present12 ment; 

13 ‘‘(II) the consumer’s social secu14 rity number or employment authoriza15 tion alien number; 

16 ‘‘(III) the consumer’s address; 

17 ‘‘(IV) the consumer’s driver’s li18 cense number or identifier from other 

19 valid State-issued form of identifica20 tion; 

21 ‘‘(V) the amount of the deferred 

22 presentment transaction; 

23 ‘‘(VI) the date such deferred pre24 sentment transaction is made and the 

25 date on which repayment of the deVerDate Sep 11 2014 04:45 Nov 18, 2015 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4018.IH H4018

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1 ferred presentment transaction is due; 

2 and 

3 ‘‘(VII) such other information as 

4 the State determines appropriate; and 

5 ‘‘(ii) upon repayment by the consumer 

6 of the amount owed under a deferred pre7 sentment transaction agreement or after 

8 such deferred presentment transaction 

9 agreement is otherwise settled, the date 

10 and time on which the amount owed under 

11 such deferred presentment transaction 

12 agreement is satisfied. 

13 ‘‘(3) DEFERRED PRESENTMENT TRANSACTION

14 AGREEMENT REQUIREMENTS.—The law or regula15 tion must require that the terms of a deferred pre16 sentment transaction agreement— 

17 ‘‘(A) limit the total amount of all interest 

18 and fees that may be charged to a consumer by 

19 a deferred presentment provider with respect to 

20 a deferred presentment transaction to no more 

21 than 10 percent of the amount of such a de22 ferred presentment transaction and no more 

23 than a $5 processing fee; 


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1 ‘‘(B) limit the duration of the deferred pre2 sentment transaction to a period no longer than 

3 31 days or less than 7 days; 

4 ‘‘(C) limit the amount of the deferred pre5 sentment transaction to no more than $500, ex6 clusive of allowed fees; 

7 ‘‘(D) be in writing; 

8 ‘‘(E) provide that the consumer shall— 

9 ‘‘(i) have the right to rescind any de10 ferred presentment transaction agreement 

11 within the first 24 hours of the deferment 

12 period; and 

13 ‘‘(ii) pay any allowable processing fee 

14 regardless of such rescission; and 

15 ‘‘(F) include such other information as the 

16 State determines to be appropriate. 

17 ‘‘(4) TREATMENT OF PAST-DUE AMOUNTS.— 

18 The law or regulation must require that if a con19 sumer fails to repay the amount due pursuant to a 

20 deferred presentment transaction agreement by the 

21 contractual repayment date, a deferred presentment 

22 provider shall provide an additional 60-day grace pe23 riod, without any additional charge, for the con24 sumer to repay such amount before the deferred pre25 sentment provider may request payment for the 


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1 check or other payment instrument or pursue other 

2 civil remedies, subject to the conditions that the 

3 grace period will— 

4 ‘‘(A) terminate immediately if, before the 

5 end of the 7-day period beginning on the date 

6 of the contractual repayment date, the con7 sumer failed to make an appointment to attend 

8 a course with a consumer credit counseling 

9 agency and inform the deferred presentment 

10 provider of such appointment; and 

11 ‘‘(B) be deemed to have terminated at the 

12 end of the 7-day period beginning on the date 

13 of the contractual repayment date if, before the 

14 end of the 60-day period beginning on the date 

15 of the contractual repayment date, the con16 sumer failed to complete a course with a con17 sumer credit counseling agency and inform the 

18 deferred presentment provider of the completion 

19 of such course. 

20 ‘‘(d) COMPLIANCE.—A deferred presentment trans21 action that complies with the requirements of this section 

22 and applicable State law shall not be considered to be an 

23 unfair, deceptive, or abusive act or practice. 


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1 ‘‘(e) EFFECTIVE DATE.—The requirements of this 

2 section shall take effect on the date that is 24 months 

3 after the date of the enactment of this section. 

4 ‘‘(f) DEFINITIONS.—For purposes of this section: 

5 ‘‘(1) DEFERMENT PERIOD.—The term 

6 ‘deferment period’ means the number of days a de7 ferred presentment provider agrees to wait before 

8 depositing, presenting, or redeeming a consumer’s 

9 check or other payment instrument under a deferred 

10 presentment transaction agreement. 

11 ‘‘(2) DEFERRED PRESENTMENT PROVIDER.— 

12 The term ‘deferred presentment provider’ means a 

13 person who holds a license to be a deferred present14 ment provider in the State in which a deferred pre15 sentment transaction agreement is entered into and 

16 who provides currency or other payment instrument 

17 to a consumer as part of a deferred presentment 

18 transaction. 

19 ‘‘(3) DEFERRED PRESENTMENT TRANS20 ACTION.—The term ‘deferred presentment trans21 action’ means a transaction in which currency or 

22 other payment instrument is provided to a consumer 

23 in exchange for a consumer’s check or other pay24 ment instrument and an agreement that such con25 sumer’s check or other payment instrument shall be 


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1 held for a deferment period prior to presentment, 

2 deposit, or redemption. 

3 ‘‘(4) DEFERRED PRESENTMENT TRANSACTION

4 AGREEMENT.—The term ‘deferred presentment 

5 transaction agreement’ means the underlying agree6 ment establishing a deferred presentment trans7 action. 

8 ‘‘(5) OTHER PAYMENT INSTRUMENT.—The 

9 term ‘other payment instrument’ means a draft, 

10 warrant, money order, traveler’s check, or electronic 

11 instrument (other than currency). 

12 ‘‘(6) STATE.—The term ‘State’ means each of 

13 the several States, the District of Columbia, and 

14 each territory and possession of the United States. 

15 ‘‘(7) STATE DEFERRED PRESENTMENT TRANS16 ACTION DATABASE.—The term ‘State deferred pre17 sentment transaction database’ means the database 

18 established by the State that issued the consumer’s 

19 form of identification.’’. 

20 (b) CLERICAL AMENDMENT.—The table of contents 

21 at the beginning of chapter 2 of the Truth in Lending 

22 Act is amended by inserting after the item relating to sec23 tion 128A the following new item: 

‘‘128B. Deferred presentment transaction requirements.’’. 


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1 SEC. 3. MORATORIUM AND SAFE HARBOR. 

2 (a) MORATORIUM.—The Bureau of Consumer Finan3 cial Protection may not promulgate or enforce any regula4 tion related to deferred presentment providers with respect 

5 to deferred presentment transactions during the 24-month 

6 period beginning on the date of enactment of this Act. 

7 (b) SAFE HARBOR.—The Bureau of Consumer Fi8 nancial Protection may not impose any additional require9 ments related to deferred presentment providers with re10 spect to deferred presentment transactions in a State if 

11 such State has enacted a covered deferred presentment 

12 law by the effective date in subsection (e) of section 128B 

13 of the Truth in Lending Act, as added by section 2(a). 

14 (c) PAYDAY LOANS.—The Bureau of Consumer Fi15 nancial Protection— 

16 (1) may not regulate payday loans during the 

17 24-month period beginning on the date of enactment 

18 of this Act; and 

19 (2) may regulate payday loans in a State after 

20 such period only if such State has not enacted a cov21 ered deferred presentment law. 

22 (d) DEFINITIONS.—For purposes of this section: 

23 (1) TILA DEFINITIONS.—The terms ‘‘covered 

24 deferred presentment law’’, ‘‘deferred presentment 

25 provider’’, ‘‘deferred presentment transaction’’, and 

26 ‘‘State’’ shall have the meanings given such terms 


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1 under section 128B of the Truth in Lending Act, as 

2 added by section 2(a). 

3 (2) PAYDAY LOAN.—The term ‘‘payday loan’’ 

4 means a loan described under section 1024(a)(1)(E) 

5 of Public Law 111–203 (12 U.S.C. 5514(a)(1)(E)), 

6 except that such term does not include a deferred 

7 presentment transaction. 

Æ 


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