II 

113TH CONGRESS 

1ST SESSION S. 187 

To amend the Truth in Lending Act to prohibit the distribution of any 

check or other negotiable instrument as part of a solicitation by a 

creditor for an extension of credit, to limit the liability of consumers 

in conjunction with such solicitations, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 30, 2013 

Mr. MERKLEY (for himself, Mr. BROWN, and Mr. WHITEHOUSE) introduced 

the following bill; which was read twice and referred to the Committee 

on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Truth in Lending Act to prohibit the distribution of any check or other negotiable instrument as part 

of a solicitation by a creditor for an extension of credit, 

to limit the liability of consumers in conjunction with 

such solicitations, 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 ‘‘Deceptive Loan Check 

5 Elimination Act’’. 


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1 SEC. 2. UNSOLICITED LOAN CHECKS PROHIBITED. 

2 (a) IN GENERAL.—Section 132 of the Truth in Lend3 ing Act (15 U.S.C. 1642) is amended— 

4 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

5 ‘‘No credit’’; and 

6 (2) by adding at the end the following: 

7 ‘‘(b) UNSOLICITED LOAN CHECKS PROHIBITED.—No 

8 person may extend any consumer credit which is otherwise 

9 subject to this title through the use by the consumer of 

10 a check, other negotiable instrument, or such other similar 

11 product as the Bureau may, by rule, determine, that the 

12 creditor has sent to the consumer in connection with a 

13 solicitation by the creditor for an extension of consumer 

14 credit, unless the consumer submitted a written applica15 tion for, or otherwise requested in writing, the extension 

16 of credit before the date on which the creditor sent the 

17 check, negotiable instrument, or other similar product. 

18 ‘‘(c) ‘LOOK-ALIKE’ CHECKS.—A certificate, voucher, 

19 or other nonnegotiable instrument provided to a consumer 

20 in connection with a solicitation for an extension of credit 

21 that has the appearance of a check or other negotiable 

22 instrument is not an application or request for an exten23 sion of credit for purposes of this section. 

24 ‘‘(d) LIABILITY OF CONSUMER.— 

25 ‘‘(1) LIABILITY OF CONSUMER.—A consumer 

26 shall not be liable for— 


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1 ‘‘(A) the principal amount of a check or 

2 other negotiable instrument sent to the con3 sumer in violation of this section; or 

4 ‘‘(B) any interest, fee, or penalty charged 

5 in connection with such check or negotiable in6 strument. 

7 ‘‘(2) INFORMATION ON CONSUMER.—No infor8 mation relating to the liability of a consumer alleged 

9 by a creditor to have been established through a 

10 check or other negotiable instrument sent by a cred11 itor to the consumer in violation of subsection (b) 

12 may be reported to or received by any consumer re13 porting agency or included in any consumer report 

14 (as those terms are defined in section 603 of the 

15 Fair Credit Reporting Act (15 U.S.C. 1681a)). 

16 ‘‘(e) REGULATIONS.—Not later than 6 months after 

17 the date of enactment of the Deceptive Loan Check Elimi18 nation Act, the Bureau shall prescribe final regulations 

19 to implement this section.’’. 

20 (b) CLERICAL AMENDMENT.—The item relating to 

21 section 132 in the table of sections for chapter 2 of the 

22 Consumer Credit Protection Act is amended to read as 

23 follows: 

‘‘132. Issuance of credit cards and unsolicited loan checks.’’. 

24 (c) SCOPE OF APPLICATION.—The requirements of 

25 this Act and the amendments made by this Act shall apply 


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1 to solicitations for extensions of credit made to consumers 

2 after the date of enactment of this Act. 

Æ 


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