I 

116TH CONGRESS 

2D SESSION H. R. 8857 

To establish a Consumer Protection Relief Fund to empower lenders to 

deploy credit to vulnerable borrowers needing access to credit as a result 

of the COVID–19 pandemic. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 3, 2020 

Mr. LYNCH introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To establish a Consumer Protection Relief Fund to empower 

lenders to deploy credit to vulnerable borrowers needing 

access to credit as a result of the COVID–19 pandemic. 

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 Relief Fund Act’’ or the ‘‘CPR Fund Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ADMINISTRATOR.—The term ‘‘Adminis9 trator’’ means the Administrator of the CDFI Fund. 


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1 (2) CDFI FUND.—The term ‘‘CDFI Fund’’ 

2 means the Community Development Financial Insti3 tutions Fund. 

4 (3) CLOSED-END INSTALLMENT LOAN.—The 

5 term ‘‘closed-end installment loan’’— 

6 (A) means a loan— 

7 (i) extended at a set amount; and 

8 (ii) repaid by the borrower with a 

9 fixed amount over a limited number of 

10 payment periods; and 

11 (B) does not include a student, auto, or 

12 mortgage loan. 

13 (4) FUND.—The term ‘‘Fund’’ means the Con14 sumer Protection Relief Fund established under sec15 tion 3. 

16 (5) COVERED AMOUNT.— 

17 (A) IN GENERAL.—With respect to a quali18 fied loan, the term ‘‘covered amount’’ means— 

19 (i) 95 percent of the outstanding prin20 cipal balance and accrued interest on the 

21 loan (not including any late payment or 

22 other fees charged to the loan), minus 

23 (ii) any previously charged fees above 

24 36 percent of the annual percentage rate. 


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1 (B) CALCULATION OF APR.—For purposes 

2 of subparagraph (A), the annual percentage 

3 rate shall be calculated using the method pro4 vided under section 232.4(c) of title 32, Code of 

5 Federal Regulations, for the calculation of the 

6 military annual percentage rate. 

7 (6) QUALIFIED LOAN.—The term ‘‘qualified 

8 loan’’ means an extension of a closed-end installment 

9 loan— 

10 (A) to a vulnerable borrower; 

11 (B) with respect to which the borrower has 

12 made an attestation to the holder of the loan 

13 that the borrower is experiencing financial dif14 ficulty in repaying the loan due to the impact 

15 of COVID–19; and 

16 (C) under which the loan terms— 

17 (i) do not contain negative amortiza18 tion, interest-only payments, or balloon 

19 payments; 

20 (ii) do not provide for an automatic 

21 renewal; and 

22 (iii) do not contain a prepayment pen23 alty. 

24 (7) VULNERABLE BORROWER.—The term ‘‘vul25 nerable borrower’’ means a consumer who— 


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1 (A) has an income that is 80 percent or 

2 less of the median income for the area in which 

3 the consumer lives; 

4 (B) has— 

5 (i) a FICO score under 675; 

6 (ii) an adjusted gross income of— 

7 (I) $75,000, or less, in the case 

8 of an individual tax return filer; 

9 (II) $150,000, or less, in the case 

10 of a joint return filer; or 

11 (III) $112,500, or less, in the 

12 case of an individual filing as a head 

13 of household; 

14 (C) attests to the holder of a qualified loan 

15 that the consumer is unemployed; or 

16 (D) is a seasonal or temporary worker. 

17 SEC. 3. CPR FUND. 

18 (a) ESTABLISHMENT.—There is established the Con19 sumer Protection Relief Fund, which shall be used by the 

20 Administrator to make payments to holders of qualified 

21 loans under section 4. 

22 (b) USE OF OUTSIDE ENTITIES.—In carrying out 

23 this Act, the Administrator may— 

24 (1) consult with other agencies of the Federal 

25 Government; and 


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1 (2) enter into contracts with private sector enti2 ties, at reasonable or market rates. 

3 (c) RULEMAKING.—The Administrator shall issue 

4 such rules as may be necessary to carry out this Act. 

5 (d) FUNDING.— 

6 (1) APPROPRIATION.—There is appropriated to 

7 the Fund, out of any amounts in the Treasury not 

8 otherwise appropriated, for the fiscal year ending 

9 September 30, 2020, to remain available until Sep10 tember 30, 2021, $10,000,000,000 for the cost of 

11 making payments to holders of qualified loans under 

12 this Act and the cost of administering this Act. 

13 (2) USE OF FUNDS AFTER THE PROGRAM.— 

14 (A) IN GENERAL.—Any amounts appro15 priated under paragraph (1) that have not been 

16 obligated by the date described under subpara17 graph (B) shall be transferred to the CDFI 

18 Fund and used by the Administrator to— 

19 (i) extend or promote access to re20 sponsible lending; 

21 (ii) develop technology resources; 

22 (iii) hire necessary staff; or 

23 (iv) extend credit to community devel24 opment financial institutions. 


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1 (B) DATE.—The date described in this 

2 subparagraph is the later of— 

3 (i) December 31, 2021; and 

4 (ii) the date on which the Adminis5 trator determines that the national unem6 ployment rate has been 8 percent or less 

7 for a period of 90 days. 

8 SEC. 4. PAYMENTS WITH RESPECT TO QUALIFIED LOANS. 

9 (a) IN GENERAL.—The Administrator shall make 

10 payments to holders of qualified loans— 

11 (1) upon submission of the qualified loans to 

12 the Administrator; and 

13 (2) after the Administrator determines such 

14 loans are compliant with this Act. 

15 (b) LIMITATIONS ON AMOUNT.— 

16 (1) MAXIMUM AMOUNT.—The amount of a pay17 ment described under subsection (a) shall not exceed 

18 the covered amount. 

19 (2) AGGREGATE LIMITATION PER INDI20 VIDUAL.—The aggregate amount of payments made 

21 under this Act with respect to a single vulnerable 

22 borrower may not exceed $9,500. 

23 (c) REQUIREMENTS ON HOLDERS OF QUALIFIED

24 LOANS.— 


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1 (1) ADMINISTRATOR FEE.—With respect to any 

2 payments to holders of a qualified loan under this 

3 Act, the Administrator shall charge the holders of 

4 the loan a fee equal to 5 percent of the outstanding 

5 principal and interest due on the loan at the time 

6 the payment is made. 

7 (2) REQUIREMENTS BEFORE PAYMENT.—No 

8 person may receive a payment under this Act with 

9 respect to a qualified loan unless they comply with 

10 the following: 

11 (A) At the time of the payment, the person 

12 commits to issuing or purchasing other quali13 fied loans in an amount that is at least equal 

14 in value to the amount of such payment re15 ceived. 

16 (B) The person forgives the remaining bal17 ance on the loan, along with any late fees or 

18 other fees related to the loan. 

19 (C) The person terminates any negative re20 porting to consumer reporting agencies with re21 spect to the loan. 

22 (D) With respect to the borrower of the 

23 qualified loan, if the borrower applies for an ex24 tension of credit in the future, the person shall 

25 not take the borrower’s performance on the 


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1 qualified loan into consideration for purposes of 

2 performing underwriting for such application. 

3 (E) The person provides for either forbear4 ance or deferral options for distressed bor5 rowers. 

6 SEC. 5. NOTIFICATION TO BORROWER BEFORE CERTAIN 

7 TRANSFERS OF OR COLLECTIONS ON A 

8 QUALIFIED LOAN. 

9 (a) IN GENERAL.—With respect to any qualified loan 

10 (regardless of whether a payment is made with respect to 

11 the qualified loan under this Act), the holder of the quali12 fied loan may not sell or otherwise transfer the loan, or 

13 attempt to collect on the loan if it is in default or delin14 quency, unless the holder has notified the borrower of the 

15 possibility of a payment under this Act. 

16 (b) TERMINATION.—This section shall have no force 

17 or effect after the date described under section 3(d)(2)(B). 

Æ 


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