IB 

Union Calendar No. 336 

116TH CONGRESS 

2D SESSION H. R. 3490 

[Report No. 116–417] 

To amend the Truth in Lending Act to prohibit certain unfair credit practices, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2019 

Ms. VELA ́ZQUEZ (for herself, Mr. MARSHALL, and Mr. SCHNEIDER) introduced the following bill; which was referred to the Committee on Financial Services 

MARCH 19, 2020 

Reported with an amendment; committed to the Committee of the Whole 

House on the State of the Union and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on June 25, 2019] 


kjohnson on DSK79L0C42PROD with BILLS
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•HR 3490 RH

A BILL 

To amend the Truth in Lending Act to prohibit certain 

unfair credit practices, and for other purposes. 


kjohnson on DSK79L0C42PROD with BILLS
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•HR 3490 RH

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 ‘‘Small Business Lending 

5 Fairness Act’’. 

6 SEC. 2. OBLIGOR TRANSACTIONS. 

7 (a) IN GENERAL.—Chapter 2 of the Truth in Lending 

8 Act (15 U.S.C. 1631 et seq.) is amended by adding at the 

9 end the following: 

10 ‘‘§ 140B. Unfair credit practices 

11 ‘‘(a) IN GENERAL.—In connection with the extension 

12 of credit or creation of debt in or affecting commerce, as 

13 defined in section 4 of the Federal Trade Commission Act 

14 (15 U.S.C. 44), including any advance of funds or sale or 

15 assignment of future income or receivables that may or may 

16 not be credit, no person may directly or indirectly take or 

17 receive from another person an obligation that constitutes 

18 or contains a cognovit or confession of judgment (for pur19 poses other than executory process in the State of Lou20 isiana), warrant of attorney, or other waiver of the right 

21 to notice and the opportunity to be heard in the event of 

22 suit or process thereon. 

23 ‘‘(b) EXEMPTION.—The exemption in section 104(1) 

24 shall not apply to this section.’’. 

25 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 


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•HR 3490 RH

1 (1) Section 103 of the Truth in Lending Act (15 

2 U.S.C. 1602) is amended by adding at the end the fol3 lowing: 

4 ‘‘(ff) The term ‘debt’ means any obligation of a person 

5 to pay to another person money— 

6 ‘‘(1) regardless of whether such obligation is ab7 solute or contingent if the understanding between the 

8 parties is that any part of the money shall be or may 

9 be returned; 

10 ‘‘(2) that includes the right of the person pro11 viding the money to an equitable remedy for breach 

12 of performance if the breach gives rise to a right to 

13 payment; and 

14 ‘‘(3) regardless of whether the obligation or right 

15 to an equitable remedy described in paragraph (2) 

16 has been reduced to judgment, fixed, contingent, ma17 tured, unmatured, disputed, undisputed, secured, or 

18 unsecured.’’. 

19 (2) Section 130(a) of the Truth in Lending Act 

20 (15 U.S.C. 1640) is amended by striking ‘‘creditor’’ 

21 each place the term appears and inserting ‘‘person’’. 

22 (3) The table of sections in chapter 2 of the 

23 Truth in Lending Act (15 U.S.C. 1631 et seq.) is 

24 amended by adding at the end the following: 

‘‘140B. Unfair credit practices.’’. 


kjohnson on DSK79L0C42PROD with BILLS

kjohnson on DSK79L0C42PROD with BILLS
Union Calendar No. 336 

116TH CONGRESS 

2D SESSION H. R. 3490 

[Report No. 116–417] 

A BILL 

To amend the Truth in Lending Act to prohibit 

poses. certain unfair credit practices, and for other purMARCH 19, 2020 

Reported with an amendment; committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union 


kjohnson on DSK79L0C42PROD with BILLS