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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3490 Reported in House (RH)]

<DOC>

                                                 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. Velazquez (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]

_______________________________________________________________________

                                 A BILL

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

    This Act may be cited as the ``Small Business Lending Fairness 
Act''.

SEC. 2. OBLIGOR TRANSACTIONS.

    (a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended by adding at the end the following:
``Sec. 140B. Unfair credit practices
    ``(a) In General.--In connection with the extension of credit or 
creation of debt in or affecting commerce, as defined in section 4 of 
the Federal Trade Commission Act (15 U.S.C. 44), including any advance 
of funds or sale or assignment of future income or receivables that may 
or may not be credit, no person may directly or indirectly take or 
receive from another person an obligation that constitutes or contains 
a cognovit or confession of judgment (for purposes other than executory 
process in the State of Louisiana), warrant of attorney, or other 
waiver of the right to notice and the opportunity to be heard in the 
event of suit or process thereon.
    ``(b) Exemption.--The exemption in section 104(1) shall not apply 
to this section.''.
    (b) Technical and Conforming Amendments.--
            (1) Section 103 of the Truth in Lending Act (15 U.S.C. 
        1602) is amended by adding at the end the following:
    ``(ff) The term `debt' means any obligation of a person to pay to 
another person money--
            ``(1) regardless of whether such obligation is absolute or 
        contingent if the understanding between the parties is that any 
        part of the money shall be or may be returned;
            ``(2) that includes the right of the person providing the 
        money to an equitable remedy for breach of performance if the 
        breach gives rise to a right to payment; and
            ``(3) regardless of whether the obligation or right to an 
        equitable remedy described in paragraph (2) has been reduced to 
        judgment, fixed, contingent, matured, unmatured, disputed, 
        undisputed, secured, or unsecured.''.
            (2) Section 130(a) of the Truth in Lending Act (15 U.S.C. 
        1640) is amended by striking ``creditor'' each place the term 
        appears and inserting ``person''.
            (3) The table of sections in chapter 2 of the Truth in 
        Lending Act (15 U.S.C. 1631 et seq.) is amended by adding at 
        the end the following:

``140B. Unfair credit practices.''.
                                                 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 certain unfair credit 
                   practices, and for other purposes.

_______________________________________________________________________

                             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
```