ASSURE Act of 2015

To provide for additional protections and disclosures to consumers when financial products or services are related to the consumers’ military or Federal pensions, and for other purposes. 1. Short title This Act may be cited as the Annuity Safety and Security Under Reasonable Enforcement Act of 2015 ASSURE Act of 2015 2. Consideration of Federal and military pensions in extensions of credit The Truth in Lending Act ( 15 U.S.C. 1601 et seq. (1) in section 104(3), by inserting after other than payments described under section 126(a) and (2) by inserting after section 125 the following: 126. Payments in consideration of Federal and military pensions (a) Disclosure The Bureau shall issue regulations requiring any payment to a benefit recipient, whether or not such payment is an extension of credit, that diminishes the benefit recipient’s ability to control the payments from their Federal or military pension in any way, to be treated as an extension of credit for purposes of the disclosures required under this title. (b) Interest rate cap With respect to a payment to a benefit recipient described under subsection (a)— (1) if such payment is an extension of consumer credit, a creditor may not impose an annual percentage rate of interest greater than the Federal funds rate plus 6 percent; and (2) if such payment is not an extension of consumer credit, the Bureau shall issue regulations requiring that the aggregate amount of cash and property paid in exchange for such payment may not exceed an amount that is equivalent to the interest rate described under paragraph (1). (c) Definitions For purposes of this section: (1) Benefit recipient The term benefit recipient (2) Federal or military pension The term Federal or military pension (A) a benefit described under section 5301(a) of title 38, United States Code; (B) retired pay to an enlisted member of the Army, Navy, Air Force, Marine Corps, or Coast Guard; and (C) an annuity described under section 8345 or 8465 of title 5, United States Code. (3) Federal funds rate For purposes of this section, the term Federal funds rate ; and (3) in the table of contents for chapter 2 of such Act, by inserting after the item relating to section 125 the following: 126. Payments in consideration of Federal and military pensions. . 3. Clarification of assignments; private rights of actions (a) Veterans benefits Section 5301 of title 38, United States Code, is amended by adding at the end the following: (f) Private right of action (1) In general A benefit recipient may bring an action against a pension assignee in the appropriate Federal or State court and recover— (A) three times the damages suffered due to the assignment made in violation of this section; (B) court costs; and (C) reasonable attorneys’ fees and expenses. (2) Definitions For purposes of this subsection: (A) Benefit recipient The term benefit recipient (B) Pension assignee With respect to a benefit recipient, the term pension assignee . (b) Military retired pay Section 701 of title 37, United States Code, is amended by adding at the end the following: (f) Clarification on non-Assignment of retired pay for enlisted members (1) In general For purposes of this subsection (c), in any case where an enlisted member is entitled to retired pay and enters into an agreement with another person under which agreement such other person acquires for consideration the right to receive payment of such retired pay, whether by payment from the member to such other person, deposit into an account from which such other person may make withdrawals, or otherwise, such agreement shall be deemed to be an assignment and is prohibited. Any agreement or arrangement for collateral for security for an agreement that is prohibited under the previous sentence is also prohibited. (2) Private right of action (A) In general A retired pay recipient may bring an action against a retired pay assignee in the appropriate Federal or State court and recover— (i) three times the damages suffered due to the assignment of retired pay made in violation of this section; (ii) court costs; and (iii) reasonable attorneys’ fees and expenses. (B) Definitions For purposes of this subsection: (i) Retired pay recipient The term retired pay recipient (ii) Retired pay assignee With respect to a retired pay recipient, the term retired pay assignee . (c) CSRS annuities Section 8345(h) of title 5, United States Code, is amended to read as follows: (h) Non-Assignment of annuities (1) In general An individual entitled to an annuity from the Fund may not make allotments or assignments of amounts from such annuity. (2) Construction For purposes of this subsection— (A) in any case where an individual entitled to an annuity from the Fund enters into an agreement with another person under which agreement such other person acquires for consideration the right to receive payment of such annuity, whether by payment from the individual to such other person, deposit into an account from which such other person may make withdrawals, or otherwise, such agreement shall be deemed to be an assignment and is prohibited; and (B) any agreement or arrangement for collateral for security for an agreement that is prohibited under subparagraph (A) is also prohibited. (3) Exception Paragraphs (1) and (2) shall not apply to amounts used to pay dues to unions or other employee organizations. (4) Private right of action (A) In general An annuity recipient may bring an action against an annuity assignee in the appropriate Federal or State court and recover— (i) three times the damages suffered due to the assignment made in violation of this subsection or the regulations issued pursuant to this subsection; (ii) court costs; and (iii) reasonable attorneys’ fees and expenses. (B) Definitions For purposes of this paragraph: (i) Annuity assignee With respect to an annuity recipient, the term annuity assignee (ii) Annuity recipient The term annuity recipient . (d) FERS annuities Section 8465(b) of title 5, United States Code, is amended to read as follows: (b) Non-Assignment of annuities (1) In general An individual entitled to an annuity from the Fund may not make allotments or assignments of amounts from such annuity. (2) Construction For purposes of this subsection— (A) in any case where an individual entitled to an annuity from the Fund enters into an agreement with another person under which agreement such other person acquires for consideration the right to receive payment of such annuity, whether by payment from the individual to such other person, deposit into an account from which such other person may make withdrawals, or otherwise, such agreement shall be deemed to be an assignment and is prohibited; and (B) any agreement or arrangement for collateral for security for an agreement that is prohibited under subparagraph (A) is also prohibited. (3) Exception Paragraphs (1) and (2) shall not apply to amounts used to pay dues to unions or other employee organizations. (4) Private right of action (A) In general An annuity recipient may bring an action against an annuity assignee in the appropriate Federal or State court and recover— (i) three times the damages suffered due to the assignment made in violation of this subsection or the regulations issued pursuant to this subsection; (ii) court costs; and (iii) reasonable attorneys’ fees and expenses. (B) Definitions For purposes of this paragraph: (i) Annuity assignee With respect to an annuity recipient, the term annuity assignee (ii) Annuity recipient The term annuity recipient . 4. Bureau of Consumer Financial Protection provisions (a) Regulation of Federal or military pension-Related products Section 1032(f) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5532(f) (g) Regulation of Federal or military pension-Related products (1) In general The Bureau shall issue regulations to require a person offering a Federal or military pension-related product to provide additional disclosures when advertising or selling such product, sufficient to allow consumers to understand how their pension relates to the product. (2) Definitions defined For purposes of this subsection: (A) Federal or military pension The term Federal or military pension (i) a benefit described under section 5301(a) of title 38, United States Code; (ii) retired pay to an enlisted member of the Army, Navy, Air Force, Marine Corps, or Coast Guard; and (iii) an annuity described under section 8345 or 8465 of title 5, United States Code. (B) Federal or military pension-related product The term Federal or military pension-related product . (b) Study by the Bureau (1) In general The Bureau of Consumer Financial Protection shall carry out a study of financial products and services that target military retirees and Federal employee retirees. (2) Report Not later than the end of the 3-month period beginning on the date of the enactment of this Act, the Bureau shall issue a report to the Congress containing all findings and determinations made in carrying out the study required under this subsection.

Summary: Annuity Safety and Security Under Reasonable Enforcement Act of 2015 or the ASSURE Act of 2015 Amends the Truth in Lending Act to direct the Consumer Financial Protection Bureau (CFPB) to issue regulations requiring any payment to a recipient of a federal or military pension (a benefit recipient) that diminishes the benefit recipient's ability to control payments from such pension to be treated as an extension of credit. Requires financial institutions to include the terms of such credit in consumer information disclosures. Prohibits the annual percentage rate of interest on such arrangements from exceeding the federal funds rate plus 6% or an equivalent aggregate amount of cash and property. Specifies conditions under which payment of consideration in exchange for the retired pay of enlisted military members is prohibited from assignment under veterans' benefits laws. Prohibits individuals from making allotments or assignments from annuities under the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS), including any agreement under which another person acquires for consideration the right to receive payment from such annuities as well as any arrangement for collateral for security for such an agreement. Exempts union dues or payments to employee organizations from such prohibitions. Authorizes benefit recipients, individuals entitled to military retired pay, and annuity recipients to bring a private legal action in federal or state court against an assignee engaging in prohibited assignments. Amends the Consumer Financial Protection Act of 2010 to direct the CFPB to issue regulations requiring persons offering federal or military pension-related products to provide additional disclosures when advertising or selling such products to allow consumers to understand how their pension relates to the product.