Sec. 4. Establishment of Commission. 
Sec. 5. Authorization of appropriations. 
Sec. 6. Objectives and responsibilities. 
Sec. 7. Coordination of enforcement. 
Sec. 8. Authorities. 
Sec. 9. Collaboration with Federal and State entities. 
Sec. 10. Procedures and rulemaking. 
Sec. 11. Prohibited acts. 
Sec. 12. Penalties for violations. 
Sec. 13. Reports. 
Sec. 14. Effective date. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) the Nation’s multi-agency financial services 
regulatory structure has created a dispersion of reg-
ulatory responsibility, which in turn has led to an in-
adequate focus on protecting consumers from inap-
propriate consumer credit practices; 
(2) the absence of appropriate oversight has al-
lowed excessively costly or predatory consumer credit 
products to flourish; and 
(3) the creation of a regulator whose sole focus 
is the safety of consumer credit products would help 
address this lack of consumer protection. 
SEC. 3. DEFINITIONS. 
For purposes of this Act— 
(1) the term ‘‘consumer credit’’ includes— 
(A) any payment compensating a creditor 
or prospective creditor, or an agent or affiliate 
thereof, for an extension of credit or making 
available a line of credit; 
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(B) any fees connected with credit exten-
sion or availability, such as numerical periodic 
rates, late fees, creditor-imposed not sufficient 
funds fees charged when a borrower tenders 
payment on a debt with a check drawn on in-
sufficient funds, over limit fees, annual fees, 
cash advance fees, or membership fees; 
(C) any fees which constitute a finance 
charge; 
(D) credit insurance premiums; 
(E) all charges and costs for ancillary 
products sold in connection with or incidental to 
the credit transaction; and 
(F) any direct or indirect fee, cost, or 
charge incurred in, in connection with, or ancil-
lary to a consumer payment system, including 
but not exclusive to merchant discount fees, 
interchange fees, debit card fees, check-writing 
fees, automated clearinghouse fees, payment-by- 
phone fees, internet payment intermediary fees, 
and remote deposit capture fees; 
(2) the term ‘‘relevant congressional commit-
tees’’ means the Committee on Banking, Housing, 
and Urban Affairs and the Subcommittee on Finan-
cial Services and General Government of the Com-
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mittee on Appropriations of the Senate, and the 
Committee on Financial Services and the Sub-
committee on Financial Services and General Gov-
ernment of the Committee on Appropriations of the 
House of Representatives, and any successor com-
mittees as may be constituted; 
(3) the term ‘‘creditor’’ has the same meaning 
as in section 103 of the Truth in Lending Act (15 
U.S.C. 1602); 
(4) the term ‘‘finance charge’’ has the same 
meaning as in section 106 of the Truth in Lending 
Act (15 U.S.C. 1605); and 
(5) the term ‘‘consumer’’ means any natural 
person and any small business concern, as defined in 
section 3 of the Small Business Act (15 U.S.C. 
632). 
SEC. 4. ESTABLISHMENT OF COMMISSION. 
(a) ESTABLISHMENT; CHAIRPERSON.— 
(1) IN GENERAL.—An independent regulatory 
commission is hereby established, to be known as the 
‘‘Consumer Credit Safety Commission’’ (in this Act 
referred to as the ‘‘Commission’’), consisting of 5 
Commissioners appointed by the President, by and 
with the advice and consent of the Senate. 
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(2) MEMBERSHIP.—In making appointments to 
the Commission, the President shall consider individ-
uals who, by reason of their background and exper-
tise in areas related to consumer credit, are qualified 
to serve as members of the Commission. 
(3) CHAIRPERSON.—The Chairperson shall be 
appointed by the President, by and with the advice 
and consent of the Senate, from among the members 
of the Commission. An individual may serve as a 
member of the Commission and as Chairperson at 
the same time. 
(4) REMOVAL.—Any member of the Commis-
sion may be removed by the President for neglect of 
duty or malfeasance in office, but for no other cause. 
(b) TERM; VACANCIES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2)— 
(A) the Commissioners first appointed 
under this section shall be appointed for terms 
ending 3, 4, 5, 6, and 7 years, respectively, 
after the date of enactment of this Act, the 
term of each to be designated by the President 
at the time of nomination; and 
(B) each of their successors shall be ap-
pointed for a term of 5 years from the date of 
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the expiration of the term for which the prede-
cessor was appointed. 
(2) 
LIMITATIONS.—Any 
Commissioner 
ap-
pointed to fill a vacancy occurring prior to the expi-
ration of the term for which his predecessor was ap-
pointed shall be appointed only for the remainder of 
such term. A Commissioner may continue to serve 
after the expiration of this term until a successor 
has taken office, except that such Commissioner may 
not continue to serve more than 1 year after the 
date on which the term of that Commissioner would 
otherwise expire under this subsection. 
(c) RESTRICTIONS ON OUTSIDE ACTIVITIES.— 
(1) POLITICAL AFFILIATION.—Not more than 3 
of the Commissioners shall be affiliated with the 
same political party. 
(2) CONFLICTS OF INTEREST.—No individual 
may hold the office of Commissioner if that indi-
vidual— 
(A) is in the employ of, or holding any offi-
cial relation to, or married to any person en-
gaged in selling or devising consumer credit; 
(B) owns stock or bonds of substantial 
value in a person so engaged; 
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(C) is in any other manner pecuniarily in-
terested in such a person, or in a substantial 
supplier of such a person; or 
(D) engages in any other business, voca-
tion, or employment. 
(d) QUORUM; SEAL; VICE CHAIRPERSON.— 
(1) QUORUM.—No vacancy in the Commission 
shall impair the right of the remaining Commis-
sioners to exercise all the powers of the Commission, 
but 3 members of the Commission shall constitute a 
quorum for the transaction of business, except that 
if there are only 3 members serving on the Commis-
sion because of vacancies in the Commission, 2 
members of the Commission shall constitute a 
quorum for the transaction of business, and if there 
are only 2 members serving on the Commission be-
cause of vacancies in the Commission, 2 members 
shall constitute a quorum for the 6-month period (or 
the 1-year period, if the 2 members are not affiliated 
with the same political party) beginning on the date 
of the vacancy which caused the number of Commis-
sion members to decline to 2. 
(2) SEAL.—The Commission shall have an offi-
cial seal of which judicial notice shall be taken. 
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(3) VICE
CHAIRPERSON.—The Commission 
shall annually elect a Vice Chairperson to act in the 
absence or disability of the Chairperson or in case 
of a vacancy in the office of the Chairperson. 
(e) OFFICES.—The Commission shall maintain a 
principal office and such field offices as it deems nec-
essary, and may meet and exercise any of its powers at 
any other place. 
(f) FUNCTIONS OF CHAIRPERSON; REQUEST FOR AP-
PROPRIATIONS.— 
(1) DUTIES.—The Chairperson of the Commis-
sion shall be the principal executive officer of the 
Commission, and shall exercise all of the executive 
and administrative functions of the Commission, in-
cluding functions of the Commission with respect 
to— 
(A) the appointment and supervision of 
personnel employed under the Commission (and 
the Commission shall fix their compensation at 
a level comparable to that for employees of the 
Securities and Exchange Commission); 
(B) the distribution of business among per-
sonnel appointed and supervised by the Chair-
person and among administrative units of the 
Commission; and 
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(C) the use and expenditure of funds. 
(2) GOVERNANCE.—In carrying out any of the 
functions of the Chairperson under this subsection, 
the Chairperson shall be governed by general policies 
of the Commission and by such regulatory decisions, 
findings, and determinations as the Commission 
may, by law, be authorized to make. 
(3) REQUESTS
FOR
APPROPRIATIONS.—Re-
quests or estimates for regular, supplemental, or de-
ficiency appropriations on behalf of the Commission 
may not be submitted by the Chairperson without 
the prior approval of the Commission. 
(g) AGENDA AND PRIORITIES; ESTABLISHMENT AND 
COMMENTS.—At least 30 days before the beginning of 
each fiscal year, the Commission shall establish an agenda 
for Commission action under its jurisdiction and, to the 
extent feasible, shall establish priorities for such actions. 
Before establishing such agenda and priorities, the Com-
mission shall conduct a public hearing on the agenda and 
priorities, and shall provide reasonable opportunity for the 
submission of comments. 
SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated for purposes 
of carrying out this Act such sums as may be necessary. 
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SEC. 6. OBJECTIVES AND RESPONSIBILITIES. 
(a) OBJECTIVES.—The objectives of the Commission 
are— 
(1) to minimize unreasonable consumer risk as-
sociated with buying and using consumer credit; 
(2) to prevent and eliminate unfair practices 
that lead consumers to incur unreasonable, inappro-
priate, or excessive debt, or make it difficult for con-
sumers to escape existing debt, including practices 
or product features that are abusive, fraudulent, un-
fair, deceptive, predatory, anticompetitive, or other-
wise inconsistent with consumer protection; 
(3) to promote practices that assist and encour-
age consumers to use credit responsibly, avoid exces-
sive debt, and avoid unnecessary or excessive 
charges derived from or associated with credit prod-
ucts; 
(4) to ensure that credit history is maintained, 
reported, and used fairly and accurately; 
(5) to maintain strong privacy protections for 
consumer credit transactions, credit history, and 
other personal information associated with the use of 
consumer credit; 
(6) to collect, investigate, resolve, and inform 
the public about consumer complaints regarding con-
sumer credit; 
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(7) to ensure a fair system of consumer dispute 
resolution in consumer credit; and 
(8) to take such other steps as are reasonable 
to protect consumers of credit products. 
(b) RESPONSIBILITIES.—The Commission shall— 
(1) promulgate consumer credit safety rules 
that— 
(A) ban abusive, fraudulent, unfair, decep-
tive, predatory, anticompetitive, or otherwise 
anti-consumer practices or product features for 
creditors; 
(B) place reasonable restrictions on con-
sumer credit practices or product features to re-
duce the likelihood that they may be provided 
in a manner that is inconsistent with the objec-
tives specified in subsection (a); and 
(C) establish requirements for such clear 
and adequate warnings or other information, 
and the form of such warnings or other infor-
mation, as may be appropriate to advance the 
objectives specified in subsection (a); 
(2) establish and maintain a best practices 
guide for all providers of consumer credit; 
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(3) conduct such continuing studies and inves-
tigations of consumer credit industry practices as it 
deems necessary; 
(4) award grants or enter into contracts for the 
conduct of such studies and investigations with any 
person (including a governmental entity); 
(5) following publication of an advance notice of 
proposed rulemaking, a notice of proposed rule-
making, or a rule under any rulemaking authority 
administered by the Commission, assist public and 
private organizations or groups of consumer credit 
providers, administratively and technically, in the de-
velopment of consumer credit safety standards or 
guidelines that would assist such providers in com-
plying with such rule; and 
(6) establish and operate a consumer credit cus-
tomer hotline which consumers can call to register 
complaints and receive information on how to com-
bat anti-consumer consumer credit. 
SEC. 7. COORDINATION OF ENFORCEMENT. 
(a) IN GENERAL.—Notwithstanding any concurrent 
or similar authority of any other agency, the Commission 
shall enforce the requirements of this Act. 
(b) RULE OF CONSTRUCTION.—The authority grant-
ed to the Commission to make and enforce rules under 
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this Act shall not be construed to impair the authority 
of any other Federal agency to make and enforce rules 
under any other provision of law, provided that any por-
tion of any rule promulgated by any other such agency 
that conflicts with a rule promulgated by the Commission 
and that is less protective of consumers than the rule pro-
mulgated by the Commission shall be superseded by the 
stronger rule promulgated by the Commission, to the ex-
tent of the conflict. Any portion of any rule promulgated 
by any other such agency that is not superseded by a rule 
promulgated by the Commission shall remain in force 
without regard to this Act. 
(c) AGENCY AUTHORITY.—Any agency designated in 
subsection (d) may exercise, for the purpose of enforcing 
compliance with any requirement imposed under this Act, 
any authority conferred on such agency by any other Act. 
(d) DESIGNATED
AGENCIES.—The agencies des-
ignated in this subsection are— 
(1) the Board of Governors of the Federal Re-
serve System; 
(2) the Federal Deposit Insurance Corporation; 
(3) the Office of the Comptroller of the Cur-
rency; 
(4) the Office of Thrift Supervision; 
(5) the National Credit Union Administration; 
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(6) the Federal Housing Finance Authority; 
(7) the Federal Housing Administration; 
(8) the Secretary of Housing and Urban Devel-
opment; 
(9) the Federal Home Loan Bank Board; and 
(10) the Federal Trade Commission. 
SEC. 8. AUTHORITIES. 
(a) AUTHORITY TO CONDUCT HEARINGS OR OTHER 
INQUIRIES.—The Commission may, by one or more of its 
members or by such agents or agency as it may designate, 
conduct any hearing or other inquiry necessary or appro-
priate to its functions anywhere in the United States. A 
Commissioner who participates in such a hearing or other 
inquiry shall not be disqualified solely by reason of such 
participation from subsequently participating in a decision 
of the Commission in the same matter. The Commission 
shall publish notice of any proposed hearing in the Federal 
Register, and shall afford a reasonable opportunity for in-
terested persons to present relevant testimony and data. 
(b) COMMISSION POWERS; ORDERS.—The Commis-
sion shall have the power— 
(1) to require, by special or general orders, any 
person to submit in writing such reports and an-
swers to questions as the Commission may prescribe 
to carry out a specific regulatory or enforcement 
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function of the Commission, and such submission 
shall be made within such reasonable period and 
under oath or otherwise as the Commission may de-
termine, and such order shall contain a complete 
statement of the reasons that the Commission re-
quires the report or answers specified in the order 
to carry out a specific regulatory or enforcement 
function of the Commission, and shall be designed to 
place the least burden on the person subject to the 
order as is practicable, taking into account the pur-
pose for which the order was issued; 
(2) to administer oaths; 
(3) to require by subpoena the attendance and 
testimony of witnesses and the production of all doc-
umentary evidence relating to the execution of its 
duties; 
(4) in any proceeding or investigation to order 
testimony to be taken by deposition before any per-
son who is designated by the Commission and has 
the power to administer oaths and, in such in-
stances, to compel testimony and the production of 
evidence in the same manner as authorized under 
paragraph (3); 
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(5) to pay witnesses the same fees and mileage 
as are paid in like circumstances in the courts of the 
United States; 
(6) to accept voluntary and uncompensated 
services relevant to the performance of the Commis-
sion’s duties, notwithstanding the provisions of sec-
tion 1342 of title 31, United States Code, and to ac-
cept voluntary and uncompensated services (but not 
gifts) relevant to the performance of the Commis-
sion’s duties, provided that any such services shall 
not be from parties that have or are likely to have 
business before the Commission; 
(7) to— 
(A) initiate, prosecute, defend, intervene 
in, or appeal (other than to the Supreme Court 
of the United States), through its own legal 
representative and in the name of the Commis-
sion, any civil action if the Commission makes 
a written request to the Attorney General of the 
United States for representation in such civil 
action and the Attorney General does not with-
in the 45-day period beginning on the date such 
request was made notify the Commission in 
writing that the Attorney General will represent 
the Commission in such civil action; and 
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(B) whenever the Commission obtains evi-
dence that any person, partnership, or corpora-
tion, either domestic or foreign, has engaged in 
conduct that may constitute a violation of Fed-
eral criminal law, including a violation of sec-
tion 11 of this Act, transmit such evidence to 
the Attorney General of the United States, who 
may institute criminal proceedings under appro-
priate statutes; and 
(8) to delegate any of its functions or powers, 
other than the power to issue subpoenas under para-
graph (3), to any officer or employee of the Commis-
sion. 
(c) NONCOMPLIANCE WITH SUBPOENA OR COMMIS-
SION ORDER; CONTEMPT.—Any United States district 
court within the jurisdiction of which any inquiry is car-
ried on, may, upon petition by the Commission (subject 
to subsection (b)(7)) or by the Attorney General of the 
United States, in case of refusal to obey a subpoena or 
order of the Commission issued under subsection (b), issue 
an order requiring compliance therewith. Any failure to 
obey the order of the court may be punished by the court 
as a contempt thereof. 
(d) DISCLOSURE OF INFORMATION.—No person shall 
be subject to civil liability to any person (other than the 
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Commission or the United States) for disclosing informa-
tion to the Commission. 
(e) CUSTOMER AND REVENUE DATA.—The Commis-
sion may by rule require any provider of consumer credit 
to provide to the Commission such customer and revenue 
data as may be required to carry out the purposes of this 
Act. 
(f) PURCHASE OF CONSUMER CREDIT BY COMMIS-
SION.—For purposes of carrying out this Act, the Com-
mission may purchase any consumer credit, and it may 
require any provider of consumer credit to sell the service 
to the Commission at cost. 
(g) CONTRACT AUTHORITY.—The Commission is au-
thorized to enter into contracts with governmental entities, 
private organizations, or individuals for the conduct of ac-
tivities authorized by this Act. 
(h) BUDGET ESTIMATES AND REQUESTS; LEGISLA-
TIVE RECOMMENDATIONS; TESTIMONY; COMMENTS
ON 
LEGISLATION.— 
(1) BUDGET COPIES TO CONGRESS.—Whenever 
the Commission submits any budget estimate or re-
quest to the President or the Office of Management 
and Budget, it shall concurrently transmit a copy of 
that estimate or request to the relevant congres-
sional committees. 
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