I 
111TH CONGRESS 
2D SESSION 
H. R. 5942 
To create a charter for Federal Financial Services and Credit Companies. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2010 
Mr. BACA (for himself, Mr. CLAY, Ms. JACKSON LEE of Texas, Mr. JOHNSON 
of Georgia, Mr. GRAYSON, and Ms. RICHARDSON) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services 
A BILL 
To create a charter for Federal Financial Services and Credit 
Companies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘FFSCC Act of 2010’’. 
SEC. 2. FINDINGS; PURPOSE. 
(a) FINDINGS.—The Congress finds the following: 
(1) According to the Federal Deposit Insurance 
Corporation, more than 60 million low- and mod-
erate-income 
consumers 
in 
America 
remain 
unbanked, underbanked, or underserved. 
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(2) The proportion of United States households 
that are unbanked varies considerably across racial 
and ethnic groups with certain racial and ethnic 
groups being more likely to be unbanked than the 
population as a whole. Minorities more likely to be 
unbanked include Blacks (21.7 percent of Black 
households), Hispanics (19.3 percent), and American 
Indian/Alaskans (15.6 percent). Racial groups less 
likely to be unbanked are Asians (3.5 percent) and 
Whites (3.3 percent). 
(3) Certain racial and ethnic minorities are 
more likely to be underbanked than the population 
as a whole. Minorities more likely to be underbanked 
include Blacks (an estimated 31.6 percent), Amer-
ican Indian/Alaskans (28.9 percent), and Hispanics 
(24.0 percent). Asians and Whites are less likely to 
be underbanked (7.2 percent and 14.9 percent, re-
spectively). 
(4) Households with income under $30,000 ac-
count for at least 71 percent of unbanked house-
holds. As income increases, the share of households 
that are unbanked declines considerably. Nationally, 
nearly 20 percent of lower-income United States 
households—almost 7 million households earning 
below $30,000 per year—do not currently have a 
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bank account. In contrast, only 4.2 percent of house-
holds with annual income between $30,000 and 
$50,000 and less than 1 percent of households with 
yearly income of $75,000 or higher are unbanked. 
(5) Lack of access to affordable banking prod-
ucts and services deters the economic advancement 
of low- and moderate-income consumers and stunts 
the economic growth of communities in which they 
live. 
(b) PURPOSE.—The purpose of this Act is to estab-
lish a vibrant, safe, and commercially viable market for 
underbanked and unbanked individuals to gain access to 
financial services and products. 
SEC. 3. FEDERAL FINANCIAL SERVICES AND CREDIT COM-
PANY. 
(a) IN GENERAL.—The Comptroller of the Currency 
is authorized, under such regulations as the Comptroller 
of the Currency may prescribe, to provide for the organiza-
tion, incorporation, examination, operation, regulation, 
and chartering of companies to be known as Federal Fi-
nancial Services and Credit Companies (hereinafter in this 
Act referred to as ‘‘FFSCCs’’). 
(b) ELIGIBILITY.— 
(1) IN GENERAL.—The Comptroller of the Cur-
rency may not issue an FFSCC charter to a com-
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pany unless the company satisfies the following re-
quirements, as determined by the Comptroller of the 
Currency: 
(A) The company has at least 10 years of 
experience in providing underbanked persons 
with at least three of the following services: 
(i) Installment loans extended to con-
sumers or, in an amount less than 
$10,000, to small businesses. 
(ii) Open-end credit extended to con-
sumers or, in an amount less than 
$10,000, to small businesses. 
(iii) Non-recourse credit extended to 
consumers and secured by personal prop-
erty. 
(iv) The issuing of reloadable stored 
value cards to consumers or small busi-
nesses. 
(v) Ancillary financial services ex-
tended to consumers or small businesses, 
including issuing money orders, sending 
and receiving wire transfers, check cashing 
services, bill payment services, and tax 
preparation services. 
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(vi) Such other short-term consumer 
credit services as the Comptroller of the 
Currency determines appropriate. 
(B) The company is not a depository insti-
tution or a credit union. 
(C) The company submits a business plan 
or operating plan that adequately addresses the 
appropriate statutory and policy considerations. 
Such plan shall— 
(i) reflect sound financial principles 
and demonstrate realistic assessments of 
risk in light of economic and competitive 
conditions in the market for serving under-
banked and unbanked populations; 
(ii) include information sufficient to 
permit the Comptroller of the Currency to 
evaluate the overall management ability of 
the company, especially the ability to pro-
vide financial services to the underbanked 
and unbanked population; and 
(iii) demonstrate that the company is 
aware of, and understands, Federal and 
State banking laws and sound banking op-
erations and practices in the context of 
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serving the needs of the underbanked and 
unbanked populations. 
(D) The company has senior management 
officials who are familiar with applicable Fed-
eral and State banking laws and regulations, 
and the credit and training needs of under-
banked and unbanked customers 
(E) The company has competent manage-
ment, with ability and experience relevant to 
the types of services to be provided, especially 
the ability and experience to design and provide 
financial services to the underbanked and 
unbanked consumer population. 
(2) COMPANY DEFINED.—For purposes of this 
subsection, the term ‘‘company’’ shall include— 
(A) the entity applying for an FFSCC 
charter; 
(B) any wholly-owned subsidiary of such 
entity applying for an FFSCC charter; and 
(C) any other entity that is part of an af-
filiated control group with such entity applying 
for an FFSCC charter. 
(c) REQUIREMENTS PLACED ON FFSCCS.— 
(1) CREDIT DISCLOSURES.— 
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(A) SHORT-TERM
CREDIT.—With respect 
to an extension of short-term credit by an 
FFSCC, the FFSCC shall provide the person to 
whom credit is being extended a clear and 
prominent statement in the loan agreement that 
states the true cost of the loan in terms of an 
actual finance charge per dollar of credit ex-
tended to such person instead of the annual 
percentage rate disclosure required under the 
Truth in Lending Act. 
(B) LONG-TERM CREDIT.—With respect to 
an extension of long-term credit by an FFSCC, 
the FFSCC shall provide the person to whom 
credit is being extended a disclosure of the fi-
nance charge to be paid by the person, ex-
pressed as an ‘‘annual percentage rate’’, using 
that term. 
(2) ACCOUNT
ACCESS.—Each FFSCC shall 
provide continuous account access to the customers 
of the FFSCC, either through a toll-free telephone 
number, the Internet, or both. 
(3) FINANCIAL
LITERACY
PROGRAMS.—Each 
FFSCC shall implement a financial literacy pro-
gram, which shall include— 
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(A) making financial literacy materials 
available to its customers; and 
(B) assisting customers in building and 
improving their credit scores. 
(4) 
ADDITIONAL
REQUIREMENTS.—Each 
FFSCC shall comply with the following: 
(A) Have a primary mission of providing a 
comprehensive array of financial services to the 
underbanked, unbanked, and consumers with 
low credit scores. 
(B) Serve as a vehicle for providing access 
to credit products predominately to consumers 
who are consider unbanked or underbanked. 
(C) File articles of association, articles of 
incorporation, or other appropriate organiza-
tional documents with the Comptroller of the 
Currency. 
(D) Submit to the Comptroller of the Cur-
rency for approval a business plan which, 
among other things, provides in reasonable de-
tail evidence of the knowledge, understanding, 
and experience of the institution and senior 
management of the unique challenges that 
unbanked and underbanked individuals face 
with respect to access to financial credit. 
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(d) FFSCC POWERS.—Subject to such regulations as 
the Comptroller of the Currency may issue, in addition 
to general corporate powers, an FFSCC shall have the 
power to provide the services described under each clause 
of subsection (b)(1)(A). 
(e) PENALTY.—Whoever knowingly violates any pro-
vision of this section, or any regulation issued pursuant 
to this section, shall be fined not more than $20,000 for 
each day such violation continues or imprisoned for not 
more than 3 years, or both. 
(f) FFSCC FEE.—All FFSCCs shall pay an annual 
fee to the Comptroller of the Currency in an amount that 
the Comptroller of the Currency determines is sufficient, 
in the aggregate, to offset the cost to the Comptroller of 
the Currency of carrying out the provisions of this section. 
(g) PREEMPTION OF STATE LAW.—A law of a State 
or political subdivision thereof is preempted if the applica-
tion of such law would have a discriminatory effect on a 
company because such company is chartered as an 
FFSCC. 
SEC. 4. RATES AND TERMS STUDY; DEVELOPMENT OF FI-
NANCIAL PRODUCTS. 
The Comptroller of the Currency shall— 
(1) conduct a study on rates and terms used in 
the extension of credit; and 
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(2) develop a suite of financial products that 
FFSCCs may offer to underbanked persons, that 
will— 
(A) be fair to such persons; and 
(B) economically viable for FFSCCs to 
offer. 
SEC. 5. DEFINITIONS. 
For purposes of this Act: 
(1) CONSUMER.—The term ‘‘consumer’’ shall 
have the meaning given such term under section 
103(h) of the Truth in Lending Act (15 U.S.C. 
1602(h)). 
(2) DEPOSITORY INSTITUTION DEFINITIONS.— 
The terms ‘‘depository institution’’ and ‘‘insured de-
pository institution’’ shall have the meaning given 
such terms under section 3(c) of the Federal Deposit 
Insurance Act. 
(3) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ shall have the meaning given 
such term under section 101(7) of the Federal Cred-
it Union Act. 
(4) LONG-TERM CREDIT.—The term ‘‘long-term 
credit’’ means an extension of credit with an initial 
term of one year or more. 
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(5) SHORT-TERM
CREDIT.—The term ‘‘short- 
term credit’’ means an extension of credit with an 
initial term of less than one year. 
(6) SMALL BUSINESS.—The term ‘‘small busi-
ness’’ means a company with no more than 500 em-
ployees. 
(7) UNDERBANKED.—The term ‘‘underbanked’’ 
means a natural person or a small business that— 
(A) has a deposit account with an insured 
depository institution or an insured credit 
union; and 
(B) has limited or no ability to access non-
depository services from insured depository in-
stitutions or insured credit unions. 
(8) 
UNDERBANKED
PERSON.—The 
term 
‘‘underbanked person’’ means a natural person or a 
small business that is underbanked, unbanked, or 
has a low credit score. 
(9) OTHER
TERMS.—The Comptroller of the 
Currency may issue regulations to define such other 
terms as the Comptroller of the Currency determines 
necessary to carry out this Act. 
Æ 
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