I 
118TH CONGRESS 
2D SESSION 
H. R. 8356 
To amend the Truth in Lending Act to provide for a safe harbor for small- 
dollar credit products, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 10, 2024 
Mrs. KIM of California introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Truth in Lending Act to provide for a safe 
harbor for small-dollar credit products, and for other 
purposes. 
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 ‘‘Small Dollar Loan 
Certainty Act’’. 
SEC. 2. SAFE HARBOR FOR SMALL-DOLLAR CREDIT PROD-
UCTS. 
(a) IN GENERAL.—The Truth in Lending Act (15 
U.S.C. 1601 et seq.) is amended by inserting after section 
109 the following: 
VerDate Sep 11 2014 
22:29 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H8356.IH
H8356
ssavage on LAPJG3WLY3PROD with BILLS
‘‘§ 110. Safe harbor for small-dollar credit products 
‘‘(a) IN GENERAL.—If a covered entity complies with 
the requirements set forth in subsections (b), (c), and (e) 
with respect to the offering of a small-dollar product to 
a consumer, such covered entity shall not be liable in con-
nection with such offering of a small-dollar product, for— 
‘‘(1) any civil money penalties from any en-
forcement action brought by the Bureau, the appro-
priate Federal banking agency, or the National 
Credit Union Administration for a violation of this 
title; or 
‘‘(2) any damages or other monetary relief 
through a private right of action brought under this 
title. 
‘‘(b) PRODUCT STRUCTURE REQUIREMENTS.— 
‘‘(1) IN
THE
CASE
OF
AN
INSTALLMENT 
LOAN.—If a small-dollar credit product is structured 
by a covered entity as an installment loan— 
‘‘(A) the repayment term shall be more 
than 45 days; 
‘‘(B) payments shall be fully amortized 
across more than one payment; 
‘‘(C) rollovers into new small-dollar credit 
products shall be prohibited; and 
‘‘(D) the covered entity may not issue any 
small-dollar credit product to a consumer if 
VerDate Sep 11 2014 
22:29 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H8356.IH
H8356
ssavage on LAPJG3WLY3PROD with BILLS
such consumer has a small-dollar credit product 
open with such covered entity at the time such 
consumer applies for a small-dollar credit prod-
uct. 
‘‘(2) IN THE CASE OF A LINE OF CREDIT.—If 
a small-dollar credit product is structured by a cov-
ered entity as a line of credit— 
‘‘(A) the repayment term for each draw 
shall be more than 45 days unless a single pay-
ment is used and the draw is not more than 10 
percent of the lesser of $3,500 or 20 percent of 
the total amount of a consumer’s average 
monthly direct deposits during the preceding six 
months; and 
‘‘(B) payments for each draw shall be fully 
amortized across more than one payment, ex-
cept in the case of any single-payment loans. 
‘‘(3) RULES OF CONSTRUCTION.— 
‘‘(A) IN GENERAL.—Nothing in this sub-
section may be construed to prohibit the Bu-
reau, a Federal banking agency, or the National 
Credit Union Administration from issuing a 
cease-and-desist order or restitution order 
under this title against a covered entity. 
VerDate Sep 11 2014 
22:29 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H8356.IH
H8356
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(B) ENFORCEMENT
OF
OTHER
STAT-
UTES.—Nothing in this subsection may be con-
strued to prohibit the Bureau, a Federal bank-
ing agency, or the National Credit Union Ad-
ministration from enforcing any provision of 
law not contained within this title against a 
covered entity. 
‘‘(c) UNDERWRITING REQUIREMENTS.—When con-
sidering whether to offer a small-dollar credit product to 
a specific consumer, a covered entity— 
‘‘(1) shall use sound underwriting processes; 
and 
‘‘(2) may analyze internal or external data 
sources, including consumer deposit account activity, 
to assess the creditworthiness of a consumer. 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this title 
may be construed to prohibit a covered entity from offer-
ing a small-dollar product that does not comply with the 
safe harbor requirements set forth under this section. 
‘‘(e) ADDITIONAL
LIMITATIONS
AND
REQUIRE-
MENTS.— 
‘‘(1) BALLOON
PAYMENTS.—No payment re-
quired in association with a small-dollar credit prod-
uct offered by a covered entity may be greater than 
VerDate Sep 11 2014 
22:29 Jun 09, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H8356.IH
H8356
ssavage on LAPJG3WLY3PROD with BILLS