I 
112TH CONGRESS 
1ST SESSION 
H. R. 336 
To amend the Truth in Lending Act to protect consumers from usury, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 19, 2011 
Mr. HINCHEY (for himself, Mr. TIERNEY, Mr. COHEN, Mr. FILNER, Mr. 
GEORGE MILLER of California, Ms. WOOLSEY, Mr. GRIJALVA, and Mr. 
JACKSON of Illinois) introduced the following bill; which was referred to 
the Committee on Financial Services 
A BILL 
To amend the Truth in Lending Act to protect consumers 
from usury, 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 ‘‘Interest Rate Reduc-
tion Act’’. 
SEC. 2. NATIONAL CONSUMER CREDIT USURY RATE. 
Section 107 of the Truth in Lending Act (15 U.S.C. 
1606) is amended by adding at the end the following new 
subsection: 
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‘‘(f) NATIONAL CONSUMER CREDIT USURY RATE.— 
‘‘(1) 
LIMITATION
ESTABLISHED.—Notwith-
standing subsection (a) or any other provision of 
law, but except as provided in paragraph (2), the an-
nual percentage rate applicable to any extension of 
credit may not exceed 15 percent on unpaid bal-
ances, inclusive of all finance charges. Any fees that 
are not considered finance charges under section 
106(a) may not be used to evade the limitations of 
this paragraph, and the total sum of such fees may 
not exceed the total amount of finance charges as-
sessed. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) BOARD AUTHORITY.—The Board may 
establish, after consultation with the appro-
priate committees of Congress, the Secretary of 
the Treasury, and any other interested Federal 
financial institution regulatory agency, an an-
nual percentage rate of interest ceiling exceed-
ing the 15 percent annual rate under paragraph 
(1) for periods of not to exceed 18 months, 
upon a determination that— 
‘‘(i) money market interest rates have 
risen over the preceding 6-month period; 
and 
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‘‘(ii) prevailing interest rate levels 
threaten the safety and soundness of indi-
vidual lenders, as evidenced by adverse 
trends in liquidity, capital, earnings, and 
growth. 
‘‘(B) TREATMENT OF CREDIT UNIONS.— 
The limitation in paragraph (1) shall not apply 
with respect to any extension of credit by an in-
sured credit union, as that term is defined in 
section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752). 
‘‘(3) 
PENALTIES
FOR
CHARGING
HIGHER 
RATES.— 
‘‘(A) VIOLATION.—The taking, receiving, 
reserving, or charging of an annual percentage 
rate or fee greater than that permitted by para-
graph (1), when knowingly done, shall be 
deemed a violation of this title, and a forfeiture 
of the entire interest which the note, bill, or 
other evidence of the obligation carries with it, 
or which has been agreed to be paid thereon. 
‘‘(B) REFUND OF INTEREST AMOUNTS.—If 
an annual percentage rate or fee greater than 
that permitted under paragraph (1) has been 
paid, the person by whom it has been paid, or 
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the legal representative thereof, may, by bring-
ing an action not later than 2 years after the 
date on which the usurious collection was last 
made, recover back from the lender in an action 
in the nature of an action of debt, the entire 
amount of interest, finance charges, or fees 
paid. 
‘‘(4) CIVIL LIABILITY.—Any creditor who vio-
lates this subsection shall be subject to the provi-
sions of section 130.’’. 
SEC. 3. CIVIL LIABILITY CONFORMING AMENDMENT. 
Section 130(a) of the Truth in Lending Act (15 
U.S.C. 1640(a)) is amended by inserting ‘‘section 107(f),’’ 
before ‘‘this chapter’’. 
Æ 
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