I 
117TH CONGRESS 
1ST SESSION H. R. 5974 
To amend the Truth in Lending Act to extend the consumer credit protections 
provided to members of the Armed Forces and their dependents under 
title 10, United States Code, to all consumers. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 15, 2021 
Mr. GARCI´A of Illinois (for himself, Mr. GROTHMAN, Mr. BLUMENAUER, Ms. 
BONAMICI, Mr. CARSON, Mr. DANNY K. DAVIS of Illinois, Ms. GARCIA 
of Texas, Ms. JACKSON LEE, Mr. KRISHNAMOORTHI, Mr. LIEU, Mr. 
LOWENTHAL, Mrs. CAROLYN B. MALONEY of New York, Mr. PAYNE, Mr. 
POCAN, Ms. TLAIB, Mrs. WATSON COLEMAN, and Ms. NORTON) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
A BILL 
To amend the Truth in Lending Act to extend the consumer 
credit protections provided to members of the Armed 
Forces and their dependents under title 10, United 
States Code, to all consumers. 
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 ‘‘Veterans and Con-
sumers Fair Credit Act’’. 
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SEC. 2. LIMITATIONS ON CONSUMER CREDIT AND MAX-
IMUM RATES OF INTEREST. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by adding 
at the end the following: 
‘‘§ 140B. Limitations on consumer credit and max-
imum rates of interest 
‘‘(a) APPLICATION
OF
THE MILITARY LENDING 
ACT.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), section 987(b) of title 10, United States 
Code (commonly referred to as the ‘Military Lending 
Act’), shall apply to a creditor who extends con-
sumer credit to a consumer to the same extent as 
such section applies to a creditor who extends con-
sumer credit to a covered member or a dependent 
with respect to a covered member (as those terms 
are defined in such section 987). 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 
apply to— 
‘‘(A) a residential mortgage; 
‘‘(B) a loan procured in the course of pur-
chasing a car, when that loan is offered for the 
express purpose of financing the purchase and 
is secured by the car procured; or 
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‘‘(C) a loan made by a Federal credit 
union, as that term is defined in section 101 of 
the Federal Credit Union Act (12 U.S.C. 
1752), subject to the usury limit provided under 
section 107(5)(A) of the Federal Credit Union 
Act (12 U.S.C. 1757(5)(A)), as implemented by 
the National Credit Union Administration 
Board. 
‘‘(b) NO EXEMPTIONS PERMITTED.—The exemption 
authority of the Bureau under section 105(f) shall not 
apply with respect to this section. 
‘‘(c) CALCULATION OF THE ANNUAL PERCENTAGE 
RATE FOR OPEN-END CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the annual percentage rate applicable to an 
open end credit plan shall be calculated under sec-
tion 107(a)(2), subject to adjustments to the 
amount considered a finance charge, as provided in 
the rules issued by the Secretary of Defense on July 
22, 2015, to carry out section 987 of title 10, 
United States Code. 
‘‘(2) EXCEPTION
TO
FINANCE
CHARGE
CAL-
CULATION.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), for consumer credit extended in a 
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credit card account under an open end (not 
home-secured) consumer credit plan, a bona 
fide fee other than a periodic rate is not a 
charge required to be included within the fi-
nance charge for purposes of this section if the 
fee is assessed in compliance with section 
127(n). 
‘‘(B) 
LIMITATION.—Subparagraph 
(A) 
shall not apply to— 
‘‘(i) any credit insurance premium or 
fee, including any charge for single pre-
mium credit insurance, any fee for a debt 
cancellation contract, or any fee for a debt 
suspension agreement; or 
‘‘(ii) any fee for a credit-related ancil-
lary product sold in connection with the 
credit card account under an open-end (not 
home-secured) consumer credit plan. 
‘‘(d) RELATION TO STATE LAW.—Nothing in this 
section may be construed to preempt any provision of 
State law that provides greater protection to consumers 
than is provided under this section. 
‘‘(e) PENALTIES AND REMEDIES.—Section 987(f) of 
title 10, United States Code, shall apply to a creditor who 
extends consumer credit to a consumer in violation of this 
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section to the same extent as such section 987(f) applies 
to a creditor who extends consumer credit to a covered 
member or a dependent with respect to a covered member 
(as those terms are defined in such section 987). 
‘‘(f) PRESERVATION OF STATE ENFORCEMENT.— 
‘‘(1) STATE ATTORNEYS GENERAL.—Not later 
than 3 years after the date on which a violation of 
this section occurs, the attorney general of a State 
(or an equivalent official) may bring a civil action in 
the name of that State— 
‘‘(A) in any district court of the United 
States that is located in that State or in a 
State court that is located in that State and 
that has jurisdiction over the defendant; and 
‘‘(B) to— 
‘‘(i) enforce provisions of this section 
or rules issued under this section; and 
‘‘(ii) secure remedies under provisions 
of this section or remedies otherwise pro-
vided under other law. 
‘‘(2) STATE REGULATORS.—Not later than 3 
years after the date on which a violation of this sec-
tion occurs, a State regulator may bring a civil ac-
tion or initiate another appropriate proceeding to— 
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‘‘(A) enforce the provisions of this section 
or regulations issued under this section with re-
spect to any entity that is, or is required to be, 
State-chartered, incorporated, licensed, or oth-
erwise authorized to do business under State 
law; and 
‘‘(B) secure remedies under provisions of 
this section or remedies otherwise provided 
under other provisions of law with respect to an 
entity described in subparagraph (A). 
‘‘(3) NOTICE REQUIREMENT; ADDITIONAL REG-
ULATIONS.—Subsections (b), (c), and (d) of section 
1042 of the Consumer Financial Protection Act of 
2010 (12 U.S.C. 5552), shall apply to a civil action 
or other appropriate proceeding brought or initiated 
under paragraph (1) or (2) to the same extent as 
those subsections apply to actions and other admin-
istrative and regulatory proceedings described in 
subsection (a) of such section 1042. 
‘‘(g) REGULATIONS.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
1027(o) of the Consumer Financial Protection Act 
of 2010 (12 U.S.C. 5517(o)), not later than 1 year 
after the date of enactment of this section, the Bu-
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reau, in consultation with the Secretary of Defense, 
shall— 
‘‘(A) issue rules carrying out this section; 
and 
‘‘(B) notify Congress and the public, in-
cluding on the website of the Bureau, regarding 
the issuance of the rules required under sub-
paragraph (A). 
‘‘(2) CONSISTENCY.—The rules issued by the 
Bureau under paragraph (1)— 
‘‘(A) shall be consistent with rules issued 
by the Secretary of Defense to carry out section 
987 of title 10, United States Code; and 
‘‘(B) may not provide lesser protection to 
consumers than the protection afforded covered 
members, as that term is defined in section 987 
of title 10, United States Code, in applicable 
provisions in the rules issued by the Secretary 
of Defense on July 22, 2015, to carry out such 
section 987.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for chapter 2 of the Truth in Lending Act is amended 
by adding at the end the following: 
‘‘140B. Limitations on consumer credit and maximum rates of interest.’’. 
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(c) APPLICABILITY.—The amendments made by sub-
section (a) shall apply to an extension of credit made after 
the earlier of— 
(1) the date on which the rules issued by the 
Bureau of Consumer Financial Protection under 
subsection (g) of section 140B of the Truth in Lend-
ing Act, as added by subsection (a) of this section, 
require compliance; and 
(2) the date that is 18 months after the date 
of enactment of this Act. 
Æ 
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