legislation to allow qualified nondepository creditors 
that focus their operations primarily on serving un-
derserved consumers the option of receiving a Fed-
eral charter under which they can be more innova-
tive and operate more efficiently on a nationwide 
basis subject to effective Federal regulation and su-
pervision without being subjected to duplicative and 
conflicting State laws that in many cases limit prod-
uct innovation and choice and raise the cost of con-
sumer credit. 
(12) Small businesses, which are vital to job 
creation and the health of the nation’s economy, also 
have a continuing need for additional credit alter-
natives, and allowing federally chartered nondeposi-
tory creditors to offer certain financial products and 
services to small businesses would be in the national 
interest. 
(b) PURPOSE AND INTENT.—The purpose and intent 
of this Act is to— 
(1) provide underserved consumers greater ac-
cess to innovative, affordable, commercially viable, 
and better suited financial products or services; 
(2) create a Federal charter for qualified non-
depository creditors that focus their business on 
meeting the credit needs of underserved consumers 
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and small businesses so that such creditors can op-
erate more efficiently and effectively under uniform 
Federal lending standards rather than under the 
widely varying, often conflicting, unnecessarily cost-
ly, and burdensome system of State lending laws 
that currently apply to nondepository creditors; and 
(3) require that the Comptroller promptly adopt 
reasonable and flexible policies and procedures to en-
sure the approval of applications for Federal char-
ters for nondepository creditors and of commercially 
viable financial products to be offered by such credi-
tors to underserved consumers and small businesses. 
SEC. 3. NATIONAL CONSUMER CREDIT CORPORATIONS. 
(a) FEDERAL CHARTER.—In accordance with the 
provisions of ths Act, and regulations prescribed pursuant 
to this Act, the Comptroller shall charter qualified non-
depository creditors which shall be known as National 
Consumer Credit Corporations (hereinafter referred to as 
‘‘Credit Corporations’’) to offer financial products or serv-
ices described in subsection (f)(1). 
(b) APPLICATION REQUIRED.— 
(1) IN
GENERAL.—A qualified nondepository 
creditor that desires to obtain a Federal charter 
under this Act shall submit an application to the 
Comptroller at such time, in such manner, and ac-
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companied by such information as the Comptroller 
may require. 
(2) DEADLINE.—The Comptroller shall make a 
determination as to whether an application sub-
mitted under paragraph (1) is approved or denied 
expeditiously. 
(c) REQUIREMENTS.—In seeking a Federal charter 
under this Act, a qualified nondepository creditor shall 
meet the following requirements: 
(1) A business plan shall be established cov-
ering at least the initial 3-year period of operation 
as a commercially viable entity with its primary 
business activities being to serve the needs of under-
served consumers and small businesses and such 
plan shall— 
(A) identify the intended— 
(i) geographical market area; and 
(ii) location of its main office; 
(B) realistically forecast market demand, 
the intended customer base, competition, eco-
nomic conditions, financial projections, and 
business risks; 
(C) include a marketing plan that de-
scribes the types of financial products or serv-
ices such creditor intends to offer, how it will 
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market them, and how such products or serv-
ices are expected to be affordable for under-
served consumers and small businesses and 
commercially viable for the creditor; and 
(D) contain an acceptable plan for ensur-
ing compliance with all applicable laws and reg-
ulations, and for promptly addressing com-
plaints from such consumers and businesses. 
(2) A competent and experienced management 
team of good moral character with expertise in and 
a commitment to serving the credit needs of under-
served consumers and awareness and understanding 
of applicable legal requirements shall be established. 
(3) Adequate capital structure relative to the 
operational and financial assumptions and business 
plans of the qualified nondepository creditor, includ-
ing the cost of utilizing advanced technology and in-
formation management systems for its operating and 
compliance needs, shall be established. 
(4) No qualified nondepository creditor shall be 
directly or indirectly owned or controlled by any per-
son unless— 
(A) the person is an individual, a Federal- 
or State-chartered depository institution, a 
bank holding company (as defined in section 
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2(a) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1841(a))), a savings and loan 
holding 
company 
(as 
defined 
in 
section 
10(a)(1)(D) of the Home Owners’ Loan Act 
(12 U.S.C. 1467a(a)(1)(D))), or a nonprofit 
corporation; or 
(B) the primary business activity of the 
person involves— 
(i) providing financial products or 
services to consumers; or 
(ii) owning or controlling persons 
whose primary business activity is pro-
viding financial products or services to con-
sumers. 
(5) Any other requirements provided for under 
this Act or in regulations prescribed by the Comp-
troller consistent with the purposes of this Act. 
(d) AUTHORITY OF NATIONAL CONSUMER CREDIT 
CORPORATIONS.—Upon receiving a Federal charter pur-
suant to subsection (a), a Credit Corporation shall be-
come, as from the date of the execution of its charter, a 
body corporate, and, as such, a National Consumer Credit 
Corporation, and in the name designated in the charter 
it is authorized to— 
(1) adopt and use a corporate seal; 
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(2) have succession from the date its charter is 
issued until such time as it be dissolved by the act 
of its shareholders owning two-thirds of its stock, or 
until its charter is revoked by the Comptroller, or 
until terminated by an Act of Congress, or until its 
affairs are placed in the hands of a receiver and fi-
nally wound up by the receiver in accordance with 
title 11, United States Code, or other applicable law; 
(3) borrow money, issue stock, and enter into 
contracts; 
(4) sue and be sued and complain and defend, 
in any court of law and equity of competent jurisdic-
tion, as fully as natural persons; 
(5) elect or appoint directors, and by its board 
of directors to appoint a president, vice president, 
and other officers, define their duties, require bonds 
of them and fix the penalty thereof, dismiss such of-
ficers or any of them at pleasure, and appoint others 
to fill their places; 
(6) prescribe, by its board of directors, bylaws 
not inconsistent with law, regulating the manner in 
which its stock shall be transferred, its directors 
elected or appointed, its officers appointed, its prop-
erty transferred, its general business conducted, and 
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the privileges granted to it by law exercised and en-
joyed; 
(7) hire employees and consultants and fix their 
compensation, define their duties, and give such per-
sons appropriate authority to carry on its business 
operations; 
(8) enter into joint ventures and other business 
partnerships with other Credit Corporations, deposi-
tory institutions, State-chartered or licensed non-
depository creditors, third-party service providers 
and vendors, and other parties to promote or facili-
tate providing commercially viable financial products 
or services to underserved consumers and small busi-
nesses; 
(9) contribute to community funds, or to chari-
table, philanthropic, or benevolent instrumentalities 
conducive to public welfare, such sums as its board 
of directors may deem expedient and in the interests 
of the Credit Corporation; 
(10) invest in, or buy or lease, real estate or 
tangible personal property, including vehicles, equip-
ment, furnishings and furniture, to be used by the 
Credit Corporation in conducting business related 
operations authorized under this Act; 
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(11) conduct its business operations through 
the Internet and such locations as its board of direc-
tors or duly authorized officers may determine are 
appropriate for providing financial products or serv-
ices to consumers, including underserved consumers 
and small businesses in accordance with the provi-
sions of this Act and regulations prescribed pursuant 
to this Act; 
(12) exercise by its board of directors or duly 
authorized officers or agents, subject to law, all such 
incidental, implied, or reasonably necessary powers 
as may be appropriate to carry on its corporate op-
erations and the business of providing commercially 
viable financial products or services to consumers, 
including underserved consumers and small busi-
nesses in accordance with the provisions of this Act 
and regulations prescribed pursuant to this Act; 
(13) be affiliated with, or owned by, an insured 
depository institution, nondepository creditor, non-
profit organization, or other qualified entities; 
(14) acquire or merge with other Credit Cor-
porations; and 
(15) exercise such other powers as may be pro-
vided for through regulations prescribed by the 
Comptroller pursuant to the provisions of this Act. 
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(e) DUTIES AND RESPONSIBILITIES.— 
(1) COMPTROLLER.—The Comptroller shall— 
(A) ensure that, to the extent reasonably 
possible, Credit Corporations primarily focus 
their business operations on providing under-
served consumers a variety of affordable finan-
cial products or services that are commercially 
viable to such Corporations, including certain 
products or services that contain features to fa-
cilitate personal savings and enhance the credit 
record of such consumers; 
(B) encourage and facilitate— 
(i) innovation with respect to the fi-
nancial products or services offered to un-
derserved consumers; and 
(ii) joint ventures and other business 
partnerships among Credit Corporations, 
insured depository institutions, other non-
depository creditors, third-party service 
providers and vendors, and nonprofit orga-
nizations in order to ensure greater credit 
access for underserved consumers and 
small businesses; 
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(C) provide, through regulations, details on 
how Credit Corporations should be organized, 
incorporated, and operated; 
(D) conduct examination and supervisory 
activities of Credit Corporations to— 
(i) access their internal controls and 
management ability; 
(ii) evaluate their financial condition 
and risk profile; 
(iii) determine if they are meeting the 
needs of underserved consumers and small 
businesses; and 
(iv) monitor their compliance with this 
Act and all other applicable laws and regu-
lations, and identify areas in which correc-
tive action is needed; and 
(E) consult and coordinate, as appropriate, 
with other Federal and State regulatory agen-
cies, including State bank supervisors, to pro-
mote consistent regulatory treatment of con-
sumer and small business financial products 
and services and to help ensure that the agen-
cies’ supervisory activities, including examina-
tion schedules, of Credit Corporations and af-
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filiated companies are conducted in a coordi-
nated and efficient manner. 
(2) NATIONAL
CONSUMER
CREDIT
CORPORA-
TIONS.—Each Credit Corporation shall— 
(A) make financial education information 
adopted by the Comptroller available to each 
consumer to whom it offers a financial product 
or service, including information on how a con-
sumer may obtain financial counseling services, 
the benefits of following a regular personal sav-
ings program, and how consumers can improve 
their credit ratings; 
(B) comply with all applicable Federal laws 
and regulations, including Federal consumer fi-
nancial protection law requirements; 
(C) provide account access to its cus-
tomers, either through a toll-free telephone 
number, the Internet, or both, during its nor-
mal business hours; 
(D) along with other creditors otherwise 
subject to the Truth in Lending Act (15 U.S.C. 
1601 et seq.), provide, in accordance with regu-
lations prescribed pursuant to this Act, all con-
sumers who are extended credit by the Corpora-
tion or other creditors which has a repayment 
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term of 1-year or less with a clear and con-
spicuous statement in the loan agreement that 
discloses the true cost of the loan, including all 
interest, fees and other loan related charges, as 
a dollar amount and as a percentage of the 
principal amount of the loan in lieu of the an-
nual percentage rate disclosure that otherwise 
would be required under the Truth in Lending 
Act or regulations; 
(E) report to the Comptroller such data as 
the Comptroller may require regarding its ac-
tivities, including the types of financial products 
or services provided to underserved consumers 
and small businesses and the geographic market 
areas where such services are offered, and data 
demonstrating that its business activities are fo-
cused primarily on serving underserved con-
sumers and small businesses as required by this 
Act, provided that adequate safeguards shall be 
adopted by the Comptroller to ensure appro-
priate privacy and confidentiality protections 
with respect to individually identifiable personal 
data and proprietary corporate data; 
(F) offer— 
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(i) an underserved consumer who is 
unable to repay an extension of credit by 
such Corporation that has a loan repay-
ment term of less than 120 days, an ex-
tended repayment plan, at no cost to the 
consumer, at least once in a 12-month pe-
riod; and 
(ii) to the extent reasonably possible, 
certain financial products or services that 
contain features to facilitate personal sav-
ings and that could help an underserved 
consumer enhance their credit record if the 
consumer fully complies with the terms 
and conditions of such products or serv-
ices; and 
(G) not— 
(i) accept consumer or commercial de-
posits; 
(ii) make commercial loans, except to 
the extent allowed by the provisions of this 
Act, and regulations prescribed pursuant 
to this Act, with respect to small busi-
nesses; 
(iii) make a consumer loan with a 
term of 30 days or less; or 
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(iv) intentionally extend credit to a 
consumer— 
(I) unless the Credit Corporation 
has a reasonable basis for believing 
that the consumer can repay the cred-
it extension; 
(II) if the maximum principal 
amount of the credit outstanding from 
all financial products or services au-
thorized by the Credit Corporation to 
such consumer, in the case of an un-
secured credit transaction, exceeds 
$5,000, or in the case of a secured 
credit transaction, $25,000, unless a 
higher amount is authorized by regu-
lations prescribed by the Comptroller; 
or 
(III) if the loan terms include a 
prepayment penalty. 
(f) NATIONAL CONSUMER CREDIT CORPORATION 
BUSINESS ACTIVITIES AND PRODUCT APPROVAL.— 
(1) BUSINESS ACTIVITIES.— 
(A) IN GENERAL.—The primary business 
activities of a Credit Corporation shall be to 
offer financial products or services that are ap-
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proved by the Comptroller pursuant to this sub-
section to underserved consumers and small 
businesses. 
(B) LIMITATION
ON
CREDIT
EXTENSION 
TO SMALL BUSINESSES.—A Credit Corporation 
may not extend credit to a small business in ex-
cess of $25,000. 
(2) PRODUCT APPROVAL.— 
(A) IN GENERAL.—A Credit Corporation 
shall submit a detailed description of any finan-
cial product or service that the Credit Corpora-
tion plans to offer to underserved consumers or 
small businesses, including an explanation of 
how the product or service will help meet the 
credit and financial needs of underserved con-
sumers or small businesses and be commercially 
viable for the Credit Corporation, and such 
product or service shall be reviewed and ap-
proved by the Comptroller or deemed approved 
pursuant to subparagraph (C) prior to such 
product or service becoming available in the 
marketplace for such consumers and businesses. 
(B) REGULATIONS.—The Comptroller shall 
prescribe regulations containing standards and 
procedures, consistent with the provisions of 
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this Act, with respect to financial product ap-
proval, conditional approval, or disapproval, and 
establish a method for expedited review of the 
submissions under subparagraph (A), provided 
that such regulations shall not provide for or 
authorize the disapproval or conditional ap-
proval of a financial product or service unless 
the Comptroller determines, based on a fair and 
reasonable determination of the facts and cir-
cumstances regarding a proposed financial 
product or service, that offering the proposed 
such product or service will significantly harm 
the interests of underserved consumers or small 
businesses. 
(C) TIMING.—If the Comptroller has not 
advised a Credit Corporation of its approval, 
conditional approval, or disapproval of a prod-
uct or service within 45 business days after a 
Credit Corporation makes a submission under 
subparagraph (A), the financial product or serv-
ice shall be deemed approved by the Comp-
troller and a Credit Corporation may offer it to 
underserved consumers and small businesses, 
provided that after a Credit Corporation has 
begun offering such a product or service, the 
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Comptroller, pursuant to standards and proce-
dures set forth in regulations established pursu-
ant to subparagraph (B), may require a Credit 
Corporation to cease offering or modify such a 
product or service in order to ensure that such 
product will not significantly harm the interests 
of underserved consumers or small businesses. 
(D) PRODUCTS
OR
SERVICES
APPROVED 
BY THE COMPTROLLER.—Financial products or 
services approved by the Comptroller pursuant 
to this subsection for underserved consumers 
and small businesses may also be offered to 
other consumers and small businesses. 
(E) TYPES OF PRODUCTS OR SERVICES.— 
The Comptroller shall make an effort to ap-
prove a broad range of financial products or 
services, including some products or services 
that contain features to facilitate savings and 
credit building by underserved consumers. 
(F) RULE OF CONSTRUCTION.—Nothing in 
this Act provides the Comptroller with the au-
thority to regulate financial products or services 
that a Credit Corporation does not provide or 
offer to underserved consumers or small busi-
nesses, and that are provided or offered by an 
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