I 
109TH CONGRESS 
1ST SESSION 
H. R. 97 
To establish requirements with respect to the terms of consumer credit ex-
tended by a creditor to a servicemember or the dependent of a 
servicemember, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 4, 2005 
Mr. GRAVES introduced the following bill; which was referred to the 
Committee on Veterans’ Affairs 
A BILL 
To establish requirements with respect to the terms of con-
sumer credit extended by a creditor to a servicemember 
or the dependent of a servicemember, and for other pur-
poses. 
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 ‘‘Servicemembers Anti- 
Predatory Lending Protection Act’’.
SEC. 2. TERMS OF CONSUMER CREDIT EXTENDED TO 
SERVICEMEMBER OR SERVICEMEMBER’S DE-
PENDENT. 
(a) TERMS OF CONSUMER CREDIT.—Title II of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 521 et 
seq.) is amended by adding at the end the following new 
section: 
‘‘SEC. 208. TERMS OF CONSUMER CREDIT. 
‘‘(a) INTEREST.—A creditor who extends consumer 
credit to a servicemember or a servicemember’s dependent 
shall 
not 
require 
the 
servicemember 
or 
the 
servicemember’s dependent to pay interest with respect to 
the extension of such credit, except as— 
‘‘(1) agreed to under the terms of the credit 
agreement or promissory note; 
‘‘(2) authorized by the applicable State law; and 
‘‘(3) not specifically prohibited by this section. 
‘‘(b) ANNUAL PERCENTAGE RATE.—A creditor de-
scribed in subsection (a) shall not impose an annual per-
centage rate greater than 36 percent with respect to the 
consumer credit extended to a servicemember or a 
servicemember’s dependent. 
‘‘(c) MANDATORY LOAN DISCLOSURES.— 
‘‘(1) INFORMATION
REQUIRED.—With respect 
to 
any 
extension 
of 
consumer 
credit 
to 
a 
servicemember or a servicemember’s dependent, a
creditor shall provide to the servicemember or the 
servicemember’s dependent the following information 
in writing at or before the issuance of the credit: 
‘‘(A) A statement of the annual percentage 
rate applicable to the extension of credit. 
‘‘(B) Any disclosures required under the 
Truth in Lending Act (15 U.S.C. 1601 et seq.). 
‘‘(C) A clear description of the payment 
obligations 
of 
the 
servicemember 
or 
the 
servicemember’s dependent, as applicable. 
‘‘(2) TERMS.—Such disclosures shall be pre-
sented in accordance with terms prescribed by the 
regulations issued by the Board of Governors of the 
Federal Reserve System to implement the Truth in 
Lending Act (15 U.S.C. 1601 et seq.). 
‘‘(d) LIMITATION.—A creditor described in sub-
section (a) shall not automatically renew, repay, refinance, 
or consolidate with the proceeds of other credit extended 
by the same creditor any consumer credit extended to a 
servicemember or a servicemember’s dependent without— 
‘‘(1) executing new loan documentation signed 
by the servicemember or the servicemember’s de-
pendent, as applicable; and
‘‘(2) providing the loan disclosures described in 
subsection 
(c) 
to 
the 
servicemember 
or 
the 
servicemember’s dependent. 
‘‘(e) PREEMPTION.—Except as provided in subsection 
(f)(2), this section preempts any State or Federal law, 
rule, or regulation, including any State usury law, to the 
extent that such laws, rules, or regulations are incon-
sistent with this section, except that this section shall not 
preempt any such law, rule, or regulation that provides 
additional 
protection 
to 
a 
servicemember 
or 
a 
servicemember’s dependent. 
‘‘(f) PENALTIES.— 
‘‘(1) MISDEMEANOR.—Any creditor who know-
ingly violates this section shall be fined as provided 
in title 18, United States Code, or imprisoned for 
not more than one year, or both. 
‘‘(2) PRESERVATION OF OTHER REMEDIES.— 
The remedies and rights provided under this section 
are in addition to and do not preclude any remedy 
otherwise available under law to the person claiming 
relief under this section, including any award for 
consequential and punitive damages. 
‘‘(g) DEFINITION.—For purposes of this section, the 
term ‘interest’ includes service charges, renewal charges,
fees, or any other charges (except bona fide insurance) 
with respect to the extension of consumer credit.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
of the Servicemembers Civil Relief Act (50 U.S.C. App. 
501) is amended by inserting after the item relating to 
section 207 the following new item: 
‘‘Sec. 208. Terms of consumer credit.’’. 
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