IB 
Union Calendar No. 336 
116TH CONGRESS 
2D SESSION 
H. R. 3490 
[Report No. 116–417] 
To amend the Truth in Lending Act to prohibit certain unfair credit practices, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2019 
Ms. VELA´ZQUEZ (for herself, Mr. MARSHALL, and Mr. SCHNEIDER) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
MARCH 19, 2020 
Reported with an amendment; committed to the Committee of the Whole 
House on the State of the Union and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 25, 2019] 
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A BILL 
To amend the Truth in Lending Act to prohibit certain 
unfair credit practices, and for other purposes. 
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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 Business Lending 
Fairness Act’’. 
SEC. 2. OBLIGOR TRANSACTIONS. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lending 
Act (15 U.S.C. 1631 et seq.) is amended by adding at the 
end the following: 
‘‘§ 140B. Unfair credit practices 
‘‘(a) IN GENERAL.—In connection with the extension 
of credit or creation of debt in or affecting commerce, as 
defined in section 4 of the Federal Trade Commission Act 
(15 U.S.C. 44), including any advance of funds or sale or 
assignment of future income or receivables that may or may 
not be credit, no person may directly or indirectly take or 
receive from another person an obligation that constitutes 
or contains a cognovit or confession of judgment (for pur-
poses other than executory process in the State of Lou-
isiana), warrant of attorney, or other waiver of the right 
to notice and the opportunity to be heard in the event of 
suit or process thereon. 
‘‘(b) EXEMPTION.—The exemption in section 104(1) 
shall not apply to this section.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
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(1) Section 103 of the Truth in Lending Act (15 
U.S.C. 1602) is amended by adding at the end the fol-
lowing: 
‘‘(ff) The term ‘debt’ means any obligation of a person 
to pay to another person money— 
‘‘(1) regardless of whether such obligation is ab-
solute or contingent if the understanding between the 
parties is that any part of the money shall be or may 
be returned; 
‘‘(2) that includes the right of the person pro-
viding the money to an equitable remedy for breach 
of performance if the breach gives rise to a right to 
payment; and 
‘‘(3) regardless of whether the obligation or right 
to an equitable remedy described in paragraph (2) 
has been reduced to judgment, fixed, contingent, ma-
tured, unmatured, disputed, undisputed, secured, or 
unsecured.’’. 
(2) Section 130(a) of the Truth in Lending Act 
(15 U.S.C. 1640) is amended by striking ‘‘creditor’’ 
each place the term appears and inserting ‘‘person’’. 
(3) The table of sections in chapter 2 of the 
Truth in Lending Act (15 U.S.C. 1631 et seq.) is 
amended by adding at the end the following: 
‘‘140B. Unfair credit practices.’’. 
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Union Calendar No. 336 
116TH CONGRESS 
2D SESSION 
H. R. 3490 
[Report No. 116–417] 
A BILL 
To amend the Truth in Lending Act to prohibit 
certain unfair credit practices, and for other pur-
poses. 
MARCH 19, 2020 
Reported with an amendment; committed to the Com-
mittee of the Whole House on the State of the Union 
and ordered to be printed 
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22:39 Mar 19, 2020
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PO 00000
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