(hereinafter in this Act referred to as ‘‘FFSCCs’’); 
and 
(2) have the responsibility to ensure that credit 
alternatives are available to the underbanked. 
(b) ELIGIBILITY.—The Comptroller of the Currency 
may not issue an FFSCC charter to a company unless 
the company satisfies the following requirements, as rea-
sonably determined by the Comptroller of the Currency: 
(1) The company has a demonstrated history of 
experience in providing underbanked persons with a 
financial product from within the following services: 
(A) Credit extended to consumers or, in an 
amount less than $10,000, to small businesses. 
(B) The issuing of reloadable stored value 
cards to consumers or small businesses. 
(C) Ancillary financial services extended to 
consumers 
or 
small 
businesses, 
including 
issuing money orders, sending and receiving 
wire transfers, check cashing services, bill pay-
ment services, and tax preparation services. 
(D) Such other short-term consumer credit 
services as the Comptroller of the Currency de-
termines appropriate. 
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(2)(A) No person who is a director, officer, 
partner, agent, sole proprietor, owner, or controlling 
person of the company— 
(i) has been convicted of a felony within 
ten years of the charter application date; or 
(ii) is associated with any person who has 
been convicted of a felony within ten years of 
the charter application date. 
(B) For purposes of subparagraph (A)— 
(i) the term ‘‘controlling person’’ means a 
person owning or controlling 10 percent or 
more of the total outstanding ownership of the 
company; and 
(ii) with respect to two people, the term 
‘‘associated with’’ means one person— 
(I) is a partner, officer, or director (or 
any person occupying a similar status or 
performing similar functions) of the other 
person; or 
(II) directly or indirectly controls, is 
controlled by, or is under common control 
with the other person. 
(3) The company submits a business plan or 
operating plan that adequately addresses the appro-
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priate statutory and policy considerations. Such plan 
shall— 
(A) reflect sound financial principles and 
demonstrate realistic assessments of risk in 
light of economic and competitive conditions in 
the market for serving underbanked and 
unbanked populations; 
(B) include information sufficient to per-
mit the Comptroller of the Currency to evaluate 
the overall management ability of the company, 
especially the ability to provide financial serv-
ices to the underbanked and unbanked popu-
lation; and 
(C) demonstrate that the company is 
aware of, and understands, Federal and State 
consumer credit laws and sound consumer cred-
it operations and practices in the context of 
serving the needs of the underbanked and 
unbanked populations. 
(4) The company has senior management offi-
cials who are familiar with applicable Federal and 
State consumer credit laws and regulations, and the 
credit needs of underbanked and unbanked con-
sumers. 
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(5) The company has competent management, 
with ability and experience relevant to the types of 
services to be provided, especially the ability and ex-
perience to design and provide financial services to 
the underbanked and unbanked consumer popu-
lation. 
(c) REQUIREMENTS PLACED ON FFSCCS.— 
(1) CREDIT DISCLOSURES.— 
(A) SHORT-TERM
CREDIT.—With respect 
to an extension of short-term credit by an 
FFSCC, the FFSCC shall provide the person to 
whom credit is being extended a clear and 
prominent statement in the loan agreement that 
states the true cost of the loan in terms of an 
actual finance charge per dollar of credit ex-
tended to such person instead of the annual 
percentage rate disclosure required under the 
Truth in Lending Act. 
(B) LONG-TERM CREDIT.—With respect to 
an extension of long-term credit by an FFSCC, 
the FFSCC shall provide the person to whom 
credit is being extended a disclosure of the fi-
nance charge to be paid by the person, ex-
pressed as an ‘‘annual percentage rate’’, using 
that term. 
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(2) ACCOUNT
ACCESS.—Each FFSCC shall 
provide continuous account access to the customers 
of the FFSCC, either through a toll-free telephone 
number, the Internet, or both. 
(3) FINANCIAL
LITERACY
PROGRAMS.—Each 
FFSCC shall implement a financial literacy pro-
gram, which shall include— 
(A) making financial literacy materials 
available to its customers; and 
(B) assisting customers in building and 
improving their credit scores. 
(4) FINANCIAL
PRODUCTS
OFFERED.—Each 
FFSCC shall provide to underbanked persons at 
least three financial products from within the serv-
ices listed under the subparagraphs of subsection 
(b)(1). 
(5) 
ADDITIONAL
REQUIREMENTS.—Each 
FFSCC shall comply with the following: 
(A) Have a primary mission of providing a 
comprehensive array of financial services to the 
underbanked, unbanked, and consumers with 
low credit scores. 
(B) Serve as a vehicle for providing access 
to credit products predominately to unbanked 
or underbanked consumers. 
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(C) File articles of association, articles of 
incorporation, or other appropriate organiza-
tional documents with the Comptroller of the 
Currency. 
(D) Submit to the Comptroller of the Cur-
rency for approval a business plan which, 
among other things, provides in reasonable de-
tail evidence of the knowledge, understanding, 
and experience of the institution and senior 
management of the unique challenges that 
unbanked and underbanked individuals face 
with respect to access to financial credit. 
(d) FFSCC POWERS.—Subject to such regulations as 
the Comptroller of the Currency may issue, in addition 
to general corporate powers, an FFSCC shall have the au-
thority to provide any financial products authorized by the 
Comptroller of the Currency under section 4(2). 
(e) PENALTY.—Whoever knowingly violates any pro-
vision of this section, or any regulation issued pursuant 
to this section, shall be fined not more than $20,000 for 
each day such violation continues or imprisoned for not 
more than 3 years, or both. The Comptroller of the Cur-
rency may authorize any State attorney general to enforce 
violations of this Act, or regulations issued pursuant to 
this Act. 
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(f) FFSCC FEE.—All FFSCCs shall pay an annual 
fee to the Comptroller of the Currency in an amount that 
the Comptroller of the Currency determines is sufficient, 
in the aggregate, to offset the cost to the Comptroller of 
the Currency of carrying out the provisions of this section. 
(g) PREEMPTION OF STATE LAW.—A law of a State 
or political subdivision thereof shall be preempted if the 
application of such law would have a discriminatory effect 
on a company because such company is chartered as an 
FFSCC. 
(h) MODEL FORMS.—The Comptroller of the Cur-
rency shall draft approved, model product and disclosure 
forms that may be utilized by FFSCCs with any approved 
credit products or services offered by an FFSCC. 
SEC. 4. RATES AND TERMS STUDY; DEVELOPMENT OF FI-
NANCIAL PRODUCTS. 
The Comptroller of the Currency shall— 
(1) conduct a study on rates and terms used in 
the extension of credit; and 
(2) develop a suite of financial products that 
FFSCCs may offer to underbanked persons, that 
will— 
(A) contain transparent and full disclosure 
of all fees and terms related to such products; 
and 
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(B) be economically viable for FFSCCs to 
offer to consumers. 
SEC. 5. DEFINITIONS. 
For purposes of this Act: 
(1) COMPANY DEFINED.—For purposes of this 
subsection, the term ‘‘company’’ shall include— 
(A) the entity applying for an FFSCC 
charter; 
(B) any wholly owned subsidiary of such 
entity applying for an FFSCC charter; and 
(C) any other entity that is part of an af-
filiated control group with such entity applying 
for an FFSCC charter. 
(2) CONSUMER.—The term ‘‘consumer’’ shall 
have the meaning given such term under section 
103(h) of the Truth in Lending Act (15 U.S.C. 
1602(h)). 
(3) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ shall have the meaning given 
such term under section 101(7) of the Federal Cred-
it Union Act. 
(4) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ shall have the 
meaning given such term under section 3(c) of the 
Federal Deposit Insurance Act. 
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