Title: ASSURE Act of 2018
Policy area: Finance and Financial Sector

Summary:
Annuity Safety and Security Under Reasonable Enforcement Act of 2018 or the ASSURE Act of 2018
This bill (1) requires additional disclosures regarding financial products that use federal and military pension benefits as consideration, (2) limits the maximum interest rates on these financial products, (3) provides for a private right of action with respect to prohibited assignments of specified benefits for veterans and military retirees, and (4) otherwise revises provisions related to these benefits and products.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7299 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 7299

To provide for additional protections and disclosures to consumers when 
 financial products or services are related to the consumers' military 
              or Federal pensions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 13, 2018

Mr. Cartwright introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committees on 
Veterans' Affairs, Armed Services, and Oversight and Government Reform, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
To provide for additional protections and disclosures to consumers when 
 financial products or services are related to the consumers' military 
              or Federal pensions, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Annuity Safety and Security Under 
Reasonable Enforcement Act of 2018'' or the ``ASSURE Act of 2018''.

SEC. 2. CONSIDERATION OF FEDERAL AND MILITARY PENSIONS IN EXTENSIONS OF 
              CREDIT.

    The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended--
            (1) in section 104(3), by inserting after ``other than'' 
        the following: ``payments described under section 126(a) and'';
            (2) by inserting after section 125 the following:
``Sec. 126. Payments in consideration of Federal and military pensions
    ``(a) Disclosure.--The Bureau shall issue regulations requiring any 
payment to a covered individual, whether or not such payment is an 
extension of credit, that diminishes the covered individual's ability 
to control the payments from their Federal or military pension or 
Thrift Savings Plan in any way, to be treated as an extension of credit 
for purposes of the disclosures required under this title.
    ``(b) Interest Rate Cap.--With respect to a payment to a covered 
individual described under subsection (a)--
            ``(1) if such payment is an extension of consumer credit, a 
        creditor may not impose an annual percentage rate of interest 
        greater than the Federal funds rate plus 6 percent; and
            ``(2) if such payment is not an extension of consumer 
        credit, the Bureau shall issue regulations requiring that the 
        aggregate amount of cash and property paid in exchange for such 
        payment may not exceed an amount that is equivalent to the 
        interest rate described under paragraph (1).
    ``(c) Definitions.--For purposes of this section:
            ``(1) Covered individual.--The term `covered individual' 
        means--
                    ``(A) an individual who is entitled to payments 
                under a Federal or military pension; and
                    ``(B) an individual who has not less than 5 years 
                of creditable service under section 8332 or 8411 of 
                title 5, United States Code, in a position in the civil 
                service, as defined in section 2101 of title 5, United 
                States Code.
            ``(2) Federal or military pension.--The term `Federal or 
        military pension' means--
                    ``(A) an annuity described under section 8345 or 
                8465 of title 5, United States Code;
                    ``(B) retired or retainer pay payable to a member 
                of the uniformed services (as that term is defined in 
                section 101(a)(5) of title 10, United States Code);
                    ``(C) compensation payable under chapter 11 of 
                title 38, United States Code;
                    ``(D) dependency and indemnity compensation payable 
                under chapter 13 of title 38, United States Code;
                    ``(E) pension payable under chapter 15 of title 38, 
                United States Code; and
                    ``(F) any other benefit described in section 
                5301(a) of title 38, United States Code.
            ``(3) Federal funds rate.--For purposes of this section, 
        the term `Federal funds rate' means the Federal funds rate 
        published in the Federal Reserve Statistical Release on 
        selected interest rates (daily or weekly), and commonly 
        referred to as the H.15 release (or any successor 
        publication).''; and
            (3) in the table of contents for chapter 2 of such Act, by 
        inserting after the item relating to section 125 the following:

``126. Payments in consideration of Federal and military pensions.''.

SEC. 3. CLARIFICATION OF ASSIGNMENTS; PRIVATE RIGHTS OF ACTIONS.

    (a) Veterans Benefits.--Section 5301 of title 38, United States 
Code, is amended by adding at the end the following:
    ``(f) Private Right of Action.--
            ``(1) In general.--A benefit recipient may bring an action 
        against a pension assignee in the appropriate Federal or State 
        court and recover--
                    ``(A) three times the damages suffered due to the 
                assignment made in violation of this section;
                    ``(B) court costs; and
                    ``(C) reasonable attorneys' fees and expenses.
            ``(2) Definitions.--For purposes of this subsection:
                    ``(A) Benefit recipient.--The term `benefit 
                recipient' means a person with respect to which 
                payments of benefits described under this section are 
                due or are to become due.
                    ``(B) Pension assignee.--With respect to a benefit 
                recipient, the term `pension assignee' means a person 
                who has been assigned the benefits of the benefit 
                recipient in violation of this section.''.
    (b) Military Retired Pay.--Section 701 of title 37, United States 
Code, is amended--
            (1) in subsection (a), by striking ``Under regulations'' 
        and inserting ``Subject to subsection (f) and under 
        regulations''; and
            (2) by adding at the end the following new subsection:
    ``(f)(1) Except as provided in paragraph (2), for purposes of 
subsections (a) and (c), in any case where a member is entitled to 
retired or retainer pay and enters into an agreement with another 
person under which agreement such other person acquires for 
consideration the right to receive payment of such retired or retainer 
pay, whether by payment from the member to such other person, deposit 
into an account from which such other person may make withdrawals, or 
otherwise, such agreement shall be deemed to be an assignment and is 
void. Any agreement or arrangement for collateral for security for an 
agreement that is void under this paragraph is also void.
    ``(2) Paragraph (1) does not apply to a right to receive payment of 
retired or retainer pay in compliance with a court order as provided 
for in section 1408 of title 10 or as otherwise expressly authorized by 
law.
    ``(3)(A) A retired pay recipient may bring an action against a 
retired pay assignee in the appropriate Federal or State court and 
recover--
            ``(i) three times the damages suffered due to the 
        assignment of retired pay made in violation of this subsection;
            ``(ii) court costs; and
            ``(iii) reasonable attorneys' fees and expenses.
    ``(B) In this paragraph:
            ``(i) The term `retired pay recipient' means a person with 
        respect to which retired or retainer pay covered by this 
        subsection is due or is to become due.
            ``(ii) The term `retired pay assignee', with respect to a 
        retired pay recipient, means a person who has been assigned or 
        allotted the retired or retainer pay of the retired pay 
        recipient in violation of this subsection.''.
    (c) CSRS Annuities.--Section 8345(h) of title 5, United States 
Code, is amended to read as follows:
    ``(h) Non-Assignment of Annuities.--
            ``(1) In general.--An individual entitled to an annuity 
        from the Fund may not make allotments or assignments of amounts 
        from such annuity.
            ``(2) Construction.--For purposes of this subsection--
                    ``(A) in any case where an individual entitled to 
                an annuity from the Fund enters into an agreement with 
                another person under which agreement such other person 
                acquires for consideration the right to receive payment 
                of such annuity, whether by payment from the individual 
                to such other person, deposit into an account from 
                which such other person may make withdrawals, or 
                otherwise, such agreement shall be deemed to be an 
                assignment and is prohibited; and
                    ``(B) any agreement or arrangement for collateral 
                for security for an agreement that is prohibited under 
                subparagraph (A) is also prohibited.
            ``(3) Exception.--Paragraphs (1) and (2) shall not apply to 
        amounts used to pay dues to unions or other employee 
        organizations.
            ``(4) Private right of action.--
                    ``(A) In general.--An annuity recipient may bring 
                an action against an annuity assignee in the 
                appropriate Federal or State court and recover--
                            ``(i) three times the damages suffered due 
                        to the assignment made in violation of this 
                        subsection or the regulations issued pursuant 
                        to this subsection;
                            ``(ii) court costs; and
                            ``(iii) reasonable attorneys' fees and 
                        expenses.
                    ``(B) Definitions.--For purposes of this paragraph:
                            ``(i) Annuity assignee.--With respect to an 
                        annuity recipient, the term `annuity assignee' 
                        means a person who has been assigned or 
                        allotted all or part of an annuity from the 
                        Fund in violation of this subsection or the 
                        regulations issued pursuant to this subsection.
                            ``(ii) Annuity recipient.--The term 
                        `annuity recipient' means an individual 
                        entitled to an annuity from the Fund.''.
    (d) FERS Annuities.--Section 8465(b) of title 5, United States 
Code, is amended to read as follows:
    ``(b) Non-Assignment of Annuities.--
            ``(1) In general.--An individual entitled to an annuity 
        from the Fund may not make allotments or assignments of amounts 
        from such annuity.
            ``(2) Construction.--For purposes of this subsection--
                    ``(A) in any case where an individual entitled to 
                an annuity from the Fund enters into an agreement with 
                another person under which agreement such other person 
                acquires for consideration the right to receive payment 
                of such annuity, whether by payment from the individual 
                to such other person, deposit into an account from 
                which such other person may make withdrawals, or 
                otherwise, such agreement shall be deemed to be an 
                assignment and is prohibited; and
                    ``(B) any agreement or arrangement for collateral 
                for security for an agreement that is prohibited under 
                subparagraph (A) is also prohibited.
            ``(3) Exception.--Paragraphs (1) and (2) shall not apply to 
        amounts used to pay dues to unions or other employee 
        organizations.
            ``(4) Private right of action.--
                    ``(A) In general.--An annuity recipient may bring 
                an action against an annuity assignee in the 
                appropriate Federal or State court and recover--
                            ``(i) three times the damages suffered due 
                        to the assignment made in violation of this 
                        subsection or the regulations issued pursuant 
                        to this subsection;
                            ``(ii) court costs; and
                            ``(iii) reasonable attorneys' fees and 
                        expenses.
                    ``(B) Definitions.--For purposes of this paragraph:
                            ``(i) Annuity assignee.--With respect to an 
                        annuity recipient, the term `annuity assignee' 
                        means a person who has been assigned or 
                        allotted all or part of an annuity from the 
                        Fund in violation of this subsection or the 
                        regulations issued pursuant to this subsection.
                            ``(ii) Annuity recipient.--The term 
                        `annuity recipient' means an individual 
                        entitled to an annuity from the Fund.''.

SEC. 4. BUREAU OF CONSUMER FINANCIAL PROTECTION PROVISIONS.

    (a) Regulation of Federal or Military Pension-Related Products.--
Section 1032 of the Consumer Financial Protection Act of 2010 (12 
U.S.C. 5532) is amended by adding at the end the following:
    ``(g) Regulation of Federal or Military Pension-Related Products.--
            ``(1) In general.--The Bureau shall issue regulations to 
        require a person offering a Federal or military pension-related 
        product to provide additional disclosures when advertising or 
        selling such product, sufficient to allow consumers to 
        understand--
                    ``(A) how their pension relates to the product; and
                    ``(B) whether any insured depository institution 
                also offers the product.
            ``(2) Definitions defined.--For purposes of this 
        subsection:
                    ``(A) Federal or military pension.--The term 
                `Federal or military pension' means--
                            ``(i) a benefit described under section 
                        5301(a) of title 38, United States Code;
                            ``(ii) retired pay to an enlisted member of 
                        the Army, Navy, Air Force, Marine Corps, or 
                        Coast Guard;
                            ``(iii) an annuity described under section 
                        8345 or 8465 of title 5, United States Code;
                            ``(iv) compensation under chapter 11 of 
                        title 38, United States Code; and
                            ``(v) dependency and indemnity compensation 
                        under chapter 13 of title 38, United States 
                        Code.
                    ``(B) Federal or military pension-related 
                product.--The term `Federal or military pension-related 
                product' means a financial product or service related 
                to a Federal or military pension, including any 
                extension of credit if the creditor, when determining a 
                consumer's ability to repay the extension of credit, 
                takes the pension into consideration.''.
    (b) Study by the Bureau.--
            (1) In general.--The Bureau of Consumer Financial 
        Protection shall carry out a study of financial products and 
        services that target military retirees and Federal employee 
        retirees.
            (2) Report.--Not later than the end of the 3-month period 
        beginning on the date of the enactment of this Act, the Bureau 
        shall issue a report to the Congress containing all findings 
        and determinations made in carrying out the study required 
        under this subsection.
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