Transparency in Military Lending Act of 2013

Bill: 113-hr-3691
Sponsor: full_name: Rep. Kildee, Daniel T. [D-MI-5]
Introduced: 2013-12-10
Policy area: Armed Forces and National Security
Subjects: Consumer affairs

Consumer credit

Financial services and investments

Government information and archives

Interest, dividends, interest rates

Military personnel and dependents
Latest action: action_date: 2014-01-24
text: Referred to the Subcommittee on Military Personnel.

Summaries:
action_date: 2013-12-10
action_desc: Introduced in House
text: <p>Transparency in Military Lending Act of 2013 - Requires a creditor to provide to a member of the Armed Forces on active regular, reserve, or National Guard duty or such member's dependent, with respect to any extension of consumer credit, and to obtain the member's or dependent's signed acknowledgement of: (1) a statement that the Department of Defense (DOD) and each service branch offers a variety of financial counseling services; (2) a statement that other, potentially lower interest rate loans may be available through other financial institutions and military relief societies; (3) contact information for the nearest DOD financial counseling office; and (4) the actual cost of the extension of credit when paid off at different points over time.</p> <p>Directs the Secretary of Defense to prepare a list of DOD financial counseling offices and make such list available to creditors and the public.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 3691 IN THE HOUSE OF REPRESENTATIVES December 10, 2013 Mr. Kildee introduced the following bill; which was referred to the Committee on Armed Services A BILL To amend title 10, United States Code, to require additional disclosures when lending to military members and their dependents, and for other purposes.

1. Short title This Act may be cited as the Transparency in Military Lending Act of 2013 . 2. Transparency in lending to military members and their dependents (a) Transparency and disclosures Section 987(c) of title 10, United States Code, is amended by adding at the end the following: (3) Additional disclosures (A) In general With respect to any extension of consumer credit described under paragraph (1), a creditor shall provide to the member or dependent each of the following pieces of information, orally and in writing, and the creditor may not issue the credit unless the member or dependent signs a separate acknowledgment next to each piece of information acknowledging that the member or dependent has read each such piece: (i) A statement that the Department of Defense and each service branch, offers a variety of financial counseling services. (ii) A statement that other, lower interest rate loans, including potentially 0 percent interest loans, may be available through other financial institutions and military relief societies. (iii) Contact information for the nearest Department of Defense financial counseling office. (iv) The actual cost of the extension of credit, prepared as an amortization table showing what the cost to the member or dependent will be if paid off at different points over time. (B) Format of disclosures The disclosures required under this paragraph shall be made on a single sheet of paper and be in a bold, 14-point font. (C) List of financial counseling offices The Secretary of Defense shall prepare a list of Department of Defense financial counseling offices, and make sure the list is available to creditors and the public. . (b) Transparency for payday loans and vehicle loans Solely for purposes of the disclosures required under section 987(c)(3) of title 10, United States Code, the Secretary of Defense shall apply the definitions of payday loans and vehicle title loans under section 232.3 of title 32, Code of Federal Regulations, as providing that the terms of such loans are 10 years or less.