Protecting Consumers' Access to Credit Act of 2016

Bill: 114-hr-5724
Sponsor: full_name: Rep. McHenry, Patrick T. [R-NC-10]
Introduced: 2016-07-11
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Credit and credit markets

Interest, dividends, interest rates
Latest action: action_date: 2016-07-11
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2016-07-11
action_desc: Introduced in House
text: <p><b>Protecting Consumers' Access to Credit Act of 2016</b></p> <p>This bill amends the Revised Statutes and the Federal Deposit Insurance Act to state that bank loans that are valid when made as to their maximum rate of interest in accordance with federal law shall remain valid with respect to that rate regardless of whether a bank has subsequently sold or assigned the loan to a third party. (Under these laws, interest may be charged on loans to customers at the greater of: (1) a rate not more than 1% above the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank for the district in which the lender is located, or (2) the highest rate allowed by the laws of the state in which the lender is located.)</p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5724 IN THE HOUSE OF REPRESENTATIVES July 11, 2016 Mr. McHenry introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Revised Statutes of the United States and the Federal Deposit Insurance Act to require the rate of interest on certain loans remain unchanged after transfer of the loan, and for other purposes.

1. Short title This Act may be cited as the Protecting Consumers’ Access to Credit Act of 2016 . 2. Rate of interest after transfer of loan (a) Amendment to the Revised Statutes Section 5197 of the Revised Statutes of the United States ( 12 U.S.C. 85 ) is amended by adding at the end the following new sentence: A loan that is valid when made as to its maximum rate of interest in accordance with this section shall remain valid with respect to such rate regardless of whether the loan is subsequently sold, assigned, or otherwise transferred to a third party. . (b) Amendment to the Federal Deposit Insurance Act Section 27(a) of the Federal Deposit Insurance Act ( 12 U.S.C. 1831d(a) ) is amended by adding at the end the following new sentence: A loan that is valid when made as to its maximum rate of interest in accordance with this section shall remain valid with respect to such rate regardless of whether the loan is subsequently sold, assigned, or otherwise transferred to a third party. .