Small Business Lending Fairness Act

Bill: 115-s-3717
Sponsor: full_name: Sen. Brown, Sherrod [D-OH]
Introduced: 2018-12-06
Policy area: Finance and Financial Sector
Subjects: Civil actions and liability

Consumer credit

Due process and equal protection

Law
Latest action: action_date: 2018-12-06
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2018-12-06
action_desc: Introduced in Senate
text: <p><b>Small Business Lending Fairness Act </b></p> <p>This bill prohibits a creditor from accepting a borrower's waiver of the right to notice and opportunity to be heard in a legal proceeding regarding the debt. </p>

tv_txt: II 115th CONGRESS 2d Session S. 3717 IN THE SENATE OF THE UNITED STATES December 6, 2018 Mr. Brown (for himself and Mr. Rubio ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Truth in Lending Act to prohibit certain unfair credit practices, and for other purposes.

1. Short title This Act may be cited as the Small Business Lending Fairness Act . 2. Credit 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 in or affecting commerce, as defined in section 4 of the Federal Trade Commission Act ( 15 U.S.C. 44 ), no creditor may directly or indirectly take or receive from a borrower an obligation that constitutes or contains a cognovit or confession of judgment (for purposes other than executory process in the State of Louisiana), 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) Technical and conforming amendment Section 135 of the Truth in Lending Act ( 15 U.S.C. 1645 ) is amended by striking and 134 and inserting 134, and 140B .