,i #aacth ,,congress #ast ,session ,h4 ,r4 #aeff ,,in ,,the ,,house ,,of ,,representatives ,april #ae1 #bjac ,mr4 ,luetkemeyer 7for himself and ,mr4 ,meeks7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to create a ,federal charter for ,internet consumer credit corporations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,consumer ,credit ,access1 ,innovation1 and ,modernization ,act4 #b4 ,findings2 purpose2 and intent 7a7 ,findings ,congress finds the following3 7#a7 ,studies by the ,federal ,deposit ,insurance ,corporation 7,,fdic71 ,national ,bureau of ,economic ,research1 ,,finra ,investor ,education ,foundation1 and other credible parties have shown that roughly half of all ,american families1 including not only lower and moderate income families but also a large segment of middle and higher income families who have poor credit scores and limited disposable incomes1 are literally living paycheck-to-paycheck1 lacking adequate savings and other resources to cover unplanned expenses that frequently arise in every household4 7#b7 ,these consumers 7in this ,act referred to as underserved consumers7 include those who are unbanked1 having neither a checking or savings account at a depository institution1 and those who are underbanked1 having such an account and frequently having higher incomes but credit impairments1 while nonetheless needing to rely on nondepository financial institutions for short-term1 small loans and other credit products and financial services they desperately need1 but generally cannot obtain from traditional banking institutions4 7#c7 ,credit alternatives for underserved consumers generally are limited and often not well suited to their particular needs and in some instances lack any statutory consumer protections4 7#d7 ,programs by the ,,fdic and other parties to expand access to small loans and other financial products or services for underserved consumers through banking institutions have had very limited success because banks1 which typically have relatively high operating costs1 generally have been unable to make affordable small personal loans on a widespread1 commercially viable basis to these higher risk consumers1 most of whom may not even qualify for a loan under the high-credit standards regulators necessarily require insured depositories to maintain4 7#e7 ,to the extent that depository institutions offer underserved consumers affordable small loans and other financial products or services on a commercially viable basis1 they should be encouraged to do so1 but it must be recognized that overcoming the practical business obstacles for depositories to offer such products or services appears to be quite difficult at best for most depositories1 and given the massive scope of the short-term credit needs of such consumers1 depositories most likely will be unable to provide affordable small loans and other financial products or services for a significant number of them4 7#f7 ,efforts of governmental1 nonprofit1 and private sector institutions to help underserved consumers manage their personal finances more effectively through financial education and counseling programs also are important and must continue1 but given the tremendous number of consumers who face significant ongoing financial challenges1 most such underserved consumers are likely to be unable to overcome their financial difficulties through such efforts4 7#g7 ,nondepository creditors historically have been primarily ,state-regulated1 are not federally insured1 generally pose little or no systemic or taxpayer risk1 typically have lower operating costs and can employ less restrictive credit standards than depositories1 and are a major source of small loans and financial products or services for underserved consumers1 providing such consumers annually with billions of dollars in credit4 7#h7 ,a number of nondepository creditors have developed advanced proprietary loan underwriting and servicing procedures and cutting-edge technologies allowing them to offer credit to more underserved consumers1 but such creditors lack the authority available to national banks to operate on a multistate or nationwide basis using a single lending charter and subject to strong1 uniform ,federal regulation that would enable them to maximize their capacities to operate more innovatively and efficiently4 7#i7 ,nondepository creditors are instead subject to widely differing ,state licensing laws that impose substantial cost and compliance burdens1 and1 more significantly1 laws that severely limit the types of financial products or services that may be offered1 prevent loans from being provided on a commercially viable basis1 stifle innovation1 reduce competition1 and leave underserved consumers with a limited choice of products or services that in many cases are not well suited to their personal needs and cost significantly more because of these conflicting and outdated restrictive ,state laws4 7#aj7 ,it is in the national interest and will greatly benefit the millions of underserved consumers who have pressing needs for additional credit alternatives for ,congress to adopt legislation to authorize creditors the option of receiving a ,federal charter under which they can provide such consumers loans and other financial products and services through the ,internet and electronic devices and not traditional brick-and-mortar storefront locations1 allowing them to operate more innovatively and efficiently on a nationwide basis4 7#aa7 ,an ,internet consumer credit corporation chartered under this ,act will be adequately regulated under ,federal laws and regulations prescribed by the ,comptroller of the ,currency and the ,director of the ,consumer ,financial ,protection ,bureau1 and such laws and regulations shall be enforced in accordance with this ,act without such corporation being subjected to duplicative and conflicting ,state laws that in many cases severely and unnecessarily restrict product innovation and choice and raise the cost of the limited credit choices now available to underserved consumers4 7#ab7 ,allowing such federally regulated lending by ,internet creditors as authorized by this ,act through the ,internet and by electronic devices1 but not through traditional storefront1 brick-and-mortar locations1 on a nationwide basis1 is consistent with the fact that consumers' borrowing habits are shifting rapidly to seeking more financial product and service choices with the convenience1 ease of credit access1 and more alternatives provided by computers1 mobile phones1 and other electronic devices1 and millions of underserved consumers will be able to secure credit from ,internet consumer credit corporations that are subject to applicable ,state and ,federal laws4 7#ac7 ,small businesses1 which are vital to job creation and the health of the ,nation's economy1 also have a continuing need for additional credit alternatives1 and allowing ,internet consumer credit corporations to offer certain financial products and services to small businesses through the ,internet and by electronic devices will be in the national interest4 7b7 ,purpose and intent ,the purpose and intent of this ,act is to-- 7#a7 provide underserved consumers greater access to innovative1 affordable1 commercially viable1 and better suited financial products and services2 7#b7 create a ,federal charter for creditors that offer financial products or services through the ,internet and electronic devices and not traditional brick-and-mortar storefront locations and focus their business primarily on meeting the credit needs of underserved consumers and small businesses1 enabling such ,internet creditors to provide more innovative1 affordable1 and appropriate credit options1 subject to uniform ,federal lending standards rather than operating under the widely varying1 often conflicting1 overly restrictive1 and unnecessarily costly system of ,state lending laws that currently prevent nondepository creditors from offering underserved consumers and small businesses the credit options they need2 7#c7 clarify that ,congress understands that even with the more innovative and efficient lending authorized by this ,act and reasonable pricing by ,internet consumer credit corporations1 the cost of commercially viable1 short-term1 small-dollar credit for higher risk underserved consumers typically will be considerably higher than the cost for other consumers who have no credit impairments and that when the cost of such credit is expressed in terms of an annual percentage rate1 in most cases such rate will be much higher than such rate for larger1 longer term loans1 especially those made to consumers with unimpaired credit records1 and therefore it should not be presumed or necessarily concluded that such credit extensions to underserved consumers are unfair or abusive1 provided full disclosure of the cost of such credit is made as required by this ,act and such corporation has a reasonable basis for determining that an underserved consumer can repay1 therefore indicating that the credit is affordable2 7#d7 require that the ,comptroller exercise his or her authorities to administer1 enforce1 and implement the provisions of this ,act and regulations prescribed pursuant to this ,act to provide for ongoing prudential regulatory oversight of ,internet consumer credit corporations and to promptly adopt reasonable and flexible policies and procedures to ensure the approval of ,federal charters for qualified applicants1 while also promoting the offering of innovative1 affordable1 and commercially viable financial products or services2 and 7#e7 require that the ,director exercise his or her authorities to administer1 enforce1 and implement the provisions of ,federal consumer financial laws and applicable provisions of this ,act and regulations prescribed pursuant to this ,act to ensure that underserved consumers receive effective consumer financial protections1 while also promoting the offering of innovative1 affordable1 and commercially viable financial products or services4 #c4 ,internet ,consumer ,credit ,corporations 7a7 ,federal charter ,in accordance with the provisions of this ,act1 and regulations prescribed pursuant to this ,act1 the ,comptroller shall charter creditors which shall become ,internet consumer credit corporations 7hereinafter referred to as ,internet creditors7 to offer financial products or services primarily to underserved consumers and small businesses as provided for in this ,act4 7b7 ,application required 7#a7 ,in general ,a person that desires to obtain a ,federal charter under this ,act shall submit an application to the ,comptroller at such time1 in such manner1 and accompanied by such information as the ,comptroller may require4 7#b7 ,expeditious determination ,the ,comptroller shall make a determination as to whether an application submitted under paragraph 7#a7 is approved or denied expeditiously4 7c7 ,requirements ,in seeking a ,federal charter under this ,act1 an applicant shall meet the following requirements3 7#a7 ,a business plan shall be established covering at least the initial #c-year period of operation as a commercially viable entity with its primary business activities being to serve the needs of underserved consumers and small businesses for credit and related financial services through the ,internet and electronic devices and not through brick-and-mortar locations1 and such plan shall-- 7,a7 realistically forecast market demand1 the intended customer base1 competition1 economic conditions1 financial projections1 and business risks2 7,b7 include a marketing plan that describes the types of financial products or services such creditor intends to offer1 how it will market them1 and how such products or services are expected to be affordable for underserved consumers and small businesses and commercially viable for the creditor2 and 7,c7 contain an acceptable plan for-- 7i7 ensuring compliance with all applicable laws and regulations2 and 7ii7 for promptly addressing complaints from underserved consumers and small businesses4 7#b7 ,a competent and experienced management team of good moral character with expertise in and a commitment to serving the credit needs of underserved consumers1 experience in offering financial services products to consumers through the ,internet or electronic devices1 and awareness and understanding of applicable legal requirements shall be established4 7#c7 ,adequate capital structure relative to the operational and financial assumptions and business plans of the applicant1 including the cost of utilizing advanced technology and information management systems for its operating and compliance needs1 shall be established4 7#d7 ,no ,internet creditor shall be directly or indirectly owned or controlled by any person unless-- 7,a7 the person is an individual1 a ,federal- or ,state-chartered depository institution1 a bank holding company 7as defined in section #b7;a7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda7;a7771 a savings and loan holding company 7as defined in section #aj7;a77#a77;,d7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a77#a77;,d7771 or a nonprofit corporation2 or 7,b7 the primary business activity of the person involves-- 7i7 providing financial products or services to consumers2 or 7ii7 owning or controlling persons whose primary business activity is providing financial products or services to consumers4 7#e7 ,any other requirements provided for under this ,act or in regulations prescribed by the ,comptroller consistent with the purposes of this ,act4 7d7 ,authority of ,internet ,creditors ,upon receiving a ,federal charter pursuant to subsection 7a71 an ,internet creditor shall become1 as from the date of the execution of its charter1 a body corporate1 and1 as such1 an ,internet consumer credit corporation1 and in the name designated in the charter it is authorized to-- 7#a7 adopt and use a corporate seal2 7#b7 have succession from the date its charter is issued until such time as it be dissolved by the act of its shareholders owning two-thirds of its stock1 or until its charter is revoked by the ,comptroller1 or until terminated by an ,act of ,congress1 or until its affairs are placed in the hands of a receiver and finally wound up by the receiver in accordance with title #aa1 ,united ,states ,code1 or other applicable law2 7#c7 borrow money1 issue stock1 and enter into contracts2 7#d7 sue and be sued and complain and defend1 in any court of law and equity of competent jurisdiction1 as fully as natural persons2 7#e7 elect or appoint directors1 and by its board of directors to appoint a president1 vice president1 and other officers1 define their duties1 require bonds of them and fix the penalty thereof1 dismiss such officers or any of them at pleasure1 and appoint others to fill their places2 7#f7 prescribe1 by its board of directors1 bylaws not inconsistent with law1 regulating the manner in which its stock shall be transferred1 its directors elected or appointed1 its officers appointed1 its property transferred1 its general business conducted1 and the privileges granted to it by law exercised and enjoyed2 7#g7 hire employees and consultants and fix their compensation1 define their duties1 and give such persons appropriate authority to carry on its business operations2 7#h7 enter into joint ventures and other business partnerships with other ,internet creditors1 depository institutions1 ,state-chartered or licensed nondepository creditors1 third-party service providers and vendors1 and other parties to promote or facilitate providing as herein authorized commercially viable financial products or services to underserved consumers and small businesses2 7#i7 contribute to community funds1 or to charitable1 philanthropic1 or benevolent instrumentalities conducive to public welfare1 such sums as its board of directors may deem expedient and in the interests of the ,internet creditor2 7#aj7 invest in1 or buy or lease1 real estate or tangible personal property1 including vehicles1 equipment1 furnishings and furniture1 to be used by the ,internet creditor in conducting business related operations authorized under this ,act2 7#aa7 provide loans and other financial services only through the ,internet and electronic devices as its board of directors or duly authorized officers or agents may determine1 in accordance with this ,act and regulations prescribed pursuant to this ,act1 are appropriate for providing financial products or services to consumers1 including underserved consumers1 and to small businesses in accordance with the provisions of this ,act and regulations prescribed pursuant to this ,act2 7#ab7 exercise by its board of directors or duly authorized officers or agents1 subject to law1 all such incidental1 implied1 or reasonably necessary powers as may be appropriate to carry on its corporate operations and the business of providing commercially viable financial products or services to consumers1 including underserved consumers and small businesses in accordance with the provisions of this ,act and regulations prescribed pursuant to this ,act2 7#ac7 be affiliated with1 or owned by1 an insured depository institution1 nondepository creditor1 nonprofit organization1 or other qualified entities unless otherwise limited by this ,act or regulations prescribed pursuant to this ,act2 7#ad7 acquire or merge with other ,internet creditors2 and 7#ae7 exercise such other powers as may be reasonably necessary or appropriate to offer financial products or services as provided for pursuant to this ,act1 or provided for through regulations prescribed by the ,comptroller pursuant to the provisions of this ,act4 7e7 ,duties and responsibilities 7#a7 ,comptroller of the ,currency ,the ,comptroller shall-- 7,a7 ensure that ,internet creditors only provide loans and other financial products or services through the ,internet and electronic devices and that1 to the extent reasonably possible1 such creditors primarily focus their business operations on providing underserved consumers a variety of affordable financial products or services that are commercially viable for such creditors1 including certain products or services that contain features to facilitate personal savings and enhance the credit record of such consumers2 7,b7 encourage and facilitate-- 7i7 innovation with respect to the financial products or services offered to underserved consumers2 and 7ii7 joint ventures and other business partnerships among ,internet creditors1 insured depository institutions1 other nondepository creditors1 third-party service providers and vendors1 nonprofit organizations1 and other parties in order to ensure greater credit access for underserved consumers and small businesses2 7,c7 provide1 through regulations1 details on how ,internet creditors should be organized1 incorporated1 and operated in a prudential manner2 7,d7 conduct examination and supervisory activities of ,internet creditors to-- 7i7 access their internal controls and management ability2 7ii7 evaluate their financial condition and risk profile2 7iii7 determine if they are meeting the needs of underserved consumers and small businesses2 and 7iv7 monitor their compliance with this ,act and other applicable laws and regulations that the ,comptroller may have administrative responsibly for1 and identify areas in which corrective action is needed2 7,e7 consult1 cooperate and coordinate1 as appropriate1 with the ,director and with other ,federal and ,state regulatory agencies1 including ,state bank supervisors1 to promote much greater availability of innovative1 affordable1 commercially viable credit for underserved consumers1 and consistent regulatory treatment of consumer and small business financial products and services2 7,f7 help ensure that the supervisory activities1 including examination schedules1 of ,internet creditors and affiliated companies are conducted in a coordinated and efficient manner2 and 7,g7 adopt adequate safeguards to ensure appropriate privacy and confidentiality protections with respect to individually identifiable personal data and proprietary corporate data4 7#b7 ,director of the ,bureau of ,consumer ,financial ,protection ,the ,director shall-- 7,a7 regulate the offering and provision of consumer financial products or services by ,internet creditors under the ,federal consumer financial laws pursuant to its authorities under the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecja et seq471 this ,act1 and regulations prescribed pursuant to this ,act2 7,b7 consult1 cooperate1 and coordinate1 as appropriate1 with the ,comptroller and with other ,federal and ,state regulatory agencies1 including ,state bank supervisors1 to promote-- 7i7 much greater availability of innovative1 affordable1 commercially viable credit for underserved consumers and small businesses2 and 7ii7 consistent regulatory treatment of consumer and small business financial products or services2 7,c7 help ensure that the supervisory activities1 including examination schedules1 of ,internet creditors and affiliated companies are conducted in a coordinated and efficient manner2 and 7,d7 adopt adequate safeguards to ensure appropriate privacy and confidentially protections with respect to individually identifiable personal data and proprietary corporate data4 7#c7 ,internet ,creditors ,each ,internet creditor shall-- 7,a7 make financial education information available to each consumer it offers a financial product or service1 including information on how a consumer may obtain financial counseling services1 the benefits of following a regular personal savings program1 and how consumers can improve their credit ratings2 7,b7 comply with all applicable ,federal laws and regulations1 including ,federal consumer financial protection law requirements and such ,state laws1 regulations1 and enforcement actions as are authorized under the provisions of this ,act2 7,c7 provide account access to its customers through the ,internet and a toll-free telephone number2 7,d7 provide1 in accordance with regulations prescribed pursuant to this ,act1 to all consumers who are extended credit with a repayment term of #a year or less by the ,internet creditor a clear and conspicuous statement in the loan agreement that discloses the true cost of the loan1 including all interest1 fees1 and other loan-related charges1 as a dollar amount and as a percentage of the principal amount of the loan in lieu of the annual percentage rate disclosure that otherwise would be required under the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afja et seq47 or regulations prescribed pursuant to such ,act2 7,e7 report to the ,comptroller or ,director such data as either may require regarding its activities1 including the types of financial products or services provided to underserved consumers and small businesses1 and data demonstrating that its business activities are focused primarily on serving underserved consumers and small businesses as required by this ,act2 7,f7 offer-- 7i7 an underserved consumer who is unable to repay an extension of credit by an ,internet creditor that has a loan repayment term of less than #abj days1 an extended repayment plan1 at no cost to the consumer1 at least once in a #ab-month period2 and 7ii7 to the extent reasonably possible1 certain financial products or services that contain features to facilitate personal savings that could help underserved consumers enhance their credit records if such consumers fully comply with the terms and conditions of such products or services2 and 7,g7 not-- 7i7 accept consumer or commercial deposits2 7ii7 make commercial loans1 except to the extent allowed by the provisions of this ,act and regulations prescribed pursuant to this ,act1 with respect to small businesses2 7iii7 make a consumer loan with a term of #cj days or less2 7iv7 make a loan that requires a consumer to repay the loan balance in one lump-sum payment2 or 7v7 extend credit to a consumer-- 7,i7 unless the ,internet creditor has a reasonable basis for believing that the consumer will have the ability to repay the credit extension2 7,,ii7 if the maximum principal amount of the credit outstanding from all financial products or services authorized by the ,internet creditor to such consumer1 in the case of an unsecured credit transaction1 exceeds #e1jjj1 or in the case of a secured credit transaction1 #be1jjj1 unless a higher amount is authorized by regulations prescribed by the ,comptroller2 or 7,,iii7 if the loan terms include a prepayment penalty2 or 7vi7 extend credit to a small business in excess of #be1jjj4 7f7 ,additional product or service offerings ,financial products or services that may be offered to underserved consumers pursuant to this subsection for underserved consumers and certain small businesses may also be offered to other consumers and businesses4 7g7 ,rule of construction ,nothing in this ,act is intended to provide the ,comptroller or the ,director with the authority to-- 7#a7 regulate financial products or services that are provided or offered by an affiliate company or another entity that the ,internet creditor has a business relationship with1 but the ,internet creditor does not provide or offer to underserved consumers or small businesses in accordance with this ,act2 7#b7 determine1 directly or indirectly1 pricing applicable to an extension of credit offered by an ,internet creditor to a consumer or small business pursuant to this ,act through a usury limit1 a cap on the rate of interest1 fees1 or other charges1 or otherwise2 7#c7 prohibit1 directly or indirectly1 the offering of a financial product or service to underserved consumers or small businesses by an ,internet creditor pursuant to this ,act unless a determination is made by the ,comptroller or ,director1 based on a fair and reasonable determination of the facts and circumstances regarding the financial product or service1 that offering such a product or service will seriously harm the financial interests of underserved consumers or small businesses2 or 7#d7 presume or conclude that a credit extension offered to underserved consumers by an ,internet creditor under the provisions of this ,act1 regulations prescribed by this ,act1 and such other statutes and regulations as either may have administrative and enforcement authority for is unfair1 abusive1 or otherwise inappropriate solely on the basis that the interest rates and other charges to such consumers1 who typically pose relatively high credit risks1 are significantly higher than those on credit extensions offered to other consumers who do not pose such high credit risks4 7h7 ,internet ,creditor regulatory fee ,each ,internet creditor shall pay to the ,comptroller an annual fee in a reasonable amount that the ,comptroller determines is sufficient1 in the aggregate of all such fees paid by ,internet creditors1 to offset the cost to the ,comptroller of carrying out the provisions of this ,act4 7i7 ,charter suspension or revocation ,the ,comptroller1 pursuant to procedures established in regulations prescribed by the ,comptroller1 may suspend or revoke the charter of an ,internet creditor if there has been a material failure by the ,internet creditor to comply with the requirements set forth in the charter1 provisions of this ,act1 or other applicable statutes1 regulations1 or orders4 7j7 ,relationship to other ,federal and ,state laws 7#a7 ,federal law ,an ,internet creditor is subject to-- 7,a7 all otherwise applicable provisions of ,federal statutes and regulations1 including the consumer financial laws listed under section #ajjb7ad7 of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha7ad771 section #ihg of title #aj1 ,united ,states ,code 7relating to consumer credit extended to servicemembers and dependents71 and the provisions of this ,act and regulations established pursuant to this ,act2 and 7,b7 the administration and enforcement of such statutes and regulations by the ,comptroller1 the ,director1 any other ,federal agency1 or ,state attorney general 7or the equivalent thereof7 having enforcement authority4 7#b7 ,state law ,an ,internet creditor1 or an employee1 agent1 or other business partner of an ,internet creditor1 shall not be subject to-- 7,a7 ,state laws that relate to office location1 licensing1 education1 or training that apply to the operations of an ,internet creditor1 or its employees1 agents1 or other business partners to the extent that these operations relate to the exercise of its powers or authorities under this ,act and implementing regulations to provide financial products or services to underserved consumers and small businesses2 or 7,b7 other ,state laws that-- 7i7 have a discriminatory effect on an ,internet creditor compared to the effect of such laws on any other depository or nondepository creditor chartered or licensed in that ,state2 7ii7 consistent with the legal standard for preemption in the decision of the ,supreme ,court of the ,united ,states in ,barnett ,bank of ,marion ,county1 ,n4,a4 v4 ,nelson1 ,florida ,insurance ,commissioner1 et al41 #eag ,u4,s4 #be 7#aiif71 prevent or significantly interfere with the exercise by an ,internet creditor of its powers and authorities as set forth in this ,act2 or 7iii7 are preempted by any provision of ,federal law4 7#c7 ,determination of preemption ,an ,internet creditor may challenge the applicability of a ,state law as preventing or significantly interfering with the exercise of such creditor's powers under this ,act1 or for violating any provision of paragraph 7#b71 in any court of competent jurisdiction1 and the ,comptroller or ,director1 by regulation or order1 or any court of competent jurisdiction may make a determination1 on a case-by-case basis1 that a ,state law prevents or significantly interferes with the exercise of an ,internet creditor's powers under this ,act1 or violates a provision of paragraph 7#b71 in accordance with applicable law4 7k7 ,enforcement 7#a7 ,in general ,the ,comptroller or the ,director may enforce in any court of competent jurisdiction the provisions of this ,act1 regulations prescribed pursuant to this ,act relating to their respective regulatory authority in this ,act1 and their respective cease and desist or other orders or regulatory requirements4 7#b7 ,action by ,state ,the attorney general 7or the equivalent thereof7 of any ,state shall have the power to investigate violations of this ,act and may bring a civil enforcement action in the name of such ,state against an ,internet creditor in any district court of the ,united ,states or in ,state court that has jurisdiction over the ,internet creditor and to secure civil penalties and such other remedies under provisions of this ,act or otherwise provided under other applicable law4 7#c7 ,consultation required 7,a7 ,notice 7i7 ,in general ,when initiating any action in a court or other administrative or regulatory proceeding against any ,internet creditor as authorized by this ,act to enforce any provision of this ,act1 including any regulation pursuant to this ,act1 a copy of the complete complaint filed or to be filed and written notice describing such action or proceeding shall be provided to the ,comptroller and the ,director by the ,state attorney general 7or the equivalent thereof7 prior to or immediately upon instituting the action or proceeding4 7ii7 ,contents of notice ,the notification required under this paragraph shall1 at a minimum1 describe-- 7,i7 the identity of the parties2 7,,ii7 the alleged facts underlying the proceeding2 and 7,,iii7 whether there may be a need to coordinate the prosecution of the proceeding so as not to interfere with any action1 including any rulemaking1 undertaken by the ,comptroller or the ,director4 7,b7 ,comptroller and ,director response ,in any action brought by a ,state attorney general 7or equivalent thereof71 the ,comptroller and ,director may-- 7i7 intervene in the action as a party2 and 7ii7 upon intervening-- 7,i7 remove the action to the appropriate ,united ,states district court1 if the action was not originally brought there2 7,,ii7 be heard on all matters arising in the action2 and 7,,iii7 appeal any order or judgment1 to the same extent as any other party in the proceeding may4 7#d7 ,regulations ,the ,comptroller and the ,director shall jointly prescribe regulations to implement the requirements of this subsection and1 from time to time1 consult with ,state attorneys general 7or the equivalent thereof7 in order to develop appropriate protocols to coordinate actions with the ,state attorneys general and other appropriate regulators4 7#e7 ,preservation of ,state authority ,no provision of this ,act shall be construed as modifying1 limiting1 or superseding the operation of any provision of any ,federal consumer financial protection law or regulations prescribed pursuant to such laws that relates to the authority of a ,state attorney general 7or the equivalent thereof7 to enforce such ,federal law and regulations4 7l7 ,penalties for violations ,the relief available for violations of provisions of this ,act1 regulations prescribed pursuant to this ,act1 or orders or supervisory mandates1 including cease and desist orders1 with respect to proceedings involving ,internet creditors by the ,comptroller1 the ,director1 or ,state attorneys general 7or the equivalent thereof7 shall be the same as or equivalent to that provided with respect to actions by the ,director in section #ajee of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #eefe74 7m7 ,reports to congress ,not later than #ahj days after the effective date of this ,act1 and annually for #e years thereafter1 the ,comptroller and the ,director shall submit to ,congress a joint report on their activities and progress in helping to expand access to innovative and affordable credit for underserved consumers and small businesses1 and such reports shall include-- 7#a7 a descriptive summary of the actions of the ,comptroller and the ,director during the reporting period to carry out the purposes of this ,act2 7#b7 the number of charter applications received by the ,comptroller2 7#c7 the number of charter applications that were approved1 disapproved1 conditionally approved1 or are pending and a detailed explanation of each disapproval or conditional approval2 7#d7 a description of any further actions the ,comptroller or the ,director believes should be undertaken to-- 7,a7 facilitate the chartering of qualified nondepository institutions2 and 7,b7 increase the number of financial products that are available to help increase competition and consumer choice for underserved consumers2 and 7#e7 any recommendations the ,comptroller or the ,director may have regarding other legislative measures that would improve the ability of an ,internet creditor to provide additional financial products or services to underserved consumers or small businesses4 7n7 ,regulations ,the ,comptroller and the ,director shall consult and prescribe joint regulations implementing the provisions of this ,act not later than #ahj days after the effective date of this ,act4 #d4 ,definitions ,in this ,act3 7#a7 ,affiliate ,the term affiliate means any person that controls1 is controlled by1 or is under common control with another person4 7#b7 ,affordable ,the term affordable means that a creditor has a reasonable expectation that a consumer or small business will be able to repay an extension of credit4 7#c7 ,commercially viable ,the term commercially viable means that a reasonable economic profit is expected to be made when a financial product or service is provided to a consumer or small business4 7#d7 ,comptroller ,the term ,comptroller means the ,comptroller of the ,currency4 7#e7 ,consumer ,the term consumer means an individual or agent1 trustee1 or representative acting on behalf of an individual4 7#f7 ,control and controlled by ,the terms control and controlled by mean that-- 7,a7 a person directly or indirectly or acting through #a or more other persons owns1 controls1 or has power to vote #be percent or more of any class of voting stock of a company2 7,b7 a person controls in any manner the election of a majority of the directors or trustees of a company2 or 7,c7 the ,comptroller makes a determination1 after notice and opportunity for hearing1 that a person directly or indirectly exercises a controlling influence over the management or policies of a company4 7#g7 ,credit ,the term credit means the right granted by a person to a consumer or a small business to defer payment of a debt1 incur debt and defer its payment1 or purchase property or services and defer payment for such purchase4 7#h7 ,creditor ,the term creditor has the same meaning as is given such term in section #ajc7;g7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb7;g771 and for purposes of this ,act1 shall include a person who extends credit to a small business pursuant to the provisions of this ,act4 7#i7 ,director ,the term ,director means the ,director of the ,bureau of ,consumer ,financial ,protection4 7#aj7 ,electronic device ,the term electronic device means an electronic device that communicates by any transfer of signs1 signals1 writing1 images1 sounds1 data1 or intelligence of any nature transmitted in whole or in part by a wire1 radio1 electromagnetic1 photoelectronic1 or photo-optical system that affects interstate or foreign commerce4 7#aa7 ,extended repayment plan ,the term extended repayment plan means an installment plan under which a consumer who is unable to repay a credit extension on a loan with a term of less than #abj days on the date due1 and who complies with applicable requirements established in regulations pursuant to this ,act1 may repay a creditor the outstanding balance of the loan in at least #d substantially equal payments without being charged any additional interest1 fees1 or other charges4 7#ab7 ,federal consumer financial laws ,the term ,federal consumer financial laws has the same meaning as is given to that term in section #ajjb7ad7 of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha7ad774 7#ac7 ,financial product or service ,the term financial product or service has the same meaning as is given the term consumer financial product or service in section #ajjb7e7 of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha7e771 and for purposes of this ,act1 shall also include a financial product or service provided to a small business4 7#ad7 ,insured depository institution and depository institution ,the terms insured depository institution and depository institution 7also referred to herein as depositories7 have the same meanings as are given such terms under section #c7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7;c771 and for purposes of this ,act1 also includes an insured credit union as such term is defined under section #aja7g7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb7g774 7#ae7 ,internet ,the term ,internet means the international computer network of interoperable packet-switched data networks4 7#af7 ,nondepository creditor ,the term nondepository creditor means an entity that is chartered or licensed by a ,state and offers personal loans or other financial products or services to consumers or small businesses1 but does not accept consumer or commercial deposits4 7#ag7 ,person ,the term person means an individual1 partnership1 company1 corporation1 association 7incorporated or unincorporated71 trust1 estate1 cooperative organization1 or any other entity4 7#ah7 ,primary business activities ,the term primary business activities means that the business activities of an ,internet creditor predominately involve providing financial products and services to underserved consumers and small businesses4 7#ai7 ,secured credit transaction ,the term secured credit transaction means-- 7,a7 a consumer credit transaction where the performance of the credit obligation is secured by an interest in property2 and 7,b7 such transaction is recognized as secured by ,state or ,federal law1 provided1 however1 a consumer's authorization for an electronic fund transfer as a payment on a financial product or service shall not be considered1 for purposes of this ,act1 as security on a credit transaction4 7#bj7 ,small business ,the term small business means a business entity1 including a sole proprietorship1 that has less than #ejj full-time employees4 7#ba7 ,state ,the term ,state means-- 7,a7 a ,state1 territory1 or possession of the ,united ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,commonwealth of the ,northern ,mariana ,islands1 ,guam1 ,american ,samoa1 and the ,united ,states ,virgin ,islands4 7#bb7 ,underserved consumer ,the term underserved consumer means a natural person who-- 7,a7 does not have a checking or savings account with an insured depository institution2 or 7,b7 has a deposit account with an insured depository institution1 but has limited or no ability to obtain small personal loans or other nondepository financial products or services from an insured depository institution4 7#bc7 ,unsecured credit transaction ,the term unsecured credit transaction means a consumer credit transaction where the performance of the credit obligation is not secured by an interest in property or where the security interest is not recognized by ,state or ,federal law4 #e4 ,conforming amendment to ,,tila ,section #ajd of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjc7 is amended by adding at the end the following3 7#h7 ,credit transactions involving extensions of credit with a term of #a year or less in which the creditor provides consumers in all such credit transactions with a clear and conspicuous statement in the loan agreement that discloses the true cost of the loan1 including all interest1 fees1 and other loan related charges1 as a dollar amount and as a percentage of the principal amount of the loan4 4 #f4 ,effective date ,this ,act shall be effective #ahj days after the date of the enactment of this ,act4