,,ii #aacth ,,congress #ast ,session ,s4 #fgc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #i1 #bjac ,mr4 ,durbin 7for himself1 ,mr4 ,blumenthal1 ,mrs4 ,boxer1 ,mr4 ,merkley1 and ,mr4 ,whitehouse7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,truth in ,lending ,act to establish a national usury rate for consumer credit transactions4 #a4 ,short title ,this ,act may be cited as the ,protecting ,consumers from ,unreasonable ,credit ,rates ,act of #bjac4 #b4 ,findings ,congress finds that-- 7#a7 attempts have been made to prohibit usurious interest rates in ,america since colonial times2 7#b7 at the ,federal level1 in #bjjf1 ,congress enacted a ,federal #cf percent annualized usury cap for servicemembers and their families for covered credit products1 as defined by the ,department of ,defense1 which curbed payday1 car title1 and tax refund lending around military bases2 7#c7 notwithstanding such attempts to curb predatory lending1 high-cost lending persists in all #ej ,states due to loopholes in ,state laws1 safe harbor laws for specific forms of credit1 and the exportation of unregulated interest rates permitted by preemption2 7#d7 due to the lack of a comprehensive ,federal usury cap1 consumers annually pay approximately #bc1gjj1jjj1jjj for high-cost overdraft loans1 as much as #h1ajj1jjj1jjj for storefront and online payday loans1 and additional amounts in unreported revenues from bank direct deposit advance loans and high-cost online installment loans2 7#e7 cash-strapped consumers pay on average #djj percent annual interest for payday loans1 #cjj percent annual interest for car title loans1 up to #c1ejj percent for bank overdraft loans1 and triple-digit rates for online installment loans2 7#f7 a national maximum interest rate that includes all forms of fees and closes all loopholes is necessary to eliminate such predatory lending2 and 7#g7 alternatives to predatory lending that encourage small dollar loans with minimal or no fees1 installment payment schedules1 and affordable repayment periods should be encouraged4 #c4 ,national maximum interest rate ,chapter #b of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afca et seq47 is amended by adding at the end the following3 #adj;,b4 ,maximum rates of interest 7a7 ,in general ,notwithstanding any other provision of law1 no creditor may make an extension of credit to a consumer with respect to which the fee and interest rate1 as defined in subsection 7b71 exceeds #cf percent4 7b7 ,fee and interest rate defined 7#a7 ,in general ,for purposes of this section1 the fee and interest rate includes all charges payable1 directly or indirectly1 incident to1 ancillary to1 or as a condition of the extension of credit1 including-- 7,a7 any payment compensating a creditor or prospective creditor for-- 7i7 an extension of credit or making available a line of credit1 such as fees connected with credit extension or availability such as numerical periodic rates1 annual fees1 cash advance fees1 and membership fees2 or 7ii7 any fees for default or breach by a borrower of a condition upon which credit was extended1 such as late fees1 creditor-imposed not sufficient funds fees charged when a borrower tenders payment on a debt with a check drawn on insufficient funds1 overdraft fees1 and over limit fees2 7,b7 all fees which constitute a finance charge1 as defined by rules of the ,bureau in accordance with this title2 7,c7 credit insurance premiums1 whether optional or required2 and 7,d7 all charges and costs for ancillary products sold in connection with or incidental to the credit transaction4 7#b7 ,tolerances 7,a7 ,in general ,with respect to a credit obligation that is payable in at least #c fully amortizing installments over at least #ij days1 the term fee and interest rate does not include-- 7i7 application or participation fees that in total do not exceed the greater of #cj or1 if there is a limit to the credit line1 #e percent of the credit limit1 up to #abj1 if-- 7,i7 such fees are excludable from the finance charge pursuant to section #ajf and regulations issued thereunder2 7,,ii7 such fees cover all credit extended or renewed by the creditor for #ab months2 and 7,,iii7 the minimum amount of credit extended or available on a credit line is equal to #cjj or more2 7ii7 a late fee charged as authorized by ,state law and by the agreement that does not exceed either #bj per late payment or #bj per month2 or 7iii7 a creditor-imposed not sufficient funds fee charged when a borrower tenders payment on a debt with a check drawn on insufficient funds that does not exceed #ae4 7,b7 ,adjustments for inflation ,the ,bureau may adjust the amounts of the tolerances established under this paragraph for inflation over time1 consistent with the primary goals of protecting consumers and ensuring that the #cf percent fee and interest rate limitation is not circumvented4 7c7 ,calculations 7#a7 ,open end credit plans ,for an open end credit plan-- 7,a7 the fee and interest rate shall be calculated each month1 based upon the sum of all fees and finance charges described in subsection 7b7 charged by the creditor during the preceding #a-year period1 divided by the average daily balance2 and 7,b7 if the credit account has been open less than #a year1 the fee and interest rate shall be calculated based upon the total of all fees and finance charges described in subsection 7b77#a7 charged by the creditor since the plan was opened1 divided by the average daily balance1 and multiplied by the quotient of #ab divided by the number of full months that the credit plan has been in existence4 7#b7 ,other credit plans ,for purposes of this section1 in calculating the fee and interest rate1 the ,bureau shall require the method of calculation of annual percentage rate specified in section #ajg7;a77#a71 except that the amount referred to in that section #ajg7;a77#a7 as the finance charge shall include all fees1 charges1 and payments described in subsection 7b77#a7 of this section4 7#c7 ,adjustments authorized ,the ,bureau may make adjustments to the calculations in paragraphs 7#a7 and 7#b71 but the primary goals of such adjustment shall be to protect consumers and to ensure that the #cf percent fee and interest rate limitation is not circumvented4 7d7 ,definition of creditor ,as used in this section1 the term creditor has the same meaning as in section #gjb7;e7 of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;a7e774 7e7 ,no exemptions permitted ,the exemption authority of the ,bureau under section #aje shall not apply to the rates established under this section or the disclosure requirements under section #abg7;b77#f74 7f7 ,disclosure of fee and interest rate for credit other than open end credit plans ,in addition to the disclosure requirements under section #abg7;b77#f71 the ,bureau may prescribe regulations requiring disclosure of the fee and interest rate established under this section4 7g7 ,relation to ,state law ,nothing in this section may be construed to preempt any provision of ,state law that provides greater protection to consumers than is provided in this section4 7h7 ,civil liability and enforcement ,in addition to remedies available to the consumer under section #acj7;a71 any payment compensating a creditor or prospective creditor1 to the extent that such payment is a transaction made in violation of this section1 shall be null and void1 and not enforceable by any party in any court or alternative dispute resolution forum1 and the creditor or any subsequent holder of the obligation shall promptly return to the consumer any principal1 interest1 charges1 and fees1 and any security interest associated with such transaction4 ,notwithstanding any statute of limitations or repose1 a violation of this section may be raised as a matter of defense by recoupment or setoff to an action to collect such debt or repossess related security at any time4 7i7 ,violations ,any person that violates this section1 or seeks to enforce an agreement made in violation of this section1 shall be subject to1 for each such violation1 #a year in prison and a fine in an amount equal to the greater of-- 7#a7 #c times the amount of the total accrued debt associated with the subject transaction2 or 7#b7 #ej1jjj4 7j7 ,state attorneys general ,an action to enforce this section may be brought by the appropriate ,state attorney general in any ,united ,states district court or any other court of competent jurisdiction within #c years from the date of the violation1 and such attorney general may obtain injunctive relief4 4 #d4 ,disclosure of fee and interest rate for open end credit plans ,section #abg7;b77#f7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afcg7;b77#f77 is amended by striking the total finance charge expressed and all that follows through the end of the paragraph and inserting the fee and interest rate1 displayed as ,,fair1 established under section #ada44