,i #aah? ,,congress #b;d ,session ,h4 ,r4 #hcch ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #aj1 #bjbd ,mrs4 ,kim ( ,cali=nia introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to regulate small-doll>1 %ort-t]m cr$it products1 to protect ! privacy ( l5d]s1 & to improve ! unfair1 deceptive1 or abusive acts or practices au?ority ( ! ,bureau ( ,consum] ,f9ancial ,protection1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,cl>ity 9 ,l5d+ ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,title ,i--,small-doll> cr$it products ,sec4 #aja4 ,safe h>bor = small-doll> cr$it products4 ,title ,,ii--,rectify+ ,undef9$ ,descriptions ( ,abusive ,acts & ,practices ,sec4 #bja4 ,mitigat+ factors 9 assess+ civil p5alties4 ,sec4 #bjb4 ,rulemak+ relat+ to unfair1 deceptive or abusive acts or practices4 ,sec4 #bjc4 ,au?ority to decl>e an act unlawful bas$ on discrim9ation or s]vice z gov]nm5t contractor4 ,sec4 #bjd4 ,cl>ify+ ! abusive /&>d = ! ,bureau ( ,consum] ,f9ancial ,protection4 ,sec4 #bje4 ,notice & opportunity to cure4 ,sec4 #bjf4 ,abusive1 unfair1 or deceptive acts or practices en=cem5t actions4 ,sec4 #bjg4 ,look-back provisions = ! ,bureau ( ,consum] ,f9ancial ,protection4 ,title ,,iii--,small ,l5d]s ,exempt f ,new ,data & ,excessive ,report+ ,sec4 #cja4 ,small bus9ess loan data collection4 ,title ,,iv--,bank ,loan ,privacy ,sec4 #dja4 ,rulemak+ requirem5t4 ,i ,small-doll> cr$it products #aja4 ,safe h>bor = small-doll> cr$it products 7a7 ,9 g5]al ,! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afja et seq47 is am5d$ by ins]t+ aft] section #aji ! foll[+3 #aaj4 ,safe h>bor = small-doll> cr$it products 7a7 ,9 g5]al ,if a cov]$ entity complies ) ! requirem5ts set =? 9 subsections 7b71 7c71 & 7e7 ) respect to ! (f]+ ( a small-doll> product to a consum]1 su* cov]$ entity %all n be liable 9 connection ) su* (f]+ ( a small-doll> product1 =-- 7#a7 any civil money p5alties f any en=cem5t action br\ght by ! ,bureau1 ! appropriate ,f$]al bank+ ag5cy1 or ! ,national ,cr$it ,union ,adm9i/ration = a violation ( ?is title2 or 7#b7 any damages or o!r monet>y relief ?r\gh a private "r ( action br\ght "u ?is title4 7b7 ,product /ructure requirem5ts 7#a7 ,9 ! case ( an in/allm5t loan ,if a small-doll> cr$it product is /ructur$ by a cov]$ entity z an in/allm5t loan-- 7,a7 ! repaym5t t]m %all be m ?an #de days2 7,b7 paym5ts %all be fully amortiz$ across m ?an "o paym5t2 7,c7 rollov]s into new small-doll> cr$it products %all be prohibit$2 & 7,d7 ! cov]$ entity may n issue any small-doll> cr$it product to a consum] if su* consum] has a small-doll> cr$it product op5 ) su* cov]$ entity at ! "t su* consum] applies = a small-doll> cr$it product4 7#b7 ,9 ! case ( a l9e ( cr$it ,if a small-doll> cr$it product is /ructur$ by a cov]$ entity z a l9e ( cr$it-- 7,a7 ! repaym5t t]m = ea* draw %all be m ?an #de days unless a s+le paym5t is us$ & ! draw is n m ?an #aj p]c5t ( ! less] ( #c1ejj or #bj p]c5t ( ! total am\nt ( a consum]'s av]age mon?ly direct deposits dur+ ! prec$+ six mon?s2 & 7,b7 paym5ts = ea* draw %all be fully amortiz$ across m ?an "o paym5t1 except 9 ! case ( any s+le-paym5t loans4 7#c7 ,rules ( con/ruction 7,a7 ,9 g5]al ,no?+ 9 ?is subsection may be con/ru$ to prohibit ! ,bureau1 a ,f$]al bank+ ag5cy1 or ! ,national ,cr$it ,union ,adm9i/ration f issu+ a cease-&-desi/ ord] or re/itution ord] "u ?is title aga9/ a cov]$ entity4 7,b7 ,en=cem5t ( o!r /atutes ,no?+ 9 ?is subsection may be con/ru$ to prohibit ! ,bureau1 a ,f$]al bank+ ag5cy1 or ! ,national ,cr$it ,union ,adm9i/ration f en=c+ any provision ( law n conta9$ )9 ?is title aga9/ a cov]$ entity4 7c7 ,und]writ+ requirem5ts ,:5 consid]+ :e!r to (f] a small-doll> cr$it product to a specific consum]1 a cov]$ entity-- 7#a7 %all use s\nd und]writ+ processes2 & 7#b7 may analyze int]nal or ext]nal data s\rces1 includ+ consum] deposit acc\nt activity1 to assess ! cr$itwor?9ess ( a consum]4 7d7 ,rule ( con/ruction ,no?+ 9 ?is title may be con/ru$ to prohibit a cov]$ entity f (f]+ a small-doll> product t does n comply ) ! safe h>bor requirem5ts set =? "u ?is section4 7e7 ,additional limitations & requirem5ts 7#a7 ,balloon paym5ts ,no paym5t requir$ 9 association ) a small-doll> cr$it product (f]$ by a cov]$ entity may be great] ?an d\ble ! am\nt ( any o!r paym5t requir$ 9 association ) su* product4 7#b7 ,disclosures ,ea* cov]$ entity t (f]s a small-doll> cr$it product %all comply ) all disclosure requirem5ts set =? by ?is title4 7#c7 ,p5alties & fees ,a cov]$ entity may n impose any prepaym5t p5alty1 ov]draft fee1 or nonsuffici5t funds fee 9 connection ) a small-doll> cr$it product4 7#d7 ,transf] ( am\nts ,am\nts made available to a consum] ?r\gh a small-doll> cr$it product (f]$ by a cov]$ entity %all be disburs$ to ! acc\nt ( su* consum] by su* cov]$ entity n lat] ?an #e days aft] ! approval ( ! consum] = ! small-doll> cr$it product4 7f7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ entity ,! t]m cov]$ entity means-- 7,a7 an insur$ depository in/itution2 7,b7 an insur$ cr$it union2 7,c7 a ?ird-p>ty ) :om an insur$ depository in/itution has contract$ = products or s]vices relat$ to orig9ation1 s]vic+1 or adm9i/rative managem5t ( a small-doll> cr$it product2 or 7,d7 a ?ird-p>ty ) :om an insur$ cr$it union has contract$ = products or s]vices relat$ to orig9ation1 s]vic+1 or adm9i/rative managem5t ( a small-doll> cr$it product4 7#b7 ,f$]al bank+ ag5cy def9itions ,! t]ms appropriate ,f$]al bank+ ag5cy & ,f$]al bank+ ag5cy h ! mean+ giv5 ^? t]ms1 respectively1 9 section #c ( ! ,f$]al ,deposit ,insurance ,act4 7#c7 ,insur$ cr$it union ,! t]m insur$ cr$it union has ! mean+ giv5 ! t]m 9 section #aja ( ! ,f$]al ,cr$it ,union ,act4 7#d7 ,insur$ depository in/itution ,! t]m insur$ depository in/itution has ! mean+ giv5 ! t]m 9 section #c ( ! ,f$]al ,deposit ,insurance ,act4 7#e7 ,small-doll> cr$it product ,! t]m small-doll> product means a loan or l9e ( cr$it ) a value ( #c1ejj or less4 4 7b7 ,cl]ical am5dm5t ,! table ( cont5ts = *apt] #a ( ! ,tru? 9 ,l5d+ ,act is am5d$ by /rik+ ! item relat+ to section #aaj & ins]t+ ! foll[+3 #aaj4 ,safe h>bor = ,small-doll> cr$it products4 4 ,,ii ,rectify+ ,undef9$ ,descriptions ( ,abusive ,acts & ,practices #bja4 ,mitigat+ factors 9 assess+ civil p5alties ,section #ajee7;c7 ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eefe7;c77 is am5d$ by add+ at ! end ! foll[+3 7#f7 ,rulemak+ ,! ,bureau %all1 n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is p>agraph1 issue a rule t e/abli%es policies & proc$ures relat+ to ! imposition ( civil monet>y p5alties s\ght "u ?is subsection1 includ+ ! application ( ! mitigat+ factors describ$ 9 p>agraph 7#c74 4 #bjb4 ,rulemak+ relat+ to unfair1 deceptive or abusive acts or practices 7a7 ,9 g5]al ,section #ajca ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeca7 is am5d$ by /rik+ subsection 7b7 & ins]t+ ! foll[+3 7b7 ,rulemak+ 7#a7 ,9 g5]al ,! ,bureau may prescribe rules applicable to a cov]$ p]son or s]vice provid] id5tify+ z unlawful unfair1 deceptive1 or abusive acts or practices 9 connection ) any transaction ) a consum] = a consum] f9ancial product or s]vice1 or ! (f]+ ( a consum] f9ancial product or s]vice4 ,rules "u ?is section may include requirem5ts = ! purpose ( prev5t+ su* acts or practices4 7#b7 ,co/-b5efit analysis requir$ ,any f9al rule issu$ by ! ,bureau relat+ to abusive1 unfair1 or deceptive acts or practices %all include a co/-b5efit analysis4 7#c7 ,def9ition ( abusive act or practice ,! ,bureau %all1 n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is subsection1 issue a rule t def9es ! t]m abusive act or practice = ! purposes ( ?is section4 4 7b7 ,opportunity = comm5t ,! ,bureau ( ,consum] ,f9ancial ,protection %all1 n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is subsection1 all[ ! public to submit comm5ts ) respect to any confusion ab\t h[ ! ,bureau ( ,consum] ,f9ancial ,protection uses its au?ority ) respect to unfair1 deceptive1 or abusive acts or practices4 #bjc4 ,au?ority to decl>e an act unlawful bas$ on discrim9ation or s]vice z gov]nm5t contractor ,section #ajca ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeca7 is am5d$ by add+ at ! end ! foll[+3 7h7 ,au?ority ,to decl>e an act unlawful bas$ on discrim9ation or s]vice z gov]nm5t contractor ,! ,bureau may n int]pret ! au?ority ( ! ,bureau relat+ to unfair1 deceptive1 or abusive acts & practices to include-- 7#a7 discrim9atory practices2 or 7#b7 acts or practices by a cov]$ p]son p]=m+ ! acts or practices pursuant to & 9 compliance ) a contract ) a ,f$]al ag5cy 7z def9$ "u section #gja7;b7 ( title #e1 ,unit$ ,/ates ,code74 4 #bjd4 ,cl>ify+ ! abusive /&>d = ! ,bureau ( ,consum] ,f9ancial ,protection ,section #ajca ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeca7 is am5d$-- 7#a7 by r$esignat+ subsections 7e7 & 7f7 z subsections 7f7 & 7g72 & 7#b7 by /rik+ subsection 7d7 & ins]t+ ! foll[+3 7d7 ,abusive 7#a7 ,9 g5]al ,! ,bureau %all h no au?ority to decl>e an act or practice ( a cov]$ p]son abusive 9 connection ) ! provision ( a consum] f9ancial product or s]vice1 unless ! act or practice-- 7,a7 int5tionally & mat]ially int]f]es ) ! ability ( a consum] to und]/& a t]m or condition ( a consum] f9ancial product or s]vice2 or 7,b7 takes unreasonable advantage (-- 7i7 a lack ( und]/&+ by ! consum] ) respect to ! possible impact1 mat]ial risks1 co/s1 or conditions ( ! product or s]vice1 or ! likelihood ( ! risks1 co/s1 or conditions ( ! product or s]vice negatively affect+ ! consum]2 & 7ii7 ! reasonable reliance ! consum] places on an affirmative action or repres5tation ( su* cov]$ p]son to induce su* consum] to rely on su* action or repres5tation4 7#b7 ,abusive actions ,an act or practice %all n be consid]$ abusive if ! act or practice-- 7,a7 is also unfair or deceptive2 or 7,b7 is o!rwise prohibit$ by ,f$]al consum] f9ancial law4 7e7 ,good-,fai? ef=t ,to comply 7#a7 ,9 g5]al ,! ,bureau may n seek monet>y relief f a cov]$ p]son "u ?is section unless ! cov]$ p]son has n e/abli%$ by a prepond]ance ( ! evid5ce t !y made a good-fai? ef=t to comply4 7#b7 ,au?ority to seek legal or equitable rem$ies ,! limitation describ$ 9 p>agraph 7#a7 %all n re/rict ! au?ority ( ! ,bureau to seek legal or equitable rem$ies1 su* z damages & re/itution1 to r$ress an id5tifiable consum] injury caus$ by ! abusive acts or practices ( su* cov]$ p]son4 4 #bje4 ,notice & opportunity to cure ,section #ajca ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeca71 z am5d$ by section #djc1 is fur!r am5d$ by add+ at ! end ! foll[+3 7i7 ,notice & opportunity ,to cure 7#a7 ,9 g5]al ,if a cov]$ p]son self-id5tifies a pot5tial unfair1 deceptive1 or abusive act or practice c>ri$ out by su* cov]$ p]son1 ! ,bureau %all1 n lat] ?an #ij days aft] su* self-id5tification1 provide a writt5 notice 9 ! =m ( a pot5tial action & reque/ = response lett] or a notice & opportunity to respond & advise lett] ( ! pot5tial unfair1 deceptive1 or abusive act or practice to su* cov]$ p]son & in=m ! cov]$ p]son t su* p]son has #ahj days aft] ! date ! cov]$ p]son receives su* notice to cure su* pot5tial unfair1 deceptive1 or abusive act be=e ! ,bureau may pursue o!r legal action4 7#b7 ,toll+ ( /atute ( limitations ,any applicable /atute ( limitations t applies to conduct "u :i* ! ,bureau has giv5 notice & an opportunity to cure %all n toll until-- 7,a7 ! cov]$ p]son cures ! pot5tial unfair1 deceptive1 or abusive act or practice & notifies ! ,bureau t su* act or practice has be5 cur$2 7,b7 ! cov]$ p]son notifies ! ,bureau t su* cov]$ p]son w n cure ! act or practice2 or 7,c7 ! #ahj-;day p]iod to cure ends4 4 #bjf4 ,abusive1 unfair1 or deceptive acts or practices en=cem5t actions 7a7 ,actions "u section #ajca ,section #ajca ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeca71 z am5d$ by section #dje1 is fur!r am5d$ by add+ at ! end ! foll[+3 7j7 ,unfair1 deceptive1 or abusive acts or practices en=cem5t actions ,en=cem5t actions br\ght by ! ,bureau "u ?is section %all be br\ght 9-- 7#a7 ! ,unit$ ,/ates di/rict c\rt locat$ :]e ! cov]$ p]son has its headqu>t]s location2 or 7#b7 ! ,unit$ ,/ates ,di/rict ,c\rt = ! ,di/rict ( ,columbia4 7k7 ,en=cem5t ,actions 7#a7 ,9 g5]al ,if ! ,bureau br+s an en=cem5t action "u ?is section1 ! ,bureau %all /ate ) p>ticul>ity ! circum/ances t ! ,bureau alleges con/itute a violation ( ?is section4 7#b7 ,alt]native claims ,if ! ,bureau br+s an en=cem5t action "u ?is section-- 7,a7 claim+ t an activity is unfair or deceptive1 ! ,bureau may n claim 9 ! alt]native t ! activity is abusive2 & 7,b7 claim+ t an activity is abusive1 ! ,bureau may n claim 9 ! alt]native t ! activity is unfair or deceptive4 4 7b7 ,cl]ical am5dm5t ,! table ( cont5ts 9 section #a7;b7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act is am5d$ by ins]t+ aft] ! item relat+ to section #ajeh ! foll[+3 ,sec4 #ajei4 ,unfair1 deceptive1 or abusive acts or practices en=cem5t actions4 4 #bjg4 ,look-back provisions = ! ,bureau ( ,consum] ,f9ancial ,protection 7a7 ,9 g5]al ,subtitle ,b ( title ,x ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeaa et seq47 is am5d$ by add+ at ! end ! foll[+ new section3 #ajbi;,b4 ,exam9ation p]iod limitations 7a7 ,9 g5]al ,:5 en=c+ ,f$]al consum] f9ancial laws1 ! ,bureau may n seek a civil money p5alty = any violation t occurr$ prior to ! mo/ rec5t assignm5t ( a consum] compliance rat+ t _h n be5 id5tifi$ 9 writ+ z a mat]ial f9d+ or sup]visory conc]n at ! "t ! rat+ 0 assign$4 7b7 ,exception 9 cases ( fraud or a mat]ial misrepres5tation ,subsection 7a7 %all n apply to a violation t involv$ fraud or a mat]ial misrepres5tation4 7c7 ,rule ( con/ruction ,! limitation describ$ 9 subsection 7a7 may n be con/ru$ to re/rict ! ability ( ! ,bureau to seek o!r =ms ( legal or equitable relief available "u subp>agraphs 7,a7 ?r\gh 7,g7 ( section #ajee7;a77#b74 4 7b7 ,cl]ical am5dm5t ,! table ( cont5ts 9 section #a7;b7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act is am5d$ by ins]t+ aft] ! item relat+ to section #ajbi ! foll[+3 ,sec4 #ajbi;,b4 ,exam9ation p]iod limitations1 4 ,,iii ,small ,l5d]s ,exempt f ,new ,data & ,excessive ,report+ #cja4 ,small bus9ess loan data collection ,section #gjd;,b ( ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c-#b7 is am5d$-- 7#a7 9 subsection 7g71 by add+ at ! end ! foll[+3 7#d7 ,compliance 7,a7 ,9 g5]al ,) respect to any rules or guidance issu$ "u ?is subsection on or aft] ! date ( ! enactm5t ( ?is p>agraph1 ! ,bureau %all provide a f9ancial in/itution a #c-ye> p]iod to comply ) su* rule or guidance1 reg>dless ( ! date on :i* su* f9ancial in/itution began its op]ations4 7,b7 ,safe h>bor ,) respect to any rules or guidance issu$ "u ?is subsection on or aft] ! date ( ! enactm5t ( ?is p>agraph1 beg9n+ on ! date aft] ! la/ day ( ! #c-ye> p]iod describ$ 9 subp>agraph 7,a71 ! ,bureau %all provide a #b-ye> safe h>bor to f9ancial in/itutions dur+ :i* ea* su* f9ancial in/itution is requir$ to comply ) ! rule or guidance b n subject to any p5alties = failure to comply4 2 & 7#b7 9 subsection 7h7-- 7,a7 by /rik+ p>agraph 7#a7 & ins]t+ ! foll[+3 7#a7 ,f9ancial in/itution ,! t]m f9ancial in/itution means-- 7,a7 any p>tn]%ip1 company1 corporation1 association 7incorporat$ or un9corporat$71 tru/1 e/ate1 coop]ative organization1 or o!r entity t engages 9 any f9ancial activity2 & 7,b7 9 ea* ( ! two cal5d> ye>s prec$+ ! fir/ day ( ! safe h>bor p]iod describ$ 9 subsection 7g77#d77;,b71 orig9at$ n less ?an #ejj cr$it transactions = small bus9esses4 2 & 7,b7 by /rik+ p>agraph 7#b7 & ins]t+ ! foll[+3 7#b7 ,small bus9ess ,! t]m small bus9ess means any entity ) gross annual rev5ues ( #a1jjj1jjj or less 9 ! mo/ rec5tly complet$ fiscal ye> prec$+ ! fir/ day ( ! safe h>bor p]iod describ$ 9 subsection 7g77#d77;,b74 4 ,,iv ,bank ,loan ,privacy #dja4 ,rulemak+ requirem5t ,section #gjd;,b7e77#d7 ( ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c-#b7;e77#d77 is am5d$-- 7#a7 by /rik+ ,! ,bureau may1 & ins]t+3 7,a7 ,9 g5]al ,! ,bureau may1 2 & 7#b7 by add+ at ! end ! foll[+3 7,b7 ,rulemak+ requirem5t ,! ,bureau %all1 be=e delet+ or modify+ data "u ?is p>agraph issue1 ?r\gh advance notice & comm5t1 a rule t includes a description ( :at modifications & deletions ! ,bureau int5ds to make to ! data & h[ su* modifications & deletions w advance a privacy int]e/4 4