H.R.1214 – cash advance Reform Act of 2009 111th Congress

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• Finance and Financial Sector
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Text: H.R.1214 — 111th Congress (2009-2010) All Information (Except Text)

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Shown Right Right Here: Introduced in Home (02/26/2009)

To amend the facts in Lending Act to determine payday that is additional disclosure demands along with other defenses for customers, as well as other purposes.

February 26, 2009

Mr. Gutierrez (for himself, Mr. Towns , Mr. Meeks of New York, Mr. Clay , and Mr. Scott of Georgia) introduced the following bill; that has been introduced towards the Committee on Financial solutions

To amend the facts in Lending Act to determine payday that is additional disclosure demands along with other protections for customers, as well as other purposes.

SECTION 1. Brief name .

This Act are cited because the “Payday Loan Reform Act of 2009”.

SEC. 2. cash advance disclosures and customer defenses .

(a) In basic .—Chapter 2 regarding the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by placing after area 129A the next brand new part:

“SEC. 129B. Mandatory disclosures; extended repayment plan; along with other defenses for customers .

“(a) Mandatory disclosures for payday advances .—No creditor could make a cash advance to a customer unless—

“(1) the creditor has first supplied the buyer with a duplicate of the penned loan contract, which will be finalized by the creditor and also by the customer and shall are the after information in English plus in the language when the loan ended up being negotiated:

“(A) an obvious and conspicuous description associated with regards to the mortgage, such as the total price of all costs as well as other costs regarding the the loan stated both as a buck quantity so when a apr, as well as the consumer’s payment obligations beneath the loan;

“(B) The title, target and phone number regarding the creditor making the mortgage, in addition to title of name associated with the employee that is individual of creditor whom signs the mortgage contract with respect to the creditor;

“(C) the next statements, in at the very least 14-point bold face kind:

“(i) ‘WARNING: This loan just isn’t meant to satisfy long-lasting economic requirements. This loan should always be utilized and then satisfy cash that is short-term. The expense of this loan may be greater than loans provided by other financing organizations.’

“(ii) ‘CREDIT COUNSELING SUPPLY: You should think about calling a completely independent, non-profit credit guidance agency authorized by the National Foundation for Credit Counseling (NFCC) or by a situation or government agency. You might get information about how to get hold of an authorized therapist in your area by calling NFCC at 1–800–388–2227.’

“(iii) ‘NO UNLAWFUL PROSECUTION OR SAFETY INTEREST: you can not be prosecuted in criminal court to gather this loan, plus the creditor may well not just just take or try to just simply take a pursuit in just about any of one’s individual home to secure their loan.’

“(iv) ‘INTEREST-FREE EXTENDED REPAYMENT PLAN:’

“(we) that you repay the mortgage as agreed underneath the payment plan.‘If you will be struggling to repay your loan when due, you could elect once every six months to settle your loan to your creditor simply by using a protracted payment plan that will enable you to definitely repay your loan in at the very least 6 substantially equal installments as described further below without any extra finance fees, interest charges, or any other fees of payday loans LA any sort, to your level’

“(II) ‘To obtain a protracted payment plan, you shall advise the creditor no later on than 7 calendar times following the loan deadline you want to get into a prolonged payment plan by going back to any office where you obtained the mortgage or through the use of whatever other technique you utilized to get the loan, such as for example by Web, telephone or fax, and you also must quickly signal an amendment to your loan contract showing the brand new repayment routine.’

“(III) ‘The 6-month period during which you might elect to make use of a long payment plans is calculated through the date you completely spend all amounts off due under 1 extensive payment plan before the date which you enter another extensive payment plan.’