[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3334 Introduced in Senate (IS)]
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115th CONGRESS
2d Session
S. 3334
To amend section 987 of title 10, United States Code, to expand and
improve consumer credit protections for members of the Armed Forces and
their dependents, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 1, 2018
Mr. Nelson introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend section 987 of title 10, United States Code, to expand and
improve consumer credit protections for members of the Armed Forces and
their dependents, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Military Lending Improvement Act of
2018''.
SEC. 2. EXPANSION AND IMPROVEMENT OF CONSUMER CREDIT PROTECTIONS FOR
MEMBERS OF THE ARMED FORCES.
(a) Extension of Applicability to Individuals Recently Discharged
or Released From the Armed Forces.--Paragraph (1) of subsection (i) of
section 987 of title 10, United States Code, is amended to read as
follows:
``(1) Covered member.--The term `covered member' means the
following:
``(A) A member of the armed forces who is--
``(i) on active duty under a call or order
that does not specify a period of 30 days or
less; or
``(ii) on active Guard and Reserve duty.
``(B) An individual who was separated, discharged,
or released from duty described in subparagraph (A),
but only during the 365-day period beginning on the
date of separation, discharge, or release.''.
(b) Decrease in Maximum Authorized Annual Percentage Rate on
Credit.--
(1) Decrease in rate.--Subsection (b) of such section is
amended by striking ``36 percent'' and inserting ``24
percent''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 180 days after the date
of the enactment of this Act, and shall apply with respect to
consumer credit extended on or after such effective date.
(c) Prohibition on Creditor Use of Auto Tracking or Kill
Switches.--Subsection (e) of such section is amended--
(1) in paragraph (6), by striking ``or'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(8) the creditor demands, as a condition for the credit,
the application of--
``(A) a device that can locate or adjust the
operations of the borrower's motor vehicle by a third
party; or
``(B) any other device or instrument that may pose
a safety hazard or compromise the borrower's privacy,
as determined by the Secretary of Defense, in
consultation with the Federal Trade Commission.''.
(d) Extension of Coverage to Credit for Cars and Other Personal
Property.--
(1) Coverage.--Subsection (i)(6) of such section is amended
by striking ``(A) a residential mortgage'' and all that follows
and inserting ``a residential mortgage.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 180 days after the date
of the enactment of this Act, and shall apply with respect to
consumer credit extended on or after such effective date.
(e) Regulations.--The Secretary of Defense shall modify the
regulations prescribed to carry out section 987 of title 10, United
States Code, to take into account the amendments made by subsections
(a) through (d) by not later than 180 days after the date of the
enactment of this Act.
SEC. 3. ENHANCED PROTECTION AGAINST DEBT COLLECTOR HARASSMENT OF
MEMBERS OF THE ARMED FORCES.
(a) Communication in Connection With Debt Collection.--Section 805
of the Fair Debt Collection Practices Act (15 U.S.C. 1692c) is amended
by adding at the end the following:
``(e) Communications Concerning Servicemember Debts.--
``(1) Definition.--In this subsection, the term `covered
member' has the meaning given the term in section 987(i) of
title 10, United States Code.
``(2) Prohibition.--A debt collector may not communicate,
in connection with the collection of any debt, with the
commanding officer or officer in charge of any covered member,
including for the purpose of acquiring location information
about the covered member.''.
(b) False or Misleading Representations.--Section 807 of the Fair
Debt Collection Practices Act (15 U.S.C. 1692e) is amended by adding at
the end the following:
``(17) The false representation to any covered member, as
defined in section 987(i) of title 10, United States Code, that
failure to cooperate with a debt collection will result in
prosecution under chapter 47 of title 10, United States Code
(the Uniform Code of Military Justice).''.
SEC. 4. DATA PROTECTION STANDARDS FOR CREDIT REPORTING AGENCIES THAT
USE DEPARTMENT OF DEFENSE PERSONNEL DATA.
(a) Determination on Adequacy of Data Protection Standards.--Not
later than one year after the date of the enactment of this Act, the
Secretary of Defense shall, in consultation with the Federal Trade
Commission, determine whether or not each entity that downloads
Military Lender Act bulk data from the Defense Manpower Data Center
uses adequate safeguards to protect the downloaded data against breach
or other potential misuse. The Secretary shall make the determination
using a study of the practices of such entities conducted by the
Secretary for purposes of this subsection.
(b) Termination of Access to Bulk Data.--If pursuant to subsection
(a), the Secretary determines that the safeguards of an entity
described in that subsection are not adequate as described in that
subsection, the Secretary shall terminate the access of the entity to
bulk data described in that subsection by not later than 30 days after
the date of the determination.
(c) Restoration of Access to Bulk Data.--If access of an entity to
bulk data is terminated pursuant to subsection (b), the Secretary may
subsequently restore access of the entity to bulk data if the Secretary
determines that the entity has taken remedial measures to ensure that
any data downloaded from such bulk data is adequately protected against
breach or other potential misuse.
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