H.R.2563 - Payday Lending Reform Act of 2009111th Congress (2009-2010)
|Sponsor:||Rep. Shuler, Heath [D-NC-11] (Introduced 05/21/2009)|
|Committees:||House - Financial Services|
|Latest Action:||05/21/2009 Referred to the House Committee on Financial Services.|
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- Finance and Financial Sector
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Summary: H.R.2563 — 111th Congress (2009-2010)All Bill Information (Except Text)
Introduced in House (05/21/2009)
Payday Lending Reform Act of 2009 - Amends the Truth in Lending Act to require a creditor to make specified disclosures when making a payday loan to a consumer.
Prohibits a creditor from making a payday loan to any consumer unless: (1) specified notices are posted conspicuously in the creditor's public lending area, or, if the loan is made using the Internet, fax or other means, posted conspicuously on the creditor's public internet site relating to any such payday loan; and (2) the creditor offers the consumer an extended repayment plan that meets specified requirements.
Sets forth prohibited lender practices, including: (1) requiring a consumer to pay interest and fees that, combined, total more than 20 cents for every dollar loaned in connection with a payday loan; (2) threatening or seeking to have the consumer prosecuted criminally to collect the loan; and (3) taking or attempting to take an interest in any of the consumer's personal property to secure the loan.
Authorizes a consumer to cancel future payment obligations on a payday loan, without cost or finance charges, by: (1) informing the creditor in writing within two days after executing the loan agreement that the consumer wants to rescind the loan; and (2) returning to the creditor the cash amount of the loan principal.