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119-hr-10439119th CongressWALLET

Veterans and Consumers Fair Credit Act

Sponsored By: Representative Grothman, Glenn [R-WI-6]

Introduced

Summary

Would extend Military Lending Act protections to all consumers. The bill would add a new section 140B to the Truth in Lending Act that applies MLA rate caps, disclosure rules, and limits on certain fees to non‑military borrowers while keeping a few narrow exemptions.

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  • Families and everyday borrowers: Would cap interest and limit add‑on fees for most consumer credit, and would not apply to residential mortgages or car loans used to buy a car that is the loan’s security. Compliance would begin when the Consumer Financial Protection Bureau issues rules or after 18 months, whichever comes first.
  • Lenders and credit unions: Most creditors would face MLA-style APR calculations and fee limits. Loans made by Federal credit unions are exempt only to the extent they follow existing federal usury limits.
  • State and enforcement authorities: The bill applies federal MLA penalties to violations and preserves state enforcement. State attorneys general and regulators get 3 years to sue and must provide notice so the Bureau can intervene.

The Bureau must issue rules within 1 year in consultation with the Secretary of Defense and may not offer weaker protections than current MLA rules.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Consumer Bureau must write rules

If enacted, the Consumer Financial Protection Bureau would have to issue rules within one year, in consultation with the Secretary of Defense, to put these protections into effect. The Bureau's rules must be at least as protective as the Department of Defense's July 22, 2015 rule. The bill would also stop the Bureau Director from using the general exemption power in section 105(f) to carve out exceptions for this section. The new rules and the 18‑month fallback date set when coverage begins for new credit.

Military-style credit protections for all

If enacted, this would apply the core Military Lending Act protections to consumer loans to the public, not just servicemembers. The bill would let the same penalties and remedies for MLA violations be used against creditors who break these rules. It would not cover home mortgages, car purchase loans that are secured by the vehicle, or certain federal credit union loans under existing usury limits. These protections would apply to credit made after the Bureau's compliance date or 18 months after enactment, whichever is earlier.

State enforcement and stronger protections

If enacted, State attorneys general and state regulators could sue to enforce these rules within three years of a violation. They must give timely notice and a copy of the complaint to the Bureau and the prudential regulator, or immediate notice if prior notice is not practicable. The Bureau could intervene, remove cases to federal court, and appeal orders or judgments. The bill also says it does not preempt any State law that gives consumers greater protection.

New APR and fee rules for cards

If enacted, the bill would change how APR and finance charges are calculated for open-end credit, using TILA section 107(a)(2) with adjustments like the Department of Defense's July 22, 2015 rule. For unsecured credit card accounts, a bona fide non‑periodic fee that meets section 127(n) could be excluded from the finance charge and APR. The exclusion would not apply to credit insurance, single‑premium insurance, debt cancellation or suspension fees, or fees for ancillary credit products sold with the card. These rules would apply to credit made after the Bureau's compliance date or 18 months after enactment.

Sponsors & CoSponsors

Sponsor

Grothman, Glenn [R-WI-6]

WI • R

Cosponsors

  • Rep. García, Jesús G. "Chuy" [D-IL-4]

    IL • D

    Sponsored 9/16/2026

Roll Call Votes

No roll call votes available for this bill.

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