H.R.1319 - Payday Borrower Protection Act of 2001107th Congress (2001-2002)
Summary: H.R.1319 — 107th Congress (2001-2002)
Payday Borrower Protection Act of 2001 - Amends the Truth in Lending Act with respect to any deferred deposit loan (payday loan) in which credit is extended by a payday lender, for a specified period of time, upon the lender's receipt of: (1) a check made by the borrower for the amount of the credit extended, the presentment or negotiation of which will be deferred by agreement of the parties for such specified period; or (2) authorization from the borrower for the payday lender to initiate an electronic fund transfer at the end of the specified period from the borrower's account for the amount of the credit extended.
Introduced in House (03/29/2001)
Prohibits the business of making payday loans in any State unless expressly authorized by State law meeting the requirements of this Act.
Amends the Federal Deposit Insurance Act to prohibit insured depository institutions from making: (1) payday loans except in full compliance with State law and at an interest rate less than 36 percent; or (2) any loan to a payday lender to finance payday loans unless that lender is in full compliance with specified Federal and State law.
Sets forth State licensing and regulatory procedure requirements for payday loans, including the provision of civil and criminal penalties for violations.