Annuity Safety and Security Under Reasonable Enforcement Act of 2013 or the ASSURE Act of 2013 - Amends the Truth in Lending Act to direct the Bureau of Consumer Financial Protection (CFPB) to issue regulations requiring any payment to a recipient of a federal or military pension (a benefit recipient) that diminishes the benefit recipient's ability to control payments from such pension to be treated as an extension of credit.
Requires financial institutions to include the terms of such credit in consumer information disclosures.
Prohibits the annual percentage rate of interest on such arrangements from exceeding the federal funds rate plus 6% or an equivalent aggregate amount of cash and property.
Specifies conditions under which payment of consideration in exchange for the retired pay of enlisted military members is prohibited from assignment under veterans' benefits laws.
Prohibits individuals from making allotments or assignments from annuities under the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS), including any agreement under which another person acquires for consideration the right to receive payment from such annuities as well as any arrangement for collateral for security for such an agreement. Exempts union dues or payments to employee organizations from such prohibitions.
Authorizes benefit recipients, individuals entitled to military retired pay, and annuity recipients to bring a private legal action in federal or state court against an assignee engaging in prohibited assignments.
Amends the Consumer Financial Protection Act of 2010 to direct the CFPB to issue regulations requiring persons offering federal or military pension-related products to provide additional disclosures when advertising or selling such products to allow consumers to understand how their pension relates to the product.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3310 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 3310
To provide for additional protections and disclosures to consumers when
financial products or services are related to the consumers' military
or Federal pensions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 23, 2013
Mr. Cartwright (for himself, Mr. Connolly, Mr. Grayson, Mr. Conyers,
Mr. Grijalva, Ms. Kaptur, Ms. Kelly of Illinois, Ms. Lee of California,
Mr. Takano, Ms. Slaughter, Ms. Eddie Bernice Johnson of Texas, Mr.
McGovern, Ms. Shea-Porter, Mr. Moran, Mr. Farr, Mr. Cummings, Mr.
Hinojosa, Mr. Lewis, Mrs. Negrete McLeod, Ms. Speier, Mr. Thompson of
Mississippi, Mr. Langevin, Mr. Blumenauer, Ms. Fudge, Mr. George Miller
of California, Mr. Cohen, Mr. Gene Green of Texas, Ms. DeLauro, Mr.
Enyart, Mr. Pocan, Mr. Lynch, Ms. Hahn, Ms. McCollum, Mr. Waxman, Mr.
Delaney, Mr. Nadler, Ms. Michelle Lujan Grisham of New Mexico, Ms.
Norton, Mrs. Kirkpatrick, and Mr. Lowenthal) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committees on Veterans' Affairs, Armed Services, and
Oversight and Government Reform, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for additional protections and disclosures to consumers when
financial products or services are related to the consumers' military
or Federal pensions, 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 ``Annuity Safety and Security Under
Reasonable Enforcement Act of 2013'' or the ``ASSURE Act of 2013''.
SEC. 2. CONSIDERATION OF FEDERAL AND MILITARY PENSIONS IN EXTENSIONS OF
CREDIT.
The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended--
(1) in section 104(3), by inserting after ``other than''
the following: ``payments described under section 126(a) and'';
(2) by inserting after section 125 the following:
``Sec. 126. Payments in consideration of Federal and military pensions
``(a) Disclosure.--The Bureau shall issue regulations requiring any
payment to a benefit recipient, whether or not such payment is an
extension of credit, that diminishes the benefit recipient's ability to
control the payments from their Federal or military pension in any way,
to be treated as an extension of credit for purposes of the disclosures
required under this title.
``(b) Interest Rate Cap.--With respect to a payment to a benefit
recipient described under subsection (a)--
``(1) if such payment is an extension of consumer credit, a
creditor may not impose an annual percentage rate of interest
greater than the Federal funds rate plus 6 percent; and
``(2) if such payment is not an extension of consumer
credit, the Bureau shall issue regulations requiring that the
aggregate amount of cash and property paid in exchange for such
payment may not exceed an amount that is equivalent to the
interest rate described under paragraph (1).
``(c) Definitions.--For purposes of this section:
``(1) Benefit recipient.--The term `benefit recipient'
means a person who is entitled to payments under a Federal or
military pension.
``(2) Federal or military pension.--The term `Federal or
military pension' means--
``(A) a benefit described under section 5301(a) of
title 38, United States Code;
``(B) retired pay to an enlisted member of the
Army, Navy, Air Force, or Marine Corps; and
``(C) an annuity described under section 8345 or
8465 of title 5, United States Code.
``(3) Federal funds rate.--For purposes of this section,
the term `Federal funds rate' means the Federal funds rate
published in the Federal Reserve Statistical Release on
selected interest rates (daily or weekly), and commonly
referred to as the H.15 release (or any successor
publication).''; and
(3) in the table of contents for chapter 2 of such Act, by
inserting after the item relating to section 125 the following:
``126. Consideration of Federal pensions in extensions of credit''.
SEC. 3. CLARIFICATION OF ASSIGNMENTS; PRIVATE RIGHTS OF ACTIONS.
(a) Veterans Benefits.--Section 5301 of title 38, United States
Code, is amended by adding at the end the following:
``(f) Private Right of Action.--
``(1) In general.--A benefit recipient may bring an action
against a pension assignee in the appropriate Federal or State
court and recover--
``(A) three times the damages suffered due to the
assignment made in violation of this section;
``(B) court costs; and
``(C) reasonable attorneys' fees and expenses.
``(2) Definitions.--For purposes of this subsection:
``(A) Benefit recipient.--The term `benefit
recipient' means a person with respect to which
payments of benefits described under this section are
due or are to become due.
``(B) Pension assignee.--With respect to a benefit
recipient, the term `pension assignee' means a person
who has been assigned the benefits of the benefit
recipient in violation of this section.''.
(b) Military Retired Pay.--Section 701 of title 37, United States
Code, is amended by adding at the end the following:
``(f) Clarification on Non-Assignment of Retired Pay for Enlisted
Members.--
``(1) In general.--For purposes of this subsection (c), in
any case where an enlisted member is entitled to retired pay
and enters into an agreement with another person under which
agreement such other person acquires for consideration the
right to receive payment of such retired pay, whether by
payment from the member to such other person, deposit into an
account from which such other person may make withdrawals, or
otherwise, such agreement shall be deemed to be an assignment
and is prohibited. Any agreement or arrangement for collateral
for security for an agreement that is prohibited under the
previous sentence is also prohibited.
``(2) Private right of action.--
``(A) In general.--A retired pay recipient may
bring an action against a retired pay assignee in the
appropriate Federal or State court and recover--
``(i) three times the damages suffered due
to the assignment of retired pay made in
violation of this section;
``(ii) court costs; and
``(iii) reasonable attorneys' fees and
expenses.
``(B) Definitions.--For purposes of this
subsection:
``(i) Retired pay recipient.--The term
`retired pay recipient' means a person with
respect to which retired pay described under
this section is due or is to become due.
``(ii) Retired pay assignee.--With respect
to a retired pay recipient, the term `retired
pay assignee' means a person who has been
assigned or allotted the retired pay of the
retired pay recipient in violation of this
section.''.
(c) CSRS Annuities.--Section 8345(h) of title 5, United States
Code, is amended to read as follows:
``(h) Non-Assignment of Annuities.--
``(1) In general.--An individual entitled to an annuity
from the Fund may not make allotments or assignments of amounts
from such annuity.
``(2) Construction.--For purposes of this subsection--
``(A) in any case where an individual entitled to
an annuity from the Fund enters into an agreement with
another person under which agreement such other person
acquires for consideration the right to receive payment
of such annuity, whether by payment from the individual
to such other person, deposit into an account from
which such other person may make withdrawals, or
otherwise, such agreement shall be deemed to be an
assignment and is prohibited; and
``(B) any agreement or arrangement for collateral
for security for an agreement that is prohibited under
subparagraph (A) is also prohibited.
``(3) Exception.--Paragraphs (1) and (2) shall not apply to
amounts used to pay dues to unions or other employee
organizations.
``(4) Private right of action.--
``(A) In general.--An annuity recipient may bring
an action against an annuity assignee in the
appropriate Federal or State court and recover--
``(i) three times the damages suffered due
to the assignment made in violation of this
subsection or the regulations issued pursuant
to this subsection;
``(ii) court costs; and
``(iii) reasonable attorneys' fees and
expenses.
``(B) Definitions.--For purposes of this paragraph:
``(i) Annuity assignee.--With respect to an
annuity recipient, the term `annuity assignee'
means a person who has been assigned or
allotted all or part of an annuity from the
Fund in violation of this subsection or the
regulations issued pursuant to this subsection.
``(ii) Annuity recipient.--The term
`annuity recipient' means an individual
entitled to an annuity from the Fund.''.
(d) FERS Annuities.--Section 8465(b) of title 5, United States
Code, is amended to read as follows:
``(b) Non-Assignment of Annuities.--
``(1) In general.--An individual entitled to an annuity
from the Fund may not make allotments or assignments of amounts
from such annuity.
``(2) Construction.--For purposes of this subsection--
``(A) in any case where an individual entitled to
an annuity from the Fund enters into an agreement with
another person under which agreement such other person
acquires for consideration the right to receive payment
of such annuity, whether by payment from the individual
to such other person, deposit into an account from
which such other person may make withdrawals, or
otherwise, such agreement shall be deemed to be an
assignment and is prohibited; and
``(B) any agreement or arrangement for collateral
for security for an agreement that is prohibited under
subparagraph (A) is also prohibited.
``(3) Exception.--Paragraphs (1) and (2) shall not apply to
amounts used to pay dues to unions or other employee
organizations.
``(4) Private right of action.--
``(A) In general.--An annuity recipient may bring
an action against an annuity assignee in the
appropriate Federal or State court and recover--
``(i) three times the damages suffered due
to the assignment made in violation of this
subsection or the regulations issued pursuant
to this subsection;
``(ii) court costs; and
``(iii) reasonable attorneys' fees and
expenses.
``(B) Definitions.--For purposes of this paragraph:
``(i) Annuity assignee.--With respect to an
annuity recipient, the term `annuity assignee'
means a person who has been assigned or
allotted all or part of an annuity from the
Fund in violation of this subsection or the
regulations issued pursuant to this subsection.
``(ii) Annuity recipient.--The term
`annuity recipient' means an individual
entitled to an annuity from the Fund.''.
SEC. 4. BUREAU OF CONSUMER FINANCIAL PROTECTION PROVISIONS.
(a) Regulation of Federal or Military Pension-Related Products.--
Section 1032(f) of the Consumer Financial Protection Act of 2010 (12
U.S.C. 5532(f)) is amended by adding at the end the following:
``(g) Regulation of Federal or Military Pension-Related Products.--
``(1) In general.--The Bureau shall issue regulations to
require a person offering a Federal or military pension-related
product to provide additional disclosures when advertising or
selling such product, sufficient to allow consumers to
understand how their pension relates to the product.
``(2) Definitions defined.--For purposes of this
subsection:
``(A) Federal or military pension.--The term
`Federal or military pension' means--
``(i) a benefit described under section
5301(a) of title 38, United States Code;
``(ii) retired pay to an enlisted member of
the Army, Navy, Air Force, or Marine Corps; and
``(iii) an annuity described under section
8345 or 8465 of title 5, United States Code.
``(B) Federal or military pension-related
product.--The term `Federal or military pension-related
product' means a financial product or service related
to a Federal or military pension, including any
extension of credit if the creditor, when determining a
consumer's ability to repay the extension of credit,
takes the pension into consideration.''.
(b) Study by the Bureau.--
(1) In general.--The Bureau of Consumer Financial
Protection shall carry out a study of financial products and
services that target military retirees and Federal employee
retirees.
(2) Report.--Not later than the end of the 3-month period
beginning on the date of the enactment of this Act, the Bureau
shall issue a report to the Congress containing all findings
and determinations made in carrying out the study required
under this subsection.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committees on Veterans' Affairs, Armed Services, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on Veterans' Affairs, Armed Services, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on Veterans' Affairs, Armed Services, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on Veterans' Affairs, Armed Services, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Economic Opportunity.
Referred to the Subcommittee on Military Personnel.
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Referred to the Subcommittee on Disability Assistance and Memorial Affairs.