EQUAL Act of 2018

Ensuring Quality Unbiased Access to Loans Act of 2018 or the EQUAL Act of 2018

This bill nullifies the Federal Deposit Insurance Corporation final guidance titled "Guidance on Supervisory Concerns and Expectations Regarding Deposit Advance Products," published November 26, 2013. (The guidance relates to the safety and soundness of insured depository intuitions offering short-term, small-dollar loans.) Federal banking agencies must issue regulations regarding such loans offered by insured depository institutions.

The bill also exempts certain loans made by a depository institution or a credit union from the Consumer Financial Protection Bureau rule titled "Payday, Vehicle Title, and Certain High-Cost Installment Loans," published on November 17, 2017.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4861 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 4861

To nullify certain guidance on deposit advance products, to require the 
 Federal banking agencies to establish standards for short-term, small-
dollar loans made by insured depository institutions, to exempt insured 
   depository institutions and insured credit unions from the payday 
 lending rule of the Bureau of Consumer Financial Protection, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 19, 2018

Mr. Hollingsworth introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To nullify certain guidance on deposit advance products, to require the 
 Federal banking agencies to establish standards for short-term, small-
dollar loans made by insured depository institutions, to exempt insured 
   depository institutions and insured credit unions from the payday 
 lending rule of the Bureau of Consumer Financial Protection, 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 ``Ensuring Quality Unbiased Access to 
Loans Act of 2018'' or the ``EQUAL Act of 2018''.

SEC. 2. NULLIFICATION OF, AND REQUIREMENTS FOR, GUIDANCE ON DEPOSIT 
              ADVANCE PRODUCTS.

    The final guidance of the Federal Deposit Insurance Corporation 
titled ``Guidance on Supervisory Concerns and Expectations Regarding 
Deposit Advance Products'' (78 Fed. Reg. 70552; November 26, 2013) 
shall have no force or effect.

SEC. 3. SHORT-TERM, SMALL-DOLLAR LOANS.

    (a) In General.--Not later than 24 months after the date of the 
enactment of this Act, the Federal banking agencies shall each issue 
regulations, after providing for public notice and comment, to 
establish standards for short-term, small-dollar loans or lines of 
credit made available by insured depository institutions.
    (b) Considerations.--In issuing regulations to establish standards 
under subsection (a), the Federal banking agencies shall ensure that 
the standards encourage products that are consistent with safe and 
sound banking, provide fair access to financial services, and treat 
customers fairly.
    (c) Coordinated Efforts.--In issuing regulations to establish 
standards under subsection (a), the Federal banking agencies shall 
consult and coordinate with each other.
    (d) Effect on State Law.--Regulations issued under subsection (a) 
shall supersede any State law that sets standards for short-term, 
small-dollar loans or lines of credit made available by insured 
depository institutions.
    (e) Definitions.--For purposes of this section, the terms ``insured 
depository institution'' and ``Federal banking agency'' have the 
meaning given those terms, respectively, under section 3 of the Federal 
Deposit Insurance Act.

SEC. 4. EXEMPTION FROM PAYDAY RULE.

    The rule submitted by the Bureau of Consumer Financial Protection 
relating to ``Payday, Vehicle Title, and Certain High-Cost Installment 
Loans'' (published at 82 Fed. Reg. 54472 (November 17, 2017)) shall not 
apply to--
            (1) a loan made by an insured depository institution (as 
        defined under section 3 of the Federal Deposit Insurance Act) 
        on or after the date that the appropriate Federal banking 
        agency (as defined under section 3 of such Act) issues the 
        regulations described under section 3(a); or
            (2) a loan made by an insured credit union or noninsured 
        credit union (as such terms are defined, respectively, under 
        section 101 of the Federal Credit Union Act).
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