Justice for Student Borrowers Act
This bill prohibits a predispute arbitration agreement from being valid or enforceable if it requires arbitration of a dispute relating to a private education loan.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1023 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1023
To amend title 9 of the United States Code to prohibit predispute
arbitration agreements that force arbitration of disputes arising from
private education loans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 11, 2021
Ms. Scanlon (for herself, Mr. Nadler, Mr. Cicilline, Mrs. Demings, Mr.
Raskin, Mr. Carson, Ms. Lee of California, Mr. Aguilar, Mr. Evans, Ms.
Brownley, Mr. Johnson of Georgia, and Ms. Jayapal) introduced the
following bill; which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 9 of the United States Code to prohibit predispute
arbitration agreements that force arbitration of disputes arising from
private education loans, 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 ``Justice for Student Borrowers Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to--
(1) prohibit private educational lenders from using
predispute arbitration agreements in their private education
loans; and
(2) to prohibit private educational lenders from using
predispute joint-action waivers in their private education
loans.
SEC. 3. ARBITRATION OF PRIVATE EDUCATION LOAN DISPUTES.
(a) In General.--Title 9 of the United States Code is amended by
adding at the end the following:
``CHAPTER 4--ARBITRATION OF PRIVATE EDUCATION LOAN DISPUTES
``401. Definitions.
``402. No validity or enforceability.
``Sec. 401. Definitions
``In this chapter--
``(1) the term `private education loan' has the meaning
given that term under section 140 of the Truth in Lending Act;
``(2) the term `predispute arbitration agreement' means an
agreement to arbitrate a dispute that has not yet arisen at the
time of the making of the agreement; and
``(3) the term `predispute joint-action waiver' means an
agreement, whether or not part of a predispute arbitration
agreement, that would prohibit, or waive the right of, one of
the parties to the agreement to participate in a joint, class,
or collective action in a judicial, arbitral, administrative,
or other forum, concerning a dispute that has not yet arisen at
the time of the making of the agreement.
``Sec. 402. No validity or enforceability
``(a) In General.--Notwithstanding any other provision of this
title, no predispute arbitration agreement or predispute joint-action
waiver shall be valid or enforceable with respect to a dispute relating
to a private education loan.
``(b) Applicability.--
``(1) In general.--An issue as to whether this chapter
applies with respect to a dispute shall be determined under
Federal law. The applicability of this chapter to an agreement
to arbitrate and the validity and enforceability of an
agreement to which this chapter applies shall be determined by
a court, rather than an arbitrator, irrespective of whether the
party resisting arbitration challenges the arbitration
agreement specifically or in conjunction with other terms of
the contract containing such agreement, and irrespective of
whether the agreement purports to delegate such determinations
to an arbitrator.
``(2) Collective bargaining agreements.--Nothing in this
chapter shall apply to any arbitration provision in a contract
between an employer and a labor organization or between labor
organizations, except that no such arbitration provision shall
have the effect of waiving the right of a worker to seek
judicial enforcement of a right arising under a provision of
the Constitution of the United States, a State constitution, or
a Federal or State statute, or public policy arising
therefrom.''.
(b) Technical and Conforming Amendments.--
(1) In general.--Title 9 of the United States Code is
amended--
(A) in section 1 by striking ``of seamen,'' and all
that follows through ``interstate commerce,'' and
inserting in its place ``of individuals, regardless of
whether such individuals are designated as employees or
independent contractors for other purposes'';
(B) in section 2 by inserting ``or as otherwise
provided in chapter 4'' before the period at the end;
(C) in section 208--
(i) in the section heading by striking
``chapter 1; residual application'' and
inserting ``application''; and
(ii) by adding at the end the following:
``This chapter applies to the extent that this
chapter is not in conflict with chapter 4.'';
and
(D) in section 307--
(i) in the section heading by striking
``chapter 1; residual application'' and
inserting ``application''; and
(ii) by adding at the end the following:
``This chapter applies to the extent that this
chapter is not in conflict with chapter 4.''.
(2) Table of sections.--
(A) Chapter 2.--The table of sections of chapter 2
of title 9, United States Code, is amended by striking
the item relating to section 208 and inserting the
following:
``208. Application.''.
(B) Chapter 3.--The table of sections of chapter 3
of title 9, United States Code, is amended by striking
the item relating to section 307 and inserting the
following:
``307. Application.''.
(3) Table of chapters.--The table of chapters of title 9,
United States Code, is amended by adding at the end the
following:
``4. Arbitration of private education loan disputes''.
SEC. 4. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
the date of enactment of this Act and shall apply with respect to any
dispute or claim that arises or accrues on or after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
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