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S. 3734 (115th): Unsolicited Loan Act of 2018

The text of the bill below is as of Dec 10, 2018 (Introduced). The bill was not enacted into law.



2d Session

S. 3734


December 10, 2018

(for himself, Mr. Cotton, and Mr. Merkley) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs


To amend the Truth in Lending Act to prohibit the distribution of any check or other negotiable instrument as part of a solicitation by a creditor for an extension of credit, to limit the liability of consumers in conjunction with such solicitations, and for other purposes.


Short title

This Act may be cited as the Unsolicited Loan Act of 2018.


Unsolicited loan checks prohibited


In general

Section 132 of the Truth in Lending Act (15 U.S.C. 1642) is amended—


by inserting (a) Credit cards.— before No credit; and


by adding at the end the following:


Unsolicited loan checks or transfers

No person may extend any consumer credit that is otherwise subject to this title by—


making an unsolicited transfer of funds to the consumer’s credit or asset account; or


through the consumer’s use of an unsolicited check, other negotiable instrument, access device or other means of initiating an electronic fund transfer as defined in section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a), or such other similar instrument or device as the Bureau may, by rule, determine, that is sent to the consumer unless the consumer submitted a written application for, or otherwise requested in writing, the extension of credit before the date on which the creditor sent the check, negotiable instrument, access device or other similar instrument or device.


Look-alike checks

A certificate, voucher, or other nonnegotiable instrument provided to a consumer in connection with a solicitation for an extension of credit that has the appearance of a check or other negotiable instrument is not an application or request for an extension of credit for purposes of this section.


Liability of consumer



In this subsection, the terms consumer, consumer reporting agency, and consumer report have the meanings given the terms in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a).


Agreement void

Any purported credit agreement entered into or debt purportedly incurred as a result of a violation of subsection (a) or (b) is void and the consumer or cardholder shall not be liable for and no person shall attempt to collect—


the principal amount sent or transferred to the consumer in violation of this section; or


any interest, charge, fee, or penalty.


Consumer reporting

No information relating to the liability of a consumer alleged by a creditor to have been established in violation of subsection (a) or (b) may be reported to or received by any consumer reporting agency or included in any consumer report.



Not later than 6 months after the date of enactment of the Deceptive Loan Check Elimination Act, the Bureau shall prescribe final regulations to implement this section.



Clerical amendment

The item relating to section 132 in the table of sections for chapter 2 of the Consumer Credit Protection Act is amended to read as follows:

132. Unsolicited credit..


Effective date

The requirements of this Act and the amendments made by this Act shall apply to solicitations for extensions of credit made to consumers 180 days after the date of enactment of this Act.