S. 3793 — Predatory Lending Elimination Act

This section adds a new §140B to the Truth in Lending Act (15 U.S.C. 1631 et seq.) to extend the Military Lending Act's (MLA) 36% annual percentage rate (APR) cap on consumer credit extended to covered members of the armed forces and dependents (10 U.S.C. 987(b)) to all consumers, subject to the same terms, calculation methods (including for open-end credit per DoD rules issued July 22, 2015), disclosures, and penalties as under the MLA. Exceptions include residential mortgages; auto purchase loans secured by the vehicle; and federal credit union loans subject to the 18% rate limit under the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(vi)). (As background, the MLA protects active-duty servicemembers and dependents from high-cost predatory lending.) The section further (1) prohibits Consumer Financial Protection Bureau (CFPB) exemptions; (2) preserves state laws providing greater consumer protection and adds state attorney general and regulator enforcement authority (with three-year statute of limitations); (3) requires CFPB, in consultation with the Department of Defense, to issue consistent implementing regulations within one year of enactment; and (4) applies the amendments to credit extended after the earlier of the regulations' effective date or a specified date.