NPA Legislative Alert: Federal Rate Cap Legislation Filed in the House and Senate

November 13, 2019

Last night two federal rate cap bills were filed in the Senate and House and are both cited as the “Veterans and Consumers Fair Credit Act”. As the prior draft language reviewed by NPA’s Government Relations Committee indicated, these bills apply the Military Lending Act (MLA) 36% Annual Percentage Rate Cap to all consumers the same as if they were active duty members of the military, spouses or dependents.

The House bill is listed as H.R. 5050 sponsored by Rep. Jesus Garcia of Illinois. Co-sponsors thus far are Representatives Glenn Grothman-Wisconsin, Sylvia Garcia-Texas, and Al Green-Texas, and is bi-partisan.

A basically identical Senate bill is S. 2833 sponsored by Senator Jeff Merkley-Oregon, and the original co-sponsors are Senators Sherrod Brown-Ohio, Jack Reed-Rhode Island and Chris Van Hollen-Maryland.

So, the rest was brief and our task is before us. NPA’s Team GRC is preparing Talking Points for our members to use in communicating with the offices of their Members of Congress. These will be finalized soon and made available to you.

Thank you to those who have already advised NPA Government Relations Liaison, Fran Bishop of contacts and lines of communication you have with Members of Congress. As we all know from constant media reports there is a lot happening on the Hill. However, as the filing of H.R. 5050 and S. 2833 indicate, there is plenty of attention being paid to other areas.