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”.
Ensuring Quality Unbiased Access to Loans Act of 2018
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.
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
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.
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.
Coordinated efforts— In issuing regulations to establish standards under subsection (a), the Federal banking agencies shall consult and coordinate with each other.
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.
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—
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
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).