PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Subcommittee on Housing and Community Opportunity.
Congressional Research Service
Version 00 · Introduced in House · Mar 16, 2004
Prohibit Predatory Lending Act - Amends the Truth in Lending Act in connection with consumer credit cost disclosure to redefine: (1) the formula used to adjust certain percentage points in connection with a consumer credit transaction secured by the consumer's principal dwelling; and (2) related points and fees.
Sets forth a formula to calculate: (1) points and fees for open-end loans; and (2) bona fide discount points and prepayment penalties.
Revises requirements for: (1) prepayment penalties; (2) balloon payments; and (3) extension of credit without regard to consumer's payment ability.
Showing the opening paragraphs of the official summary.
Prohibits in connection with high-cost mortgages: (1) a creditor from recommending a default on an existing debt prior to and in connection with the closing of a high-cost mortgage that refinances all or any portion of such existing loan or debt; (2) specified late fees; (3) certain accelerations of debt; (4) certain evasions, structuring of transactions, and reciprocal arrangements; (5) certain modification and deferral fees; and (6) mandatory arbitration or other nonjudicial procedures.
Mandates pre-loan counseling as a prerequisite for a high-loan mortgage.
Revises guidelines governing creditor liability for correction of errors. Doubles civil money penalties for certain violations.
Extends to three years the statute of limitations for violation of certain statutory disclosure requirements.
Prohibits a creditor from knowingly or intentionally engaging in the unfair act or practice of flipping (the making of a loan or extension of credit to a consumer which refinances an existing mortgage when the new loan or credit extension does not have reasonable, tangible net benefit to the consumer, considering all of the circumstances, including the terms of both the new and the refinanced loans or credit, the cost of the new loan or credit, and the consumer's circumstances).
Prohibits single premium credit insurance.
People & committees
Rep. Miller, Brad [D-NC-13] · D–NC
Legislative record
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Referred to the Subcommittee on Housing and Community Opportunity.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Referred to the House Committee on Financial Services.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Aug 18, 2025. Consult Congress.gov for the current record.
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