Sponsors (16)
Official title: Amend the Truth in Lending Act to extend the consumer credit protections provided to members of the Armed Forces and their dependents under title 10, United States Code, to all consumers.
Introduced February 5, 2026 by John F. Reed · Last progress February 5, 2026
The bill curbs predatory high-cost consumer lending and strengthens state enforcement and disclosure, but may tighten credit availability, leave mortgages and auto loans uncapped, create uneven treatment for some lenders, and raise regulatory costs.
All consumers, especially low-income individuals: Caps interest rates and extends Military Lending Act-style protections to most consumer loans, reducing exposure to predatory high-cost lending.
State governments and consumers: Preserves stronger State consumer-protection laws and explicitly allows State enforcement actions, maintaining local remedies and oversight.
Consumers with credit cards, particularly those receiving non-recurring fees: Aligns APR calculation with DoD rules by excluding certain bona fide non-periodic fees, improving clarity of cost disclosure.
Low- and middle-income borrowers: Lenders may tighten underwriting or reduce credit supply in response to caps, making credit harder or more expensive for some consumers.
Homebuyers and auto purchasers: Mortgage and typical auto-purchase loans remain outside the rate cap, so these borrowers may still face high rates.
Federal credit unions and comparable lenders: Federal credit unions subject to existing statutory limits are exempt from the new cap, creating uneven treatment across similar lenders.
Based on analysis of 2 sections of legislative text.
Extends Military Lending Act-style interest-rate caps and fee limits to most consumer credit, with narrow exceptions, and requires CFPB rulemaking.
Extends the core protections and interest-rate limits of the Military Lending Act to apply to almost all consumer credit, effectively capping rates and banning many fees for ordinary consumers (with narrow exceptions for mortgages, vehicle-secured purchase loans, and some federal credit union loans). The CFPB must issue implementing rules within one year consistent with Department of Defense rules; the new restrictions apply to extensions of credit after the CFPB rule compliance effective date or 18 months after enactment, whichever is earlier.