12 U.S.C. § 5624 — Low-cost alternatives to small dollar loans
submitted 16 years ago by Pub. L. 111-203 to r/title-12-BANKS-AND-BANKING · 189 words · no verdicts yet
The Secretary may establish multiyear demonstration programs providing low-cost small loans as alternatives to more expensive small-dollar loans. Recipients must provide financial-literacy and education opportunities.
(a) Grants authorized. The Secretary may establish multiyear demonstration programs through grants, cooperative agreements, financial agency agreements, and similar arrangements with eligible entities to provide consumers low-cost small loans as alternatives to costlier small-dollar loans. (b) Terms. (1) Loans must use reasonable terms, conditions, and lending practices. (2)(A) Each grant recipient must promote and take appropriate steps to ensure that every borrower receives financial-literacy and education opportunities, such as counseling, courses, or wealth-building programs. (B) The Secretary may use these programs and agreements to expand access to those opportunities for people who borrow from eligible entities.
The Secretary is authorized to establish multiyear demonstration programs by means of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings, with eligible entities to provide low-cost, small loans to consumers that will provide alternatives to more costly small dollar loans.
Loans under this section shall be made on terms and conditions, and pursuant to lending practices, that are reasonable for consumers.
Each eligible entity* awarded a grant under this section shall promote and take appropriate steps to ensure the provision of financial literacy and education opportunities, such as relevant counseling services, educational courses, or wealth building programs, to each consumer* provided with a loan pursuant to this section.
As part of the grants, agreements, and undertakings established under this section, the Secretary may implement reasonable measures or programs designed to expand access to financial literacy and education opportunities, including relevant counseling services, educational courses, or wealth building programs to be provided to individuals who obtain loans from eligible entities under this section.
Source credit: (Pub. L. 111–203, title XII, § 1205, July 21, 2010, 124 Stat. 2130.)
- 2010Enacted · Pub. L. 111-203 · 124 Stat. 2130
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 2010-07-21.
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