To amend the Truth in Lending Act to prohibit the distribution of any check or other negotiable instrument as part of a solicitation by a creditor for an extension of credit, to limit the liability of consumers in conjunction with such solicitations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Deceptive Loan Check Elimination Act''.
SEC. 2. UNSOLICITED LOAN CHECKS PROHIBITED.
(a) In General.--Section 132 of the Truth in Lending Act (15 U.S.C. 1642) is amended-- (1) by inserting ``(a) In General.--'' before ``No credit''; and (2) by adding at the end the following: ``(b) Unsolicited Loan Checks Prohibited.--No person may extend any consumer credit which is otherwise subject to this title through the use by the consumer of a check, other negotiable instrument, or such other similar product as the Bureau may, by rule, determine, that the creditor has sent to the consumer in connection with a solicitation by the creditor for an extension of consumer credit, unless the consumer submitted a written application for, or otherwise requested in writing, the extension of credit before the date on which the creditor sent the check, negotiable instrument, or other similar product. ``(c) `Look-Alike' Checks.--A certificate, voucher, or other nonnegotiable instrument provided to a consumer in connection with a solicitation for an extension of credit that has the appearance of a check or other...