H.R. 9469
Outcomes-Based Financing (OBF) for Students Act
Sponsor: Erin Houchin
1 cosponsor
Official summary
No official summary yet.
Text of the bill
I Tax treatment of OBF products
II Disclosures applicable to OBF products
(a) Advertising of downpayments and installments. Section 142 of the Truth in Lending Act (15 U.S.C. 1662) is amended—
(1) in the matter preceding paragraph (1), by striking state and inserting state—;
(2) in paragraph (1), by striking the period and inserting a semicolon;
(3) in paragraph (2), by striking the period and inserting ; and; and
(4) by adding at the end the following:
(3) with respect to an OBF product, that a specific OBF payment calculation method, OBF duration, OBF maximum number of payments, or income threshold can be arranged, unless the OBF provider usually and customarily arranges OBF products pursuant to the terms so advertised.
(b) Advertising of a credit other than open end plans. Section 144 of the Truth in Lending Act (15 U.S.C. 1664) is amended by adding at the end the following:
(f) Outcomes-Based Financing Products
(1) Definitions. In this subsection, the terms OBF product, income threshold, OBF duration, OBF maximum number of payments, and OBF payment calculation method have the meanings given those terms in subsection 1650(h).
(2) Application. This subsection shall apply to any advertisement of any OBF product subject to the provisions of this chapter.
(3) Disclosure of key terms. If any advertisement to which this section applies states the OBF payment calculation method, OBF duration, OBF maximum number of payments, income threshold, or amounts of payments under an OBF product, the advertisement shall include each of the following:
(A) The OBF payment calculation method.
(B) The OBF duration.
(C) The OBF maximum number of payments.
(D) The income threshold.
III Consumer protections for OBF products
IV Other clarifications to support OBF products