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I
116TH CONGRESS
1ST SESSION H. R. 4544
To amend the Truth in Lending Act to prohibit predispute arbitration agree-
ments that force arbitration of disputes arising from private education
loans, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 27, 2019
Ms. DEAN introduced the following bill; which was referred to the Committee
on Financial Services
A BILL
To amend the Truth in Lending Act to prohibit predispute
arbitration agreements that force arbitration of disputes
arising from private education loans, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Ensuring Fair Legal
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Recourse for Private Student Loan Borrowers Act’’.
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•HR 4544 IH
SEC. 2. ARBITRATION OF PRIVATE EDUCATION LOAN DIS-
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PUTES.
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(a) IN GENERAL.—Section 140 of the Truth in Lend-
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ing Act (15 U.S.C. 1650) is amended by adding at the
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end the following:
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‘‘(h) ARBITRATION OF PRIVATE EDUCATION LOAN
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DISPUTES.—
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‘‘(1) NO VALIDITY OR ENFORCEABILITY.—No
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predispute arbitration agreement or predispute joint-
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action waiver shall be valid or enforceable with re-
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spect to a dispute relating to a private education
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loan.
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‘‘(2) DEFINITIONS.—In this subsection:
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‘‘(A) PREDISPUTE
ARBITRATION
AGREE-
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MENT.—The term ‘predispute arbitration agree-
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ment’ means an agreement to arbitrate a dis-
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pute that has not yet arisen at the time of the
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making of the agreement.
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‘‘(B) PREDISPUTE
JOINT-ACTION
WAIV-
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ER.—The term ‘predispute joint-action waiver’
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means an agreement, whether or not part of a
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predispute arbitration agreement, that would
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prohibit, or waive the right of, one of the par-
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ties to the agreement to participate in a joint,
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class, or collective action in a judicial, arbitral,
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administrative, or other forum, concerning a
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dispute that has not yet arisen at the time of
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the making of the agreement.’’.
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(b) EFFECTIVE DATE.—The amendment made by
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subsection (a) shall take effect on the date of enactment
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of this Act and shall apply with respect to any dispute
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or claim that arises or accrues on or after such date.
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Æ
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