South OC Times

The House Financial Services Committee has approved two bills proposed by U.S. Representative Young Kim (CA-40). These legislative measures aim to assist American consumers and reduce federal bureaucracy.

The first bill, known as the Reviewing the Expansion of Government (REG) Act (H.R. 7030), was incorporated into the SEC Reform and Restructuring Act (H.R. 8339). Its purpose is to combat overregulation at the Securities and Exchanges Commission (SEC).

The second bill, titled the Clarity in Lending Act (H.R. 8338), comprises several bills including the Small Dollar Loan Certainty Act (H.R. 8356). This legislation seeks to enhance access to small-dollar loans for consumers and small businesses.

Rep. Kim stated, “Small business owners and taxpayers cannot afford more out-of-touch policies that put the American dream out of reach.” She expressed gratitude towards her colleagues on the House Financial Services Committee for supporting her "commonsense bills" designed to cut through red tape and expand access to capital. She vowed to continue pushing these bills forward "to make life affordable and keep the American dream alive for future generations.”

The REG Act aims to counter overregulation and ensure rules are effective without harming small businesses. It mandates that the SEC:

- Review final rules and regulations every five years;

- Determine whether revision or repeal of a rule is necessary or appropriate to fulfill the SEC’s three-part mission;

- Establish a plan to carry out the rule review process;

- Report to Congress with findings on the review process;

- Consider the cumulative costs of rules and regulations.

Meanwhile, The Small Dollar Loan Certainty Act proposes amendments to the Truth in Lending Act, allowing insured depository institutions or Federal credit unions – termed as covered entities – to offer small-dollar credit products to consumers by:

- Establishing requirements for providing small-dollar installment loans and lines of credit;

- Compelling the use of a robust underwriting process to determine creditworthiness;

- Requiring funds to be distributed to consumers within five days of approval;

- Banning fees against consumers associated with a small-dollar credit product;

- Creating a safe harbor for covered entities that comply with this bill.