Prohibits an insured depository institution from making: (1) payday loans; and (2) any loan to any lender in order to either finance, refinance, or extend a payday loan.
Amends the Consumer Credit Protection Act to redefine credit to include a payday loan.
Amends the Truth in Lending Act to prohibit a creditor from making a payday loan if the creditor has reasonable cause to believe that: (1) the personal check or share draft received in exchange for such loan is drawn upon either an insured depository institution or insured credit union; or (2) the account debited in exchange for such loan is a transaction or share draft account at an insured depository institution or an insured credit union.
Sets forth civil liabilities for violations of this Act.