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United States Code (Last Updated: May 24, 2014) |
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Title 12. BANKS AND BANKING |
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Chapter 53. WALL STREET REFORM AND CONSUMER PROTECTION |
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SubChapter VII. IMPROVING ACCESS TO MAINSTREAM FINANCIAL INSTITUTIONS |
§ 5624. Low-cost alternatives to small dollar loans
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(a) Grants authorized The Secretary is authorized to establish multiyear demonstration programs by means of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings, with eligible entities to provide low-cost, small loans to consumers that will provide alternatives to more costly small dollar loans.
(b) Terms and conditions (1) In general Loans under this section shall be made on terms and conditions, and pursuant to lending practices, that are reasonable for consumers.
(2) Financial literacy and education opportunities (A) In general Each eligible entity awarded a grant under this section shall promote and take appropriate steps to ensure the provision of financial literacy and education opportunities, such as relevant counseling services, educational courses, or wealth building programs, to each consumer provided with a loan pursuant to this section.
(B) Authority to expand access As part of the grants, agreements, and undertakings established under this section, the Secretary may implement reasonable measures or programs designed to expand access to financial literacy and education opportunities, including relevant counseling services, educational courses, or wealth building programs to be provided to individuals who obtain loans from eligible entities under this section.