Purpose: To ensure that disabled veterans have access to affordable loan options and are not discriminated against by financial institutions.
Section 1: Maximum Interest Rate
(a) All financial institutions that provide loans to disabled veterans shall not charge an interest rate higher than 1% per annum on such loans.
(b) This provision applies to all types of loans, including personal loans, mortgages, and vehicle financing.
Section 2: Non-Discrimination in Lending
(a) Financial institutions shall be prohibited from denying loans to veterans based solely on their status as a disabled veteran.
(b) Any denial of a loan application from a disabled veteran must be based on reasonable credit criteria unrelated to their veteran status or disability.
Section 3: Implementation and Oversight
(a) The Consumer Financial Protection Bureau (CFPB) shall be responsible for overseeing compliance with this Act and ensuring that financial institutions adhere to the provisions outlined herein.
(b) Financial institutions must provide clear documentation of the interest rates and terms offered to disabled veterans upon loan application and approval.
Section 4: Penalties for Non-Compliance
(a) Financial institutions found in violation of this Act shall be subject to penalties, including fines and potential loss of federal funding or contracts.
(b) Affected veterans shall have the right to file complaints with the CFPB regarding any violations of this Act.