20 USC 9703 - Duties of the Commission

U.S Code last checked for updates: May 05, 2024

§ 9703.

Duties of the Commission

(a)

Duties

(1)

In general

(2)

Areas of emphasis

To improve financial literacy and education, the Commission shall emphasize, among other elements, basic personal income and household money management and planning skills, including how to—

(A)

create household budgets, initiate savings plans, and make strategic investment decisions for education, retirement, home ownership, wealth building, or other savings goals;

(B)

manage spending, credit, and debt, including credit card debt, effectively;

(C)

increase awareness of the availability and significance of credit reports and credit scores in obtaining credit, the importance of their accuracy (and how to correct inaccuracies), their effect on credit terms, and the effect common financial decisions may have on credit scores;

(D)

ascertain fair and favorable credit terms;

(E)

avoid abusive, predatory, or deceptive credit offers and financial products;

(F)

understand, evaluate, and compare financial products, services, and opportunities;

(G)

understand resources that ought to be easily accessible and affordable, and that inform and educate investors as to their rights and avenues of recourse when an investor believes his or her rights have been violated by unprofessional conduct of market intermediaries;

(H)

increase awareness of the particular financial needs and financial transactions (such as the sending of remittances) of consumers who are targeted in multilingual financial literacy and education programs and improve the development and distribution of multilingual financial literacy and education materials;

(I)

promote bringing individuals who lack basic banking services into the financial mainstream by opening and maintaining an account with a financial institution; and

(J)

improve financial literacy and education through all other related skills, including personal finance and related economic education, with the primary goal of programs not simply to improve knowledge, but rather to improve consumers’ financial choices and outcomes.

(3)

Best practices for teaching financial literacy

(A)

In general

After soliciting public comments and consulting with and receiving input from relevant parties, including a diverse set of institutions of higher education and other parties, the Commission shall, by not later than 1 year after May 24, 2018, establish best practices for institutions of higher education regarding methods to—

(i)

teach financial literacy skills; and

(ii)

provide useful and necessary information to assist students at institutions of higher education when making financial decisions related to student borrowing.

(B)

Best practices

The best practices described in subparagraph (A) shall include the following:

(i)

Methods to ensure that each student has a clear sense of the student’s total borrowing obligations, including monthly payments, and repayment options.

(ii)

The most effective ways to engage students in financial literacy education, including frequency and timing of communication with students.

(iii)

Information on how to target different student populations, including part-time students, first-time students, and other nontraditional students.

(iv)

Ways to clearly communicate the importance of graduating on a student’s ability to repay student loans.

(C)

Maintenance of best practices

(D)

Rule of construction

(b)

Website

(1)

In general

(2)

Purposes

The website established under paragraph (1) shall—

(A)

serve as a clearinghouse of information about Federal financial literacy and education programs;

(B)

provide a coordinated entry point for accessing information about all Federal publications, grants, and materials promoting enhanced financial literacy and education;

(C)

offer information on all Federal grants to promote financial literacy and education, and on how to target, apply for, and receive a grant that is most appropriate under the circumstances;

(D)

as the Commission considers appropriate, feature website links to efforts that have no commercial content and that feature information about financial literacy and education programs, materials, or campaigns; and

(E)

offer such other information as the Commission finds appropriate to share with the public in the fulfillment of its purpose.

(c)

Toll-free hotline

(d)

Development and dissemination of materials

The Commission shall—

(1)

develop materials to promote financial literacy and education; and

(2)

disseminate such materials to the general public.

(e)

Coordination of efforts

(f)

National strategy

(1)

In general

The Commission shall—

(A)

not later than 18 months after December 4, 2003, develop a national strategy to promote basic financial literacy and education among all American consumers; and

(B)

coordinate Federal efforts to implement the strategy developed under subparagraph (A).

(2)

Strategy

The strategy to promote basic financial literacy and education required to be developed under paragraph (1) shall provide for—

(A)

participation by State and local governments and private, nonprofit, and public institutions in the creation and implementation of such strategy;

(B)

the development of methods—

(i)

to increase the general financial education level of current and future consumers of financial services and products; and

(ii)

to enhance the general understanding of financial services and products;

(C)

review of Federal activities designed to promote financial literacy and education, and development of a plan to improve coordination of such activities; and

(D)

the identification of areas of overlap and duplication among Federal financial literacy and education activities and proposed means of eliminating any such overlap and duplication.

(3)

National strategy review

(g)

Consultation

(h)

Reports

(1)

In general

(2)

Contents

The report required under paragraph (1) shall include—

(A)

the national strategy for financial literacy and education, as described under subsection (f);

(B)

information concerning the implementation of the duties of the Commission under subsections (a) through (g);

(C)

an assessment of the success of the Commission in implementing the national strategy developed under subsection (f);

(D)

an assessment of the availability, utilization, and impact of Federal financial literacy and education materials;

(E)

information concerning the content and public use of—

(i)

the website established under subsection (b); and

(ii)

the toll-free telephone number established under subsection (c);

(F)

a brief survey of the financial literacy and education materials developed under subsection (d), and data regarding the dissemination and impact of such materials, as measured by improved financial decisionmaking;

(G)

a brief summary of any hearings conducted by the Commission, including a list of witnesses who testified at such hearings;

(H)

information about the activities of the Commission planned for the next fiscal year;

(I)

a summary of all Federal financial literacy and education activities targeted to communities that have historically lacked access to financial literacy materials and education, and have been underserved by the mainstream financial systems; and

(J)

such other materials relating to the duties of the Commission as the Commission deems appropriate.

(3)

Initial report

(i)

Testimony

(Pub. L. 108–159, title V, § 514, Dec. 4, 2003, 117 Stat. 2004; Pub. L. 115–174, title VI, § 603, May 24, 2018, 132 Stat. 1367.)

cite as: 20 USC 9703