Bill > HR990

This bill, titled the "Stopping Abuse and Fraud in Electronic Lending Act of 2013" or "SAFE Lending Act of 2013," aims to strengthen consumer protections in credit transactions, particularly those conducted online. Key provisions include requiring explicit written consumer consent for the issuance of remotely created checks, which are checks not generated by the consumer's bank, and treating electronic fund transfers for small-dollar loans as preauthorized transfers, thus affording them greater protection. The bill also mandates that small-dollar consumer credit transactions, defined as loans of $5,000 or less payable in less than 12 months, must comply with the laws of the state where the consumer resides regarding interest rates, fees, and other charges, regardless of how the transaction is conducted (online, phone, mail, etc.) or by whom. Furthermore, it prohibits entities from collecting or distributing sensitive personal financial information for small-dollar loans unless they are directly providing the credit themselves, and it enhances the authority of the Bureau of Consumer Financial Protection (CFPB) to investigate and take action against "covered offshore persons" (entities outside the U.S. conducting business with U.S. residents) and "covered onshore persons" (U.S. entities) that violate federal, state, or tribal consumer financial laws. This enhanced authority includes issuing cease and desist orders and requiring financial transaction providers to block payments to non-compliant entities. Finally, the bill requires the Government Accountability Office (GAO) to study the availability of capital on Indian reservations and the impact of small-dollar credit on tribal members, and it sets a deadline for the CFPB to issue necessary rules to implement these changes.