Bill > HR1658

This bill aims to protect consumers in small-dollar lending by introducing several key provisions. It establishes a registration requirement for lenders offering small-dollar consumer credit transactions (generally loans up to $5,000), mandating that these lenders register with the Consumer Financial Protection Bureau before extending credit. The bill restricts the use of remotely created checks, requiring written consumer designation and allowing consumers to revoke authorization at any time. It prohibits certain fees on prepaid accounts, such as overdraft charges, and places strict limitations on lead generation in small-dollar lending by preventing the distribution of sensitive personal financial information by entities not directly providing the credit. Additionally, the bill requires lenders to comply with state laws regarding interest rates and fees for online, telephone, and electronic lending, and mandates that electronic fund transfers for credit repayment receive the same protections as preauthorized transfers. The legislation also directs the Comptroller General to conduct a study on capital availability and the economic impact of small-dollar lending on Native American tribal communities. Finally, the bill requires the Consumer Financial Protection Bureau to adopt implementing rules within one year of enactment.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/1658/all-info