Bill > S780

This bill, known as the SAFE Lending Act of 2025, introduces several significant consumer protections in the realm of small-dollar lending and electronic financial transactions. The bill requires small-dollar lenders (defined as those offering credit up to $5,000 or a Bureau-adjusted amount) to register with the Consumer Financial Protection Bureau before issuing credit. It prohibits unauthorized remotely created checks, meaning checks not created by the financial institution and without the account holder's direct signature, and allows consumers to revoke such authorizations at any time. The legislation also restricts lead generation for small-dollar consumer credit transactions, preventing entities from distributing sensitive personal financial information unless they are directly providing the credit. Additionally, the bill prohibits overdraft fees on prepaid accounts and provides that electronic fund transfers for small-dollar credit repayments will be treated with the same protections as preauthorized transfers. The legislation further mandates a study by the Comptroller General on the availability of capital and economic impact of small-dollar lending in Native American tribal lands. The Consumer Financial Protection Bureau is required to develop final implementing rules within one year of the Act's enactment, ensuring comprehensive guidance for compliance with these new consumer financial protections.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/780/all-info