Bill > S172

This bill, titled the Stopping Abuse and Fraud in Electronic Lending Act of 2013 (SAFE Lending Act of 2013), aims to amend the Truth in Lending Act and the Electronic Fund Transfer Act to enhance consumer protections, particularly concerning small-dollar consumer credit and electronic transactions. Key provisions include requiring explicit written authorization from consumers before their bank accounts can be debited via remotely created checks, which are defined as checks not created by the consumer's bank and lacking the consumer's signature. It also clarifies that electronic fund transfers used to repay small-dollar loans must be treated as preauthorized transfers, affording them greater consumer protections. Furthermore, the bill mandates that small-dollar credit transactions, regardless of how they are conducted (online, phone, mail, etc.) or by whom (including national banks), must comply with the consumer's home state laws regarding interest rates, fees, and other charges, unless federal or tribal law offers stronger protections. The bill also imposes restrictions on "lead generation" in small-dollar credit transactions, meaning entities facilitating or brokering these loans must directly provide the credit themselves and prominently disclose their contact information, while prohibiting them from distributing sensitive personal financial information like Social Security numbers or bank account details. Finally, it grants the Consumer Financial Protection Bureau (CFPB) enhanced authority to investigate and take action against "covered offshore persons" (entities operating online from outside the U.S. but targeting U.S. consumers) and "covered onshore persons" (U.S. entities) for violations of federal, state, or tribal consumer financial laws, including the ability to issue cease and desist orders and require financial transaction providers to block payments to violating entities, with provisions for studies on capital availability for Indian tribes and a rulemaking deadline for the CFPB.