HR1658119th CongressWALLET

SAFE Lending Act of 2025

Sponsored By: Representative Rep. Bonamici, Suzanne [D-OR-1]

Introduced

Summary

Strengthen consumer protections in small‑dollar electronic lending. The SAFE Lending Act of 2025 would curb risky electronic payment tools, require small‑dollar lenders to register and follow borrowers' state rules for rates and fees, and block third‑party brokers from harvesting sensitive bank data.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 0 costs, 2 mixed.

Consumer Bureau must issue rules in a year

If enacted, the Consumer Financial Protection Bureau would have to issue final rules to carry out this bill within one year of enactment. This would set a clear timeline for lenders and consumers to follow new protections.

New rules for small-dollar lenders

If enacted, companies would need to register with the Consumer Bureau before offering small-dollar loans (generally up to $5,000, adjusted for inflation). This would also cover companies that arrange, broker, or collect loan applications. Firms that share sensitive data like Social Security or bank numbers for these loans would have to show clear contact and ID details. They could not collect or broker this sensitive data unless they are the actual lender. Phone and internet carriers and neutral hosts would not be treated as brokers.

Remote small loans follow your state

If enacted, any small-dollar loan made online, by phone or mail, or by a national bank would have to follow your home-state rules on APR, interest, and fees. This generally applies to loans up to about $5,000. In stricter states, this could lower allowed rates or fees. In other states, lenders might change pricing or reduce availability.

Extra protections for electronic loan payments

If enacted, when you choose to repay a small-dollar loan by electronic bank transfer, that payment would count as a preauthorized transfer. You would get protections under the Electronic Fund Transfer Act, like error rights and limits on unauthorized debits. This generally applies to loans up to about $5,000.

No overdraft fees on prepaid cards

If enacted, you would not be charged overdraft fees on prepaid accounts. Your bank could still decline a purchase that would put the card below zero. The Consumer Bureau could also ban other prepaid fees by rule to improve price clarity.

Tighter rules on remotely created checks

If enacted, a remotely created check could be used only if you name the issuer in writing with your bank. You could cancel that permission at any time. Companies could not use such payment orders to respond to you using a consumer right. The Consumer Bureau could add more limits by rule.

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Sponsors & CoSponsors

Sponsor

Rep. Bonamici, Suzanne [D-OR-1]

OR • D

Cosponsors

  • Rep. Jayapal, Pramila [D-WA-7]

    WA • D

    Sponsored 2/27/2025

  • Rep. Schakowsky, Janice D. [D-IL-9]

    IL • D

    Sponsored 2/27/2025

  • Rep. García, Jesús G. "Chuy" [D-IL-4]

    IL • D

    Sponsored 3/3/2025

Roll Call Votes

No roll call votes available for this bill.

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