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Consumer Protection Against Online Lending Fraud and Abuse

This act aims to enhance consumer protection against unfair practices in lending, especially online. It introduces new rules for remotely created checks, electronic fund transfers, and the activities of small-dollar loan facilitators, ensuring greater transparency and financial security for citizens.
Key points
Restrictions on remotely created checks: Your money is safer as it will be harder to withdraw funds from your account without your explicit written consent.
Increased protection for small-dollar loans: Companies offering small loans (up to $5,000) will need to register and comply with the laws of your state of residence, potentially leading to lower fees and interest rates.
Prohibition of overdraft fees on prepaid accounts: You will not be charged fees if you spend more than you have on your prepaid account, protecting you from unexpected costs.
Limitations on personal data collection: Companies facilitating loans will be restricted from freely collecting and sharing your sensitive financial information, enhancing your online security.
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Expired
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Additional Information
Print number: 117_S_5099
Sponsor: Sen. Merkley, Jeff [D-OR]
Process start date: 2022-11-16
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SAFE Lending Act of 2022

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_5099.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-11-16.

What are the main provisions?

Key points include:

  • Restrictions on remotely created checks: Your money is safer as it will be harder to withdraw funds from your account without your explicit written consent.
  • Increased protection for small-dollar loans: Companies offering small loans (up to $5,000) will need to register and comply with the laws of your state of residence, potentially leading to lower fees and interest rates.
  • Prohibition of overdraft fees on prepaid accounts: You will not be charged fees if you spend more than you have on your prepaid account, protecting you from unexpected costs.
  • Limitations on personal data collection: Companies facilitating loans will be restricted from freely collecting and sharing your sensitive financial information, enhancing your online security.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Merkley, Jeff [D-OR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Economy Courts and Law