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Safe Harbor for Small Loans and Limits on Consumer Protection Enforcement (CFPB).

This law establishes safer standards for short-term loans up to $3,500 offered by banks and credit unions, prohibiting fees like prepayment penalties and rollovers. Crucially, it significantly restricts the federal consumer protection agency's (CFPB) power to prosecute financial institutions for 'abusive' practices, granting lenders more procedural safeguards and time to correct potential violations.
Key points
Safe Small Loans: Banks and credit unions offering loans up to $3,500 are protected from certain penalties if they follow strict safety rules (e.g., no balloon payments, no prepayment fees, amortization over multiple payments longer than 45 days).
CFPB Authority Limited: The Consumer Financial Protection Bureau must clearly define 'abusive practices' and is required to give lenders 180 days to fix self-identified violations before pursuing legal action.
Small Business Data: Requirements for collecting data on small business loans are eased for smaller financial institutions and loans made to businesses with revenues under $1 million, and compliance deadlines are extended.
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Expired
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Additional Information
Print number: 118_HR_8338
Sponsor: Rep. Kim, Young [R-CA-40]
Process start date: 2024-05-10
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Clarity in Lending Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8338.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-05-10.

What are the main provisions?

Key points include:

  • Safe Small Loans: Banks and credit unions offering loans up to $3,500 are protected from certain penalties if they follow strict safety rules (e.g., no balloon payments, no prepayment fees, amortization over multiple payments longer than 45 days).
  • CFPB Authority Limited: The Consumer Financial Protection Bureau must clearly define 'abusive practices' and is required to give lenders 180 days to fix self-identified violations before pursuing legal action.
  • Small Business Data: Requirements for collecting data on small business loans are eased for smaller financial institutions and loans made to businesses with revenues under $1 million, and compliance deadlines are extended.
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 Rep. Kim, Young [R-CA-40].

What is the latest detailed status?

The latest detailed status is: Placed on the Union Calendar, Calendar No. 652.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Economy Courts and Law