SAFE Lending Act: Stronger Consumer Protection Against Fraud and Predatory Loans.
This law introduces new safeguards for consumers using small-dollar loans and prepaid cards. Citizens gain greater control over their bank accounts, making unauthorized withdrawals more difficult by restricting remotely created checks. Furthermore, online lenders must now comply with the interest rate limits of the consumer's home state, protecting against predatory practices.
Key points
Bans overdraft fees on prepaid accounts; transactions exceeding the balance must be declined without charge.
Restricts third-party brokers from selling sensitive financial data (like account numbers) when consumers apply for small loans.
Increases control over bank withdrawals by limiting unauthorized remotely created checks to only those designated in writing by the consumer to their bank.
Online small-dollar loans (up to $5,000) must adhere to the interest rate and fee laws of the consumer's state of residence.
Expired
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