arrow_back Back to App

Consumer Protection Against Online and Small-Dollar Loan Abuse

This act aims to enhance financial security for citizens, especially concerning small-dollar loans. It introduces new rules for bank account control, increases transparency in credit extensions, and restricts personal data collection by intermediaries, thereby protecting against fraud and unfair fees.
Key points
Greater control over account payments: Banks will require written consent for remotely created checks, making unauthorized transactions more difficult.
Online loan protection: Small-dollar loans (up to $5,000) issued online or by phone must comply with state laws regarding interest rates and fees.
Prohibition of hidden fees: The act bans overdraft fees on prepaid accounts, protecting users from unexpected costs.
Restrictions on data collection: Loan intermediaries cannot collect sensitive financial data unless they are directly providing the loan, reducing data breach risks.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1658
Sponsor: Rep. Bonamici, Suzanne [D-OR-1]
Process start date: 2025-02-27
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

SAFE Lending Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_1658.

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 2025-02-27.

What are the main provisions?

Key points include:

  • Greater control over account payments: Banks will require written consent for remotely created checks, making unauthorized transactions more difficult.
  • Online loan protection: Small-dollar loans (up to $5,000) issued online or by phone must comply with state laws regarding interest rates and fees.
  • Prohibition of hidden fees: The act bans overdraft fees on prepaid accounts, protecting users from unexpected costs.
  • Restrictions on data collection: Loan intermediaries cannot collect sensitive financial data unless they are directly providing the loan, reducing data breach risks.
What is the specific legal status?

The current status is Introduced.

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

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Economy Courts and Law