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Consumer Protection Against Online Lending Fraud and Small Loans

This act aims to enhance citizens' financial security by introducing new rules for online loans and small-dollar credit. It restricts unauthorized bank account payments and provides greater control over personal data, protecting against abuse.
Key points
Increased Payment Control: Banks will require written consent for remotely created checks, making unauthorized withdrawals from accounts more difficult.
Protection Against Small Loan Abuse: Companies offering small online loans will need to register, and their operations will be subject to the laws of the borrower's state of residence.
Ban on Overdraft Fees for Prepaid Accounts: Overdraft fees on prepaid cards will be prohibited, and transactions exceeding the balance may be declined.
Restrictions on Personal Data Sharing: Loan intermediaries will be prohibited from sharing sensitive financial data without directly providing credit.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_780
Sponsor: Sen. Merkley, Jeff [D-OR]
Process start date: 2025-02-27
Lustra uses Artificial Intelligence. Verify details in source documents.
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 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_780.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-02-27.

What are the main provisions?

Key points include:

  • Increased Payment Control: Banks will require written consent for remotely created checks, making unauthorized withdrawals from accounts more difficult.
  • Protection Against Small Loan Abuse: Companies offering small online loans will need to register, and their operations will be subject to the laws of the borrower's state of residence.
  • Ban on Overdraft Fees for Prepaid Accounts: Overdraft fees on prepaid cards will be prohibited, and transactions exceeding the balance may be declined.
  • Restrictions on Personal Data Sharing: Loan intermediaries will be prohibited from sharing sensitive financial data without directly providing credit.
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 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 2025-12-23.

CATEGORIES

Economy Courts and Law