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HR 1658119th CongressIntroduced
SAFE Lending Act of 2025
Introduced: Oct 29, 2025
Civil Rights & JusticeFinancial ServicesTechnology & Innovation
Standard Summary
Comprehensive overview in 1-2 paragraphs
The SAFE Lending Act of 2025 amends the Truth in Lending Act and Electronic Fund Transfer Act to regulate small-dollar consumer credit transactions under $5,000, requiring lender registration with the CFPB, prohibiting unauthorized remotely created checks, banning prepaid account overdraft fees, restricting third-party lead generation of sensitive financial data, and mandating a GAO study on tribal lending impacts with CFPB rulemaking.
Key Points
- 1Mandates CFPB registration for all small-dollar lenders offering loans up to $5,000 with short repayment terms to increase regulatory oversight and accountability.
- 2Prohibits third parties from collecting sensitive financial information like bank account numbers for lead generation unless they directly issue the credit, preventing data exploitation.
- 3Bans overdraft fees on prepaid accounts and extends electronic fund transfer protections to one-time credit repayments, reducing hidden costs for vulnerable consumers.
Impact Areas
Consumers using payday loans and prepaid debit cardsSmall-dollar lenders and lead generation companiesFinancial institutions processing electronic paymentsIndian Tribes regarding online lending practices on reservations
Generated by legislative-analyst-v3 on Nov 10, 2025