SAFE Lending Act of 2025
Congress proposes stricter rules for small-dollar loans, limiting surprise withdrawals and sale of bank info
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Would limit “remotely created checks” so they can only be used if you name someone in writing, helping stop surprise withdrawals from your bank account.
- If you agree to repay a small-dollar loan by automatic bank transfer, the bill would treat that like ongoing autopay, giving you stronger rights to stop or block withdrawals.
- Would require small-dollar lenders (loans up to $5,000) to register with the main federal consumer finance watchdog before making these loans.
- For online and other remote loans (and loans by national banks), lenders would have to follow the borrower’s state rules on interest rates and fees, not the lender’s home state rules.
- Would restrict “lead generators” from collecting and selling key financial info (like account and routing numbers) for small-dollar loan offers unless they are the actual lender. Also bans overdraft fees on prepaid cards.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articles
AFSA Opposes Anti-Consumer Credit Legislation
AFSA says the SAFE Lending Act would restrict certain check-based payments and require state-licensed installment lenders to register with the CFPB, arguing it would reduce access to credit.
Heinrich Cosponsors Legislation to Stop Predatory Payday Lending Practices
Press release describing the SAFE Lending Act and its intended consumer protections targeting predatory payday lending practices.
Source Information
Document Type
Congressional Bill
Official Title
SAFE Lending Act of 2025
Data Sources
Sponsor
Cosponsors
(11)Analysis generated by AI. Always verify with official sources.