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SAFE Lending Act of 2025
3/21/2025, 6:39 PM
Summary of Bill HR 1658
The Truth in Lending Act is a federal law that requires lenders to disclose key terms and costs of credit to consumers. This helps consumers make informed decisions when borrowing money. The proposed amendment seeks to improve upon this existing law by addressing certain issues that have arisen in the extension of consumer credit.
The bill includes provisions that aim to enhance transparency and accountability in the lending process. This includes requiring lenders to provide clearer and more comprehensive information to consumers about the terms and costs of credit. The bill also seeks to protect consumers from predatory lending practices and ensure that they are not taken advantage of by unscrupulous lenders. In addition to addressing issues related to consumer credit, the bill also includes provisions for other purposes. These may include measures to promote financial literacy among consumers, strengthen consumer protections, and enhance the overall effectiveness of the Truth in Lending Act. Overall, Bill 119 HR 1658 represents a concerted effort to improve the regulation of consumer credit and ensure that consumers are able to make informed decisions when borrowing money. By addressing key issues in the extension of consumer credit and promoting transparency and accountability in the lending process, the bill aims to protect consumers and promote fair and responsible lending practices.
Congressional Summary of HR 1658
Stopping Abuse and Fraud in Electronic Lending Act of 2025 or the SAFE Lending Act of 2025
This bill creates additional consumer protections applicable to certain credit and banking transactions, including matters concerning remotely created checks, electronic fund transfers, registration of small-dollar lenders, overdraft fees, and the collection of personal information.
Under the bill, remotely created checks may only be issued by a person specifically designated in writing by a consumer. The consumer must provide the designation to the consumer's depository institution. (A remotely created check is a check not issued by the bank and not signed by the account owner.)
A voluntary agreement to repay a small-dollar consumer credit transaction by an electronic fund transfer is subject to certain protections, including the right of the consumer to stop payment.
Small-dollar consumer credit providers must register with the Consumer Financial Protection Bureau. Any small-dollar consumer credit transaction is subject to the laws of the state in which the consumer resides.
The bill also prohibits overdraft fees on prepaid accounts.
