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SAFE Lending Act of 2025
3/26/2025, 11:03 AM
Summary of Bill S 780
One key aspect of the bill is the requirement for lenders to provide clearer and more comprehensive information to consumers about the terms and conditions of credit agreements. This includes disclosing the total cost of credit, including interest rates, fees, and other charges, in a more easily understandable manner.
Additionally, the bill aims to address issues related to predatory lending practices by imposing stricter regulations on lenders who engage in unfair or deceptive practices. This includes prohibiting certain practices that may harm consumers, such as charging excessive fees or engaging in discriminatory lending practices. Overall, the goal of Bill 119 s 780 is to ensure that consumers are better informed and protected when obtaining credit, and to promote fair and transparent practices in the credit industry. The bill seeks to strike a balance between protecting consumers and allowing for the continued availability of credit to those who need it.
Congressional Summary of S 780
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.
Read the Full Bill
Current Status of Bill S 780
Bipartisan Support of Bill S 780
Total Number of Sponsors
1Democrat Sponsors
1Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
19Democrat Cosponsors
17Republican Cosponsors
0Unaffiliated Cosponsors
2Policy Area and Potential Impact of Bill S 780
Primary Policy Focus
Finance and Financial SectorAlternate Title(s) of Bill S 780
Comments
Finn Garner
11 months ago
I think this bill is good for us. It will help with credit stuff and that's important. I hope it passes and helps me with my credit. What do you all think about this?
