SAFE Lending Act of 2024
The source supplies the latest action, but no lifecycle stage.
Latest action (19 Sep 2024): Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
What this bill does
The proposed SAFE Lending Act of 2024, introduced in the Senate, aims to amend existing consumer credit laws. Specifically, it seeks to enhance consumer protections related to electronic fund transfers and small-dollar loans. The bill would limit the use of remotely created checks, requiring consumer authorization for their issuance. It would also strengthen protections for one-time electronic fund transfers used for small-dollar credit, treating them like preauthorized transfers.
The bill proposes a registration requirement for entities issuing small-dollar consumer credit, defined as loans up to $5,000 or a higher amount set by rule, payable in installments typically under 12 months. Such loans made online or by phone would have to comply with the consumer's state laws regarding rates, fees, and charges. Additionally, the bill would prohibit charging overdraft fees on prepaid accounts and restrict the generation of leads for small-dollar loans when sensitive personal financial information is involved, unless the lead generator is directly providing the credit.
Introduced in the Senate on September 19, 2024, by Senator Merkley and others, the bill was read twice and referred to the Committee on Banking, Housing, and Urban Affairs. The Committee will now consider the bill, and future actions could include committee hearings, amendments, and a vote. If passed by the Senate, it would then move to the House of Representatives for consideration. The bill also mandates studies on capital availability and the impact of small-dollar credit on Indian Tribes, and requires the Bureau of Consumer Financial Protection to issue rules to implement its provisions within one year of enactment.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Timeline
19 Sep 2024
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Common questions
- What does S. 5129 do?
- The proposed SAFE Lending Act of 2024, introduced in the Senate, aims to amend existing consumer credit laws. Specifically, it seeks to enhance consumer protections related to electronic fund transfers and small-dollar loans. The bill would limit the use of remotely created checks, requiring consumer authorization for their issuance. It would also strengthen protections for one-time electronic fund transfers used for small-dollar credit, treating them like preauthorized transfers. The bill proposes a registration requirement for entities issuing small-dollar consumer credit, defined as loans up to $5,000 or a higher amount set by rule, payable in installments typically under 12 months. Such loans made online or by phone would have to comply with the consumer's state laws regarding rates, fees, and charges. Additionally, the bill would prohibit charging overdraft fees on prepaid accounts and restrict the generation of leads for small-dollar loans when sensitive personal financial information is involved, unless the lead generator is directly providing the credit. Introduced in the Senate on September 19, 2024, by Senator Merkley and others, the bill was read twice and referred to the Committee on Banking, Housing, and Urban Affairs. The Committee will now consider the bill, and future actions could include committee hearings, amendments, and a vote. If passed by the Senate, it would then move to the House of Representatives for consideration. The bill also mandates studies on capital availability and the impact of small-dollar credit on Indian Tribes, and requires the Bureau of Consumer Financial Protection to issue rules to implement its provisions within one year of enactment.
- Has S. 5129 become law?
- The source does not supply a confirmed lifecycle stage for S. 5129. Check the latest action and official source below.
- Who sponsored S. 5129?
- S. 5129 was sponsored by Sen. Merkley, Jeff [D-OR] (D-OR), with 10 cosponsors.
- What's the latest action on S. 5129?
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (19 Sep 2024).
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