SAFE Lending Act of 2025

Enhanced Control Over Bank Accounts: Consumers gain more control over remotely created checks, as these can only be issued if a person is designated in writing to the consumer's specific bank and that designation can be revoked at any time (Section 2(a)).

Increased Protection for Small-Dollar Credit Repayments: Electronic fund transfers used to repay small-dollar consumer credit transactions will be treated as preauthorized, providing consumers with specific legal protections (Section 2(b)).

Regulatory Oversight of Small-Dollar Lenders: By requiring lenders of small-dollar consumer credit transactions to register with the Bureau, the bill adds a layer of oversight for loans up to $5,000 (Section 3(a)).

State-Level Protections for Remote Lending: Consumers using the internet, telephone, or mail for small-dollar credit from national banks will have the right to the protections of their specific state's laws regarding interest and fees (Section 3(a)).

Elimination of Overdraft Fees on Prepaid Accounts: The bill makes it unlawful to charge consumers fees for an overdraft on a prepaid account (Section 3(b)).

Prevention of Unintended Overdrafts: Financial institutions may decline transactions that exceed a consumer's prepaid account balance rather than charging a fee (Section 3(b)).

Protection of Sensitive Financial Data: The act limits the distribution of sensitive personal financial information by prohibiting lead generation for small-dollar credit unless the person is the actual lender (Section 4(b) and 4(c)).