SAFE Lending Act of 2025

Increased control over bank accounts: Consumers can limit the use of remotely created checks by providing a written designation to their financial institution, and they retain the right to revoke that designation at any time (Section 2(a)).

Enhanced protections for electronic transfers: Electronic fund transfers used to repay small-dollar consumer credit will be treated as preauthorized, providing specific legal protections (Section 2(b)).

Increased transparency for small-dollar loans: Lenders of small-dollar consumer credit transactions must register with the Bureau before issuing credit (Section 3(a)(1)(B)).

Protection against unfair state-level variations: Small-dollar credit transactions conducted via electronic means or by national banks must comply with the laws of the consumer's home state regarding interest and fees (Section 3(a)(1)(A)).

Prevention of overdraft fees on prepaid accounts: It is unlawful to charge consumers a fee for an overdraft on a prepaid account, and transactions exceeding the account balance may be declined instead (Section 3(b)(2)(A)-(B)).

Stronger privacy and lead generation rules: The bill prevents people from gathering sensitive personal financial information for lead generation unless they are the ones directly providing the credit (Section 4(b)).

Restrictions on fund transfers: The bill imposes limitations on how remotely created checks can be issued, requiring a written designation from the consumer (Section 2(a)).

Compliance burdens for lenders: Small-dollar lenders are required to register with the Bureau before providing credit (Section 3(a)(1)(B)).