S. 780 — SAFE Lending Act of 2025

This section amends the Electronic Fund Transfer Act (EFTA) to regulate remotely created checks and expand certain consumer protections for electronic fund transfers as follows: (1) in section 905 (15 U.S.C. 1693c), adds subsection (d) defining a remotely created check (i.e., a check or similar payment order not created by the account-holding financial institution and lacking the account holder's signature) and limiting such checks to those issued by a person designated in writing by the consumer with notice provided to the depository institution, allowing revocation at any time, and prohibiting issuance in response to a consumer exercising rights under federal consumer financial laws or other Bureau of Consumer Financial Protection (CFPB)-jurisdictional laws (Thus, this restricts unauthorized debits via remotely created checks, which are often used in payment processing.); and (2) in section 913 (15 U.S.C. 1693k), expands liability limitations for unauthorized transfers to apply to any electronic fund transfer (from preauthorized electronic fund transfers only) and treats a consumer's voluntary one-time electronic fund transfer repaying a small-dollar consumer credit extension (as defined in Truth in Lending Act §110(a)) as preauthorized, subjecting it to EFTA protections such as authorization and error-resolution requirements.

This section amends the Truth in Lending Act (TILA) by (1) requiring persons to register with the Consumer Financial Protection Bureau (CFPB) before issuing credit in a small-dollar consumer credit transaction—defined as consumer credit of $5,000 or less (or a higher CPI-adjusted amount set by CFPB rule) extended under agreements repayable in one or more installments of less than 12 months, certain open-end plans with defined repayment timelines or events, or other plans set by CFPB rule, including any facilitation, brokering, arranging, or application-gathering for such transactions; and (2) requiring small-dollar consumer credit transactions made over the internet, by telephone, facsimile, mail, electronic mail, other electronic means, or by a national bank to comply with the laws of the state where the consumer resides on annual percentage rates, interest, fees, charges, and related matters as determined by CFPB rule. This section further amends the Electronic Fund Transfer Act to prohibit any person from charging consumers a fee for an overdraft on a prepaid account (as defined in 12 CFR 1005.2), authorize financial institutions to decline transactions exceeding the account balance, and direct CFPB to prohibit additional fees by rule to prevent unfair, deceptive, or abusive acts or practices and promote consumer ability to understand and compare prepaid account costs.

This section establishes restrictions on lead generation in small-dollar consumer credit transactions by adding a new section 140B to chapter 2 of the Truth in Lending Act (TILA). The new section requires any person facilitating, brokering, arranging for, or gathering applications for the distribution of sensitive personal financial information (i.e., social security number, financial account number, bank routing number, bank account number, or security/access code) in connection with such a transaction to prominently disclose contact and identification information, including for service of process and domain name registrants. It prohibits such persons from engaging in those activities unless directly providing the small-dollar consumer credit to the consumer and clarifies that the provision does not limit the Consumer Financial Protection Bureau's authority to impose further restrictions. It exempts telecommunications services, Internet access services, Internet information location tools, and the transmission, storage, retrieval, hosting, formatting, or translation of communications without selection or alteration of content (except deletions consistent with Section 230(c) of the Communications Act), and makes a conforming amendment to TILA's table of sections.

This section directs the Comptroller General of the United States to conduct a study, not later than 180 days after the date of enactment, on (1) the availability of capital on reservations of Indian tribes and (2) the impact of small-dollar consumer credit extended through internet and non-internet means to members of Indian tribes on their economic opportunity and wealth. In conducting the study, the Comptroller General must consult with the Bureau of Consumer Financial Protection, the Board of Governors of the Federal Reserve System, the Director of the Bureau of Indian Affairs, federally recognized Indian tribes, and community development financial institutions operating on Indian lands; and submit the results to the Senate Committees on Banking, Housing, and Urban Affairs and Indian Affairs and the House Committees on Financial Services and Natural Resources.

This section directs the Bureau of Consumer Financial Protection to adopt any final rules necessary to implement this Act and its amendments not later than one year after the date of enactment.