H.R. 1658 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Financial Services, Feb 27, 2025
What this bill does
In plain words · AI-written from the official summaryAdds protections for small loans and bank accounts
Ever wondered who can create checks on your behalf, or what protections you have with quick loans. This bill sets up new rules for certain credit and banking situations. It says remotely created checks (checks not signed by you) can only be issued if you've specifically said yes in writing. It requires small-dollar lenders to register with the Consumer Financial Protection Bureau, bans overdraft fees on prepaid accounts, and gives you the right to stop payment on automatic transfers for small loans.
How it affects you
If you use small-dollar loans, have a prepaid account, or authorize electronic payments, these rules would give you more control and protection. You'd have a clearer say in who can create checks from your account, more power to stop automatic payments if you change your mind, and would avoid overdraft charges on prepaid cards. Lenders would have to register, making it easier to know who they are.
Read the official summary (Introduced in House, Feb 27, 2025)
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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 1658
A BILL
SAFE Lending Act of 2025
Sponsor: Rep. Suzanne Bonamici (D-OR-1) · Introduced Feb 27, 2025 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 27, 2025: “Referred to the House Committee on Financial Services.”