The SAFE Lending Act of 2024 aims to protect consumers from predatory lending practices in small-dollar credit transactions, which typically involve loans of $5,000 or less repaid within twelve months. The bill requires lenders offering small-dollar credit to register with the Consumer Financial Protection Bureau and prohibits certain abusive practices, including charging overdraft fees on prepaid accounts and allowing "lead generators" to sell consumers' sensitive financial information to multiple lenders without providing the credit themselves. The legislation also restricts use of remotely created checks without explicit written consumer consent and provides additional protections for electronic fund transfer arrangements related to credit repayment. The Consumer Financial Protection Bureau must issue implementing regulations within one year of enactment, and the Government Accountability Office must complete a study within 180 days on how small-dollar lending affects economic opportunity for Native Americans on tribal lands. The bill applies to all small-dollar loans made online, by phone, mail, or other electronic means, as well as those made by national banks.
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