II 

118TH CONGRESS 

2D SESSION S. 5129 

To amend the Truth in Lending Act to address certain issues relating to 

the extension of consumer credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 19, 2024 

Mr. MERKLEY (for himself, Ms. BALDWIN, Mr. BLUMENTHAL, Mr. WYDEN, 

Mr. VAN HOLLEN, Mr. SANDERS, Mr. DURBIN, Mr. MARKEY, Mr. HEINRICH, and Ms. SMITH) introduced the following bill; which was read twice 

and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Truth in Lending Act to address certain 

issues relating to the extension of consumer credit, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stopping Abuse and 

5 Fraud in Electronic Lending Act of 2024’’ or the ‘‘SAFE 

6 Lending Act of 2024’’. 

7 SEC. 2. CONSUMER CONTROL OVER BANK ACCOUNTS. 

8 (a) PROHIBITING UNAUTHORIZED REMOTELY CRE9 ATED CHECKS.—Section 905 of the Electronic Fund 


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1 Transfer Act (15 U.S.C. 1693c) is amended by adding at 

2 the end the following: 

3 ‘‘(d) LIMITATIONS ON REMOTELY CREATED

4 CHECKS.— 

5 ‘‘(1) DEFINITION.—In this subsection— 

6 ‘‘(A) the term ‘remotely created check’ 

7 means a check, including a paper or electronic 

8 check and any other payment order that the 

9 Bureau, by rule, determines is appropriately 

10 covered under this subsection, that— 

11 ‘‘(i) is not created by the financial in12 stitution that holds the customer account 

13 from which the check is to be paid; and 

14 ‘‘(ii) does not bear a signature ap15 plied, or purported to be applied, by the 

16 person from whose account the check is to 

17 be paid; and 

18 ‘‘(B) the term ‘Federal consumer financial 

19 law’ has the meaning given the term in section 

20 1002 of the Consumer Financial Protection Act 

21 of 2010 (12 U.S.C. 5481). 

22 ‘‘(2) LIMITATIONS.—Subject to the limitations 

23 in paragraph (3) and any additional limitations that 

24 the Bureau may establish, by rule, a remotely cre25 ated check may only be issued by a person desVerDate Sep 11 2014 19:35 Sep 30, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5129.IS S5129

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1 ignated in writing by a consumer, with that written 

2 designation specifically provided by the consumer to 

3 the insured depository institution at which the con4 sumer maintains the account from which the check 

5 is to be drawn. 

6 ‘‘(3) ADDITIONAL LIMITATIONS.— 

7 ‘‘(A) IN GENERAL.—A designation pro8 vided by a consumer under paragraph (2) may 

9 be revoked at any time by the consumer. 

10 ‘‘(B) CONSUMER FINANCIAL PROTECTION

11 LAWS.—No payment order, including a re12 motely created check, may be issued by any per13 son in response to the exercise of, or attempt to 

14 exercise, any right by a consumer under— 

15 ‘‘(i) any Federal consumer financial 

16 law; or 

17 ‘‘(ii) any other provision of any law or 

18 regulation within the jurisdiction of the 

19 Bureau.’’. 

20 (b) CONSUMER PROTECTIONS FOR CERTAIN ONE21 TIME ELECTRONIC FUND TRANSFERS.—Section 913 of 

22 the Electronic Fund Transfer Act (15 U.S.C. 1693k) is 

23 amended— 

24 (1) in the matter preceding paragraph (1), by 

25 inserting ‘‘(a) IN GENERAL.—’’ before ‘‘No person’’; 


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1 (2) in subsection (a)(1), as so designated, by 

2 striking ‘‘preauthorized electronic fund transfers’’ 

3 and inserting ‘‘an electronic fund transfer’’; and 

4 (3) by adding at the end the following: 

5 ‘‘(b) TREATMENT FOR ELECTRONIC FUND TRANS6 FERS IN CREDIT EXTENSIONS.—If a consumer voluntarily 

7 agrees to repay an extension of a small-dollar consumer 

8 credit transaction, as defined in section 110(a) of the 

9 Truth in Lending Act, by means of an electronic fund 

10 transfer, the electronic fund transfer shall be treated as 

11 a preauthorized electronic fund transfer subject to the pro12 tections of this title.’’. 

13 SEC. 3. TRANSPARENCY AND CONSUMER EMPOWERMENT 

14 IN SMALL-DOLLAR LENDING. 

15 (a) SMALL-DOLLAR CONSUMER CREDIT TRANS16 ACTIONS.— 

17 (1) IN GENERAL.—The Truth in Lending Act 

18 (15 U.S.C. 1601 et seq.) is amended— 

19 (A) by inserting after section 109 (15 

20 U.S.C. 1608) the following: 

21 ‘‘SEC. 110. REGISTRATION REQUIREMENT FOR SMALL-DOL22 LAR LENDERS. 

23 ‘‘(a) DEFINITION.—In this section, the term ‘small24 dollar consumer credit transaction’— 


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1 ‘‘(1) means any transaction that extends credit 

2 that is— 

3 ‘‘(A) made to a consumer in an amount 

4 that— 

5 ‘‘(i) is not more than— 

6 ‘‘(I) $5,000; or 

7 ‘‘(II) such greater amount as the 

8 Bureau may, by rule, determine; and 

9 ‘‘(ii) shall be adjusted annually to re10 flect changes in the Consumer Price Index 

11 for all urban consumers published by the 

12 Department of Labor; and 

13 ‘‘(B) extended pursuant to an agreement 

14 that is— 

15 ‘‘(i)(I) other than an open end credit 

16 plan; and 

17 ‘‘(II) payable in 1 or more install18 ments of less than 12 months (or such 

19 longer period as the Bureau may, by rule, 

20 determine); 

21 ‘‘(ii) an open end credit plan in which 

22 each advance is fully repayable within a 

23 defined time or in connection with a de24 fined event, or both; or 


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1 ‘‘(iii) any other plan as the Bureau 

2 determines, by rule; and 

3 ‘‘(2) includes any action that facilitates, bro4 kers, arranges, or gathers applications for a trans5 action described in paragraph (1). 

6 ‘‘(b) REGISTRATION REQUIREMENT.—A person shall 

7 register with the Bureau before issuing credit in a small8 dollar consumer credit transaction.’’; and 

9 (B) in section 173 (15 U.S.C. 1666j), by 

10 adding at the end the following: 

11 ‘‘(d) Notwithstanding any other provision of this title, 

12 any small-dollar consumer credit transaction, as defined 

13 in section 110(a), shall comply with the laws of the State 

14 in which the consumer to which credit in the transaction 

15 is extended resides with respect to annual percentage 

16 rates, interest, fees, charges, and such other similar or re17 lated matters as the Bureau may, by rule, determine if 

18 the small-dollar consumer credit transaction is— 

19 ‘‘(1) made— 

20 ‘‘(A) over the internet; 

21 ‘‘(B) by telephone; 

22 ‘‘(C) by facsimile; 

23 ‘‘(D) by mail; 

24 ‘‘(E) by electronic mail; or 


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1 ‘‘(F) through another electronic commu2 nication; or 

3 ‘‘(2) conducted by a national bank.’’. 

4 (2) TECHNICAL AND CONFORMING AMEND5 MENT.—The table of sections for chapter 1 of the 

6 Truth in Lending Act (15 U.S.C. 1601 et seq.) is 

7 amended by inserting after the item relating to sec8 tion 109 the following: 

‘‘110. Registration requirement for small-dollar lenders.’’. 

9 (b) PROHIBITION ON CERTAIN FEES.—Section 915 

10 of the Electronic Fund Transfer Act (15 U.S.C. 1693l– 

11 1) is amended— 

12 (1) by redesignating subsection (d) as sub13 section (e); and 

14 (2) by inserting after subsection (c) the fol15 lowing: 

16 ‘‘(d) ADDITIONAL FEES PROHIBITED.— 

17 ‘‘(1) DEFINITION.—In this subsection, the term 

18 ‘prepaid account’ has the meaning given the term by 

19 rule of the Bureau. 

20 ‘‘(2) PROHIBITION.—With respect to the use of 

21 a prepaid account by a consumer— 

22 ‘‘(A) it shall be unlawful for any person to 

23 charge the consumer a fee for an overdraft with 

24 respect to the prepaid account, including a 

25 shortage of funds or a transaction processed for 


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1 an amount exceeding the account balance of the 

2 prepaid account; 

3 ‘‘(B) any transaction for an amount that 

4 exceeds the account balance of the prepaid ac5 count may be declined, except that the con6 sumer may not be charged a fee for that pur7 pose; and 

8 ‘‘(C) the Bureau may, by rule, prohibit the 

9 charging of any fee so that the Bureau may— 

10 ‘‘(i) prevent unfair, deceptive, or abu11 sive practices; and 

12 ‘‘(ii) promote the ability of the con13 sumer to understand and compare the 

14 costs of prepaid accounts.’’. 

15 SEC. 4. RESTRICTIONS ON LEAD GENERATION IN SMALL16 DOLLAR CONSUMER CREDIT TRANSACTIONS. 

17 (a) IN GENERAL.—Chapter 2 of the Truth in Lend18 ing Act (15 U.S.C. 1631 et seq.) is amended by adding 

19 at the end the following: 

20 ‘‘SEC. 140B. RESTRICTIONS ON LEAD GENERATION IN 

21 SMALL-DOLLAR CONSUMER CREDIT TRANS22 ACTIONS. 

23 ‘‘(a) DEFINITIONS.—In this section— 

24 ‘‘(1) the terms ‘Internet access service’ and 

25 ‘Internet information location tool’ have the meanVerDate Sep 11 2014 19:35 Sep 30, 2024 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S5129.IS S5129

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1 ings given those terms in section 231(e) of the Com2 munications Act of 1934 (47 U.S.C. 231(e)); 

3 ‘‘(2) the term ‘sensitive personal financial infor4 mation’ means a social security number, financial 

5 account number, bank routing number, bank ac6 count number, or security or access code that is im7 mediately necessary to permit access to the financial 

8 account of an individual; and 

9 ‘‘(3) the term ‘small-dollar consumer credit 

10 transaction’ has the meaning given the term in sec11 tion 110(a). 

12 ‘‘(b) IDENTIFICATION INFORMATION.—Any person 

13 facilitating, brokering, arranging for, or gathering applica14 tions for the distribution of sensitive personal financial in15 formation in connection with a small-dollar consumer 

16 credit transaction shall prominently disclose information 

17 by which the person may be contacted or identified, includ18 ing for service of process and for identification of the reg19 istrant of any domain name registered or used. 

20 ‘‘(c) PROHIBITION ON LEAD GENERATION IN SMALL21 DOLLAR CONSUMER CREDIT TRANSACTIONS.—No person 

22 may facilitate, broker, arrange for, or gather applications 

23 for the distribution of sensitive personal financial informa24 tion in connection with a small-dollar consumer credit 


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1 transaction unless the person is directly providing the 

2 small-dollar consumer credit to a consumer. 

3 ‘‘(d) RULE OF CONSTRUCTION.— 

4 ‘‘(1) IN GENERAL.—Nothing in this section 

5 may be construed to limit the authority of the Bu6 reau to further restrict activities covered by this sec7 tion. 

8 ‘‘(2) CLARIFICATION.—For the purposes of this 

9 section, it shall not be considered facilitating the dis10 tribution of sensitive personal financial information 

11 in connection with a small-dollar consumer credit 

12 transaction to be engaged solely in one of the fol13 lowing activities: 

14 ‘‘(A) The provision of a telecommuni15 cations service, an Internet access service, or an 

16 Internet information location tool. 

17 ‘‘(B) The transmission, storage, retrieval, 

18 hosting, formatting, or translation (or any com19 bination thereof) of a communication, without 

20 selection or alteration of the content of the 

21 communication, except the deletion of a par22 ticular communication or material made by an23 other person in a manner that is consistent 

24 with section 230(c) of the Communications Act 

25 of 1934 (47 U.S.C. 230(c)).’’. 


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1 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

2 The table of sections for chapter 2 of the Truth in Lend3 ing Act (15 U.S.C. 1631 et seq.) is amended by adding 

4 at the end the following: 

‘‘140B. Restrictions on lead generation in small-dollar consumer credit transactions.’’. 

5 SEC. 5. STUDIES. 

6 (a) DEFINITIONS.—In this section— 

7 (1) the term ‘‘appropriate committees of Con8 gress’’ means— 

9 (A) the Committee on Banking, Housing, 

10 and Urban Affairs of the Senate; 

11 (B) the Committee on Indian Affairs of the 

12 Senate; 

13 (C) the Committee on Financial Services of 

14 the House of Representatives; and 

15 (D) the Committee on Natural Resources 

16 of the House of Representatives; and 

17 (2) the term ‘‘Indian Tribe’’ has the meaning 

18 given the term in section 4 of the Indian Self-Deter19 mination and Education Assistance Act (25 U.S.C. 

20 5304). 

21 (b) STUDY REQUIRED.—Not later than 180 days 

22 after the date of enactment of this Act, the Comptroller 

23 General of the United States shall conduct a study regard24 ing— 


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1 (1) the availability of capital on reservations of 

2 Indian Tribes; and 

3 (2) the impact that small-dollar consumer credit 

4 extended through internet and non-internet means 

5 to members of Indian Tribes has had on economic 

6 opportunity and wealth for members of Indian 

7 Tribes. 

8 (c) CONSULTATION.—In conducting the study re9 quired under subsection (b), the Comptroller General of 

10 the United States shall consult, as appropriate, with— 

11 (1) the Bureau of Consumer Financial Protec12 tion; 

13 (2) the Board of Governors of the Federal Re14 serve System; 

15 (3) the Director of the Bureau of Indian Af16 fairs; 

17 (4) federally recognized Indian Tribes; and 

18 (5) community development financial institu19 tions operating in Indian lands. 

20 (d) CONGRESSIONAL CONSIDERATION.—The Comp21 troller General of the United States shall submit to the 

22 appropriate committees of Congress the study required 

23 under subsection (b). 


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1 SEC. 6. RULEMAKING. 

2 Not later than 1 year after the date of enactment 

3 of this Act, the Bureau of Consumer Financial Protection 

4 shall adopt any final rules that are necessary to implement 

5 the provisions of this Act and the amendments made by 

6 this Act. 

Æ 


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