SAFE Lending Act of 2025

The SAFE Lending Act of 2025 strengthens consumer protections in electronic and small-dollar lending. It prohibits third parties from creating checks drawn from a consumer’s account without explicit written authorization (e.g., stopping unauthorized "remote" checks), requires small-dollar lenders (transactions under $5,000) to register with the Consumer Financial Protection Bureau, and bans fees for overdrafts on prepaid accounts. The bill also restricts lead generation for small-dollar loans by requiring lenders to directly provide credit, not just collect consumer data. A separate provision mandates a study on small-dollar lending impacts for Native American tribal communities within 180 days of enactment.