Summary

Strengthens consumer protections for small-dollar loans, prepaid accounts, and remotely created checks. It makes one-time electronic payments used to repay small-dollar loans covered by preauthorized transfer rules, lets people revoke check designations at any time, and blocks retaliation for exercising these rights. Requires small-dollar lenders to register with the consumer bureau and follow the borrower’s state limits on rates and fees, even for remote loans or loans by national banks. Bans overdraft fees on prepaid accounts, allows banks to decline transactions that exceed balances, and lets the consumer bureau restrict other confusing prepaid fees. Cracks down on third‑party lead generators by limiting the collection and brokering of sensitive financial data unless the company is the actual lender. Orders a federal study on small-dollar credit in Tribal communities and directs the consumer bureau to finalize implementing rules within one year.

Key Points

• Makes one‑time electronic loan repayments subject to preauthorized transfer safeguards under EFTA.
• Lets consumers revoke remotely created check designations at any time and bans retaliation.
• Requires small‑dollar lenders to register with the consumer bureau before lending.
• For remote and national bank small‑dollar loans, lenders must follow the borrower’s state rate/fee limits.
• Bans overdraft fees on prepaid accounts and allows declines of over‑balance transactions.
• Authorizes the consumer bureau to prohibit additional unfair or confusing prepaid‑account fees.
• Restricts small‑dollar loan lead generation by barring brokering/collection of sensitive data unless you’re the lender.
• Requires public disclosure of lead generators’ contact and domain registrant information.
• Orders a GAO study on small‑dollar credit’s effects and access to capital in Tribal communities.
• Directs the consumer bureau to finalize implementing rules within one year.

Categories & Tags