WASHINGTON, DC [9/20/24] – Congresswomen Suzanne Bonamici (D-OR), Pramila Jayapal (D-WA), and Senator Jeff Merkley (D-OR) introduced legislation to protect consumers from predatory payday lending practices.
El Stopping Abuse and Fraud in Electronic (SAFE) Lending Act of 2024 would safeguard consumers as predatory payday lenders have continued to flourish online despite laws passed by many states to stop abusive lending. Internet lenders hide behind layers of anonymously registered websites and “lead generators” to evade enforcement and can empty consumers’ bank accounts before they have a chance to assert their rights.
“Predatory payday lenders rob hard-working individuals and families of their resources at a time when they are financially vulnerable,” dijo la congresista Suzanne Bonamici. "El SAFE Lending Act would finally put an end to the unscrupulous practices payday lenders use to trap consumers in an unending cycle of debt.”
“Predatory payday lenders trap hardworking Americans in an inescapable vortex of debt,” dijo el senador Jeff Merkley. “Before we kicked payday lenders out of Oregon, they preyed on families in my blue-collar neighborhood. We need strong consumer protections to break this cycle of endless debt for families across America.”
“Payday lenders take advantage of working families, struggling to pay medical bills or rent, by trapping them in a seemingly endless cycle of debt,” said Congresswoman Pramila Jayapal. “I’m proud to lead this legislation with Congresswoman Bonamici that would protect consumers across the country by closing loopholes, increasing transparency, and putting an end to these predatory lending practices. Congress has a responsibility to protect hardworking people from bad actors, and that’s exactly what we will accomplish with our SAFE Lending Act.”
El SAFE Lending Act is endorsed by the National Consumer Law Center (on behalf of its low-income clients), Consumer Action, Consumer Federation of America, Main Street Alliance, U.S. PIRG, and UnidosUS. It would:
1. Give Consumers Control of Their Own Bank Accounts
- Prevent third parties from gaining control of a consumer’s account through remotely created checks (RCCs) – checks from a consumer’s bank account created by third parties. To prevent unauthorized RCCs, consumers would be able to preauthorize exactly who can create an RCC on his or her behalf, such as when traveling.
- Allow consumers to cancel an automatic withdrawal in connection with a small-dollar loan. This would prevent an internet payday lender from stripping a checking account without a consumer being able to stop it.
2. Permitir que los consumidores recuperen el control de su dinero y aumentar la transparencia
- Requerir que todos los prestamistas, incluidos los bancos, cumplan con las reglas estatales para los préstamos de poco dinero, similares al día de pago, que pueden ofrecer a los clientes en un estado. Muchos estados individuales actualmente tienen leyes mucho más estrictas que el gobierno federal. Actualmente no existe un tope federal para los intereses ni un límite para la cantidad de veces que se puede renovar un préstamo.
- Aumentar la transparencia y crear una mejor comprensión de la industria de préstamos pequeños al exigir que los prestamistas de día de pago se registren en la Oficina de Protección Financiera del Consumidor.
- Ban overdraft fees on prepaid cards issued by payday lenders who use them to gain access to consumers’ funds and to add to the already exorbitant costs of payday loans.
- Requerir que la CFPB supervise cualquier otro cargo asociado con las tarjetas prepagas de día de pago y emita una regla que prohíba cualquier otro cargo abusivo en las tarjetas prepagas.
3. Prohibir los generadores de plomo y los préstamos anónimos del día de pago
- Some websites describe themselves as payday lenders but are actually “lead generators” that collect applications and auction them to payday lenders and others. This practice is rife with abuse and has led to fraudulent debt collection.
- El SAFE Lending Act bans lead generators and anonymously registered websites in payday lending.
The bill also requires the Government Accountability Office to conduct a study on access to capital on Tribal lands and directs the Consumer Financial Protection Bureau to promulgate rules to implement this legislation.
Un resumen de una página de la SAFE Lending Act puede ser encontrado aquí. The full text of the legislation can be found aquí.
In the House, the legislation is cosponsored by Representatives Susan Wild (D-PA) and Katie Porter (D-CA).
In the Senate, the legislation is cosponsored by Senators Tammy Baldwin (D-WI), Richard Blumenthal (D-CT), Ron Wyden (D-OR), Chris Van Hollen (D-MD), Bernie Sanders (I-VT), Dick Durbin (D-IL), Edward J. Markey (D-MA), Martin Heinrich (D-NM), and Tina Smith (D-MN).
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