,,ii #aadth ,,congress #b;d ,session ,s4 #bgfj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #g1 #bjaf,mr4 ,merkley 7for himself1 ,mr4 ,udall1 ,mr4 ,sanders1 ,mr4 ,franken1 ,mrs4 ,murray1 ,mr4 ,wyden1 ,mr4 ,durbin1 ,mr4 ,blumenthal1 ,ms4 ,warren1 ,ms4 ,baldwin1 ,mr4 ,markey1 ,mr4 ,booker1 and ,mr4 ,heinrich7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,truth in ,lending ,act to address certain issues related to the extension of consumer credit1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stopping ,abuse and ,fraud in ,electronic ,lending ,act of #bjaf or the ,,safe ,lending ,act of #bjaf4 #b4 ,consumer control over bank accounts 7a7 ,prohibiting unauthorized remotely created checks ,section #ije of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afic;c7 is amended by adding at the end the following3 7d7 ,limitations on remotely created checks 7#a7 ,definition ,in this subsection1 the term remotely created check means a check1 including a paper or electronic check and any other payment order that the ,bureau1 by rule1 determines is appropriately covered by this subsection1 that-- 7,a7 is not created by the financial institution that holds the customer account from which the check is to be paid2 and 7,b7 does not bear a signature applied1 or purported to be applied1 by the person from whose account the check is to be paid4 7#b7 ,limitations ,subject to the limitations in paragraph 7#c7 and any additional limitations that the ,bureau may establish1 by rule1 a remotely created check may only be issued by a person designated in writing by the consumer with the designation specifically provided in writing by the consumer to the insured depository institution at which the consumer maintains the account from which the check is to be drawn4 7#c7 ,additional limitations 7,a7 ,in general ,an authorization provided under paragraph 7#b7 may be revoked at any time by the consumer4 7,b7 ,consumer financial protection laws ,no payment order1 including a remotely created check1 may be issued by any person in response to the exercise of1 or attempt to exercise1 any rights by a consumer under any ,federal consumer financial law1 as defined in section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha71 or any other provision of any law or regulation within the jurisdiction of the ,bureau4 4 7b7 ,consumer ,protections for ,certain ,one-,time ,electronic ,fund ,transfers ,section #iac of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afick7 is amended-- 7#a7 by inserting 7a7 ,in general4-- before ,no person2 7#b7 in subsection 7a77#a71 as so designated1 by striking preauthorized electronic fund transfers and inserting an electronic fund transfer2 and 7#c7 by adding at the end the following3 7b7 ,treatment for electronic fund transfers in credit extensions ,if a consumer voluntarily agrees to repay an extension of a small-dollar consumer credit transaction1 as defined in section #aaj7;a7 of the ,truth in ,lending ,act1 by means of an electronic fund transfer1 the electronic fund transfer shall be treated as a preauthorized electronic fund transfer subject to the protections of this title4 4 #c4 ,transparency and consumer empowerment in small-dollar lending 7a7 ,small-,dollar consumer credit transactions ,the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afja et seq47 is amended-- 7#a7 by inserting after section #aji 7#ae ,u4,s4,c4 #afjh7 the following3 #aaj4 ,registration requirement for small-dollar lenders 7a7 ,definition ,in this section1 the term small-dollar consumer credit transaction means any transaction that extends1 facilitates1 brokers1 arranges1 or gathers applications for credit that is-- 7#a7 made to a consumer in an amount of not more than #e1jjj1 or such greater amount as the ,bureau may1 by rule1 determine1 with the amount to be adjusted annually to reflect changes in the ,consumer ,price ,index for all urban consumers published by the ,department of ,labor2 and 7#b7 extended pursuant to an agreement that is-- 7,a7 7i7 other than an open-end credit plan2 and 7ii7 payable in #a or more installments of less than #ab months 7or such longer period as the ,bureau may1 by rule1 determine72 7,b7 an open-end credit plan in which each advance is fully repayable within a defined time or in connection with a defined event1 or both2 or 7,c7 any other plan as the ,bureau determines1 by rule4 7b7 ,registration requirement ,a person shall register with the ,bureau before issuing credit in a small-dollar consumer credit transaction4 2 7#b7 in section #agc 7#ae ,u4,s4,c4 #afff;j71 by adding at the end the following3 7d7 ,notwithstanding any other provisions of this title1 any small-dollar consumer credit transaction1 as defined in section #aaj7;a71 shall comply with the laws of the ,state in which the consumer resides with respect to annual percentage rates1 interest1 fees1 charges1 and such other similar or related matters as the ,bureau may1 by rule1 determine if the small-dollar consumer credit transaction is-- 7#a7 made over-- 7,a7 the ,internet2 7,b7 telephone2 7,c7 facsimile2 7,d7 mail2 7,e7 electronic mail2 or 7,f7 other electronic communication2 or 7#b7 conducted by a national bank4 2 and 7#c7 in the table of sections of chapter #a1 by inserting after the item relating to section #aji the following3 #aaj4 ,registration requirement for small-dollar lenders4 4 7b7 ,prohibition on certain fees ,section #iae of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #aficl-#a7 is amended-- 7#a7 by redesignating subsection 7d7 as subsection 7e72 and 7#b7 by inserting after subsection 7c7 the following3 7d7 ,additional fees prohibited 7#a7 ,definition ,in this subsection1 the term general-use prepaid card has the meaning given the term-- 7,a7 in subsection 7a77#b72 or 7,b7 by rule of the ,bureau4 7#b7 ,prohibition ,with respect to the use of a general-use prepaid card by a consumer-- 7,a7 it shall be unlawful for any person to charge the consumer a fee for an overdraft1 including a shortage of funds or a transaction processed for an amount exceeding the account balance on the general-use prepaid card2 7,b7 any transaction for an amount exceeding the account balance on the general-use prepaid card may be declined1 except that the consumer may not be charged a fee for that purpose2 and 7,c7 the ,bureau may1 by rule1 prohibit the charging of any fee so that the ,bureau may-- 7i7 prevent unfair1 deceptive1 or abusive practices2 and 7ii7 promote the ability of the consumer to understand and compare the costs of general-use prepaid cards4 4 #d4 ,restrictions on lead generation in small-dollar consumer credit transactions ,chapter #b of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afca et seq47 is amended by adding at the end the following3 #adj;,b4 ,restrictions on lead generation in small-dollar consumer credit transactions 7a7 ,definitions ,in this section-- 7#a7 the term sensitive personal financial information means the social security number1 financial account number1 bank routing number1 bank account number1 or any required security or access code that is immediately necessary to permit access to the financial account of an individual2 and 7#b7 the term small-dollar consumer credit transaction has the meaning given the term in section #aaj7;a74 7b7 ,identification information ,any person facilitating1 brokering1 arranging1 gathering applications for1 or distributing sensitive personal financial information in connection with a small-dollar consumer credit transaction shall prominently disclose information by which the person may be contacted or identified1 including for service of process and for identification of the registrant of any domain name registered or used4 7c7 ,prohibition on lead generation in small-,dollar consumer credit transactions ,no person may facilitate1 broker1 arrange1 gather applications for1 or distribute sensitive personal financial information in connection with a small-dollar consumer credit transaction1 unless the person is directly providing the small-dollar consumer credit to the consumer4 7d7 ,rule of construction 7#a7 ,in general ,nothing in this section may be interpreted to limit the authority of the ,bureau to further restrict activities covered by this section4 7#b7 ,clarification ,it shall not be considered facilitating in connection with a small-dollar consumer credit transaction to be engaged solely in #a of the following activities3 7,a7 ,the provision of a telecommunications service1 or of an ,internet access service or ,internet information location tool 7as those terms are defined in section #bca of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bca774 7,b7 ,the transmission1 storage1 retrieval1 hosting1 formatting1 or translation 7or any combination thereof7 of a communication1 without selection or alteration of the content of the communication1 except that deletion of a particular communication or material made by another person in a manner consistent with section #bcj7;c7 of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bcj7;c774 4 #e4 ,studies 7a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,government ,accountability ,office 7in this section referred to as the ,,gao7 shall conduct a study regarding-- 7#a7 the availability of capital on reservations of ,indian tribes 7as defined in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #dej;b772 and 7#b7 the impact that small-dollar consumer credit extended through ,internet and non-,internet means to members of ,indian tribes has had on economic opportunity and wealth for members of ,indian tribes4 7b7 ,consultation ,in conducting the study described in subsection 7a71 the ,,gao shall consult1 as appropriate1 with-- 7#a7 the ,bureau of ,consumer ,financial ,protection2 7#b7 the ,board of ,governors of the ,federal ,reserve ,system2 7#c7 the ,bureau of ,indian ,affairs2 7#d7 federally recognized ,indian tribes2 and 7#e7 community development financial institutions operating in ,indian lands4 7c7 ,congressional consideration ,the study described in subsections 7a7 and 7b7 shall be presented to the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,indian ,affairs of the ,senate and the ,committee on ,financial ,services and the ,committee on ,natural ,resources of the ,house of ,representatives4 #f4 ,rulemaking ,not later than #a year after the date of enactment of this ,act1 the ,bureau of ,consumer ,financial ,protection shall adopt any final rules necessary to implement the provisions of this ,act and the amendments made by this ,act4