,,ii #aafth ,,congress #ast ,session ,s4 #fef ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #e1 #bjai,mr4 ,merkley 7for himself1 ,ms4 ,harris1 ,mr4 ,markey1 ,mr4 ,blumenthal1 ,mrs4 ,murray1 ,mr4 ,booker1 ,mr4 ,wyden1 ,ms4 ,duckworth1 ,mrs4 ,feinstein1 ,mr4 ,durbin1 ,mr4 ,udall1 ,mr4 ,van ,hollen1 ,ms4 ,smith1 ,mr4 ,sanders1 ,ms4 ,klobuchar1 ,mrs4 ,gillibrand1 ,ms4 ,baldwin1 ,mr4 ,cardin1 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 relating 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 #bjai or the ,,safe ,lending ,act of #bjai4 #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 subsection-- 7,a7 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 under this subsection1 that-- 7i7 is not created by the financial institution that holds the customer account from which the check is to be paid2 and 7ii7 does not bear a signature applied1 or purported to be applied1 by the person from whose account the check is to be paid2 and 7,b7 the term ,federal consumer financial law has the meaning given the term in section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha74 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 a consumer1 with that written designation specifically provided 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 ,a designation provided by a consumer 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 right by a consumer under-- 7i7 any ,federal consumer financial law2 or 7ii7 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 in the matter preceding paragraph 7#a71 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 7#a7 ,in general ,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-- 7#a7 means any transaction that extends credit that is-- 7,a7 made to a consumer in an amount that-- 7i7 is not more than-- 7,i7 #e1jjj2 or 7,,ii7 such greater amount as the ,bureau may1 by rule1 determine2 and 7ii7 shall 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-- 7i7 7,i7 other than an open end credit plan2 and 7,,ii7 payable in #a or more installments of less than #ab months 7or such longer period as the ,bureau may1 by rule1 determine72 7ii7 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 7iii7 any other plan as the ,bureau determines1 by rule2 and 7#b7 includes any action that facilitates1 brokers1 arranges1 or gathers applications for a transaction described in paragraph 7#a74 7b7 ,registration requirement ,a person shall register with the ,bureau before issuing credit in a small-dollar consumer credit transaction4 2 and 7,b7 in section #agc 7#ae ,u4,s4,c4 #afff;j71 by adding at the end the following3 7d7 ,notwithstanding any other provision 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 to which credit in the transaction is extended 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-- 7,a7 over the ,internet2 7,b7 by telephone2 7,c7 by facsimile2 7,d7 by mail2 7,e7 by electronic mail2 or 7,f7 through another electronic communication2 or 7#b7 conducted by a national bank4 4 7#b7 ,technical and conforming amendment ,the table of sections for chapter #a of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afja et seq47 is amended 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 prepaid account has the meaning given the term by rule of the ,bureau4 7#b7 ,prohibition ,with respect to the use of a prepaid account by a consumer-- 7,a7 it shall be unlawful for any person to charge the consumer a fee for an overdraft with respect to the prepaid account1 including a shortage of funds or a transaction processed for an amount exceeding the account balance of the prepaid account2 7,b7 any transaction for an amount that exceeds the account balance of the prepaid account 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 prepaid accounts4 4 #d4 ,restrictions on lead generation in small-dollar consumer credit transactions 7a7 ,in general ,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 terms ,internet access service and ,internet information location tool have the meanings given those terms in section #bca7;e7 of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bca7;e772 7#b7 the term sensitive personal financial information means a social security number1 financial account number1 bank routing number1 bank account number1 or security or access code that is immediately necessary to permit access to the financial account of an individual2 and 7#c7 the term small-dollar consumer credit transaction has the meaning given the term in section #aaj7;a74 7b7 ,identification information ,any person facilitating1 brokering1 arranging for1 or gathering applications for the distribution of 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 arrange for1 or gather applications for the distribution of sensitive personal financial information in connection with a small-dollar consumer credit transaction unless the person is directly providing the small-dollar consumer credit to a consumer4 7d7 ,rule of construction 7#a7 ,in general ,nothing in this section may be construed to limit the authority of the ,bureau to further restrict activities covered by this section4 7#b7 ,clarification ,for the purposes of this section1 it shall not be considered facilitating the distribution of sensitive personal financial information in connection with a small-dollar consumer credit transaction to be engaged solely in one of the following activities3 7,a7 ,the provision of a telecommunications service1 an ,internet access service1 or an ,internet information location tool4 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 the deletion of a particular communication or material made by another person in a manner that is consistent with section #bcj7;c7 of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bcj7;c774 4 7b7 ,technical and conforming amendment ,the table of sections for 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 transactions4 4 #e4 ,studies 7a7 ,definitions ,in this section-- 7#a7 the term appropriate committees of ,congress means-- 7,a7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate2 7,b7 the ,committee on ,indian ,affairs of the ,senate2 7,c7 the ,committee on ,financial ,services of the ,house of ,representatives2 and 7,d7 the ,committee on ,natural ,resources of the ,house of ,representatives2 and 7#b7 the term ,indian tribe has the meaning given the term in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #ecjd74 7b7 ,study required ,not later than #ahj days after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study regarding-- 7#a7 the availability of capital on reservations of ,indian tribes2 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 7c7 ,consultation ,in conducting the study required under subsection 7b71 the ,comptroller ,general of the ,united ,states 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 ,director of the ,bureau of ,indian ,affairs2 7#d7 federally recognized ,indian tribes2 and 7#e7 community development financial institutions operating in ,indian lands4 7d7 ,congressional consideration ,the ,comptroller ,general of the ,united ,states shall submit to the appropriate committees of ,congress the study required under subsection 7b74 #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 that are necessary to implement the provisions of this ,act and the amendments made by this ,act4