text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Stopping Abuse and Fraud in 
  Electronic Lending Act of 2018'' or the ``SAFE Lending Act of 2018''.
  
  SEC. 2. CONSUMER CONTROL OVER BANK ACCOUNTS.
  
      (a) Prohibiting Unauthorized Remotely Created Checks.--Section 905 
  of the Electronic Fund Transfer Act (15 U.S.C. 1693c) is amended by 
  adding at the end the following:
      ``(d) Limitations on Remotely Created Checks.--
              ``(1) Definition.--In this subsection--
                      ``(A) the term `remotely created check' means a 
                  check, including a paper or electronic check and any 
                  other payment order that the Bureau, by rule, 
                  determines is appropriately covered under this 
                  subsection, that--
                              ``(i) is not created by the financial 
                          institution that holds the customer account 
                          from which the check is to be paid; and
                              ``(ii) does not bear a signature applied, 
                          or purported to be applied, by the person from 
                          whose account the check is to be paid; and
                      ``(B) the term `Federal consumer financial law' has 
                  the meaning given the term in section 1002 of the 
                  Consumer Financial Protection Act of 2010 (12 U.S.C. 
                  5481).
              ``(2) Limitations.--Subject to the limitations in paragraph 
          (3) and any additional limitations that the Bureau may 
          establish, by rule, a remotely created check may only be issued 
          by a person designated in writing by a consumer 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 drawn.
              ``(3) Additional limitations.--
                      ``(A) In general.--A designation provided by a 
                  consumer under paragraph (2) may be revoked at any time 
                  by the consumer.
                      ``(B) Consumer financial protection laws.--No 
                  payment order, including a remotely created check, may 
                  be issued by any person in response to the exercise of, 
                  or attempt to exercise, any right by a consumer under--
                              ``(i) any Federal consumer financial law; 
                          or
                              ``(ii) any other provision of any law or 
                          regulation within the jurisdiction of the 
                          Bureau.''.
      (b) Consumer Protections for Certain One-Time Electronic Fund 
  Transfers.--Section 913 of the Electronic Fund Transfer Act (15 U.S.C. 
  1693k) is amended--
              (1) in the matter preceding paragraph (1), by inserting 
          ``(a) In General.--'' before ``No person'';
              (2) in subsection (a)(1), as so designated, by striking 
          ``preauthorized electronic fund transfers'' and inserting ``an 
          electronic fund transfer''; and
              (3) by adding at the end the following:
      ``(b) Treatment for Electronic Fund Transfers in Credit 
  Extensions.--If a consumer voluntarily agrees to repay an extension of 
  a small-dollar consumer credit transaction, as defined in section 
  110(a) of the Truth in Lending Act, by means of an electronic fund 
  transfer, the electronic fund transfer shall be treated as a 
  preauthorized electronic fund transfer subject to the protections of 
  this title.''.
  
  SEC. 3. TRANSPARENCY AND CONSUMER EMPOWERMENT IN SMALL-DOLLAR LENDING.
  
      (a) Small-Dollar Consumer Credit Transactions.--
              (1) In general.--The Truth in Lending Act (15 U.S.C. 1601 
          et seq.) is amended--
                      (A) by inserting after section 109 (15 U.S.C. 1608) 
                  the following:
  
  ``SEC. 110. REGISTRATION REQUIREMENT FOR SMALL-DOLLAR LENDERS.
  
      ``(a) Definition.--In this section, the term `small-dollar consumer 
  credit transaction'--
              ``(1) means any transaction that extends credit that is--
                      ``(A) made to a consumer in an amount that--
                              ``(i) is not more than--
                                      ``(I) $5,000; or
                                      ``(II) such greater amount as the 
                                  Bureau may, by rule, determine; and
                              ``(ii) shall be adjusted annually to 
                          reflect changes in the Consumer Price Index for 
                          all urban consumers published by the Department 
                          of Labor; and
                      ``(B) extended pursuant to an agreement that is--
                              ``(i)(I) other than an open end credit 
                          plan; and
                              ``(II) payable in one or more installments 
                          of less than 12 months (or such longer period 
                          as the Bureau may, by rule, determine);
                              ``(ii) an open end credit plan in which 
                          each advance is fully repayable within a 
                          defined time or in connection with a defined 
                          event, or both; or
                              ``(iii) any other plan as the Bureau 
                          determines, by rule; and
              ``(2) includes any action that facilitates, brokers, 
          arranges, or gathers applications for a transaction described 
          in paragraph (1).
      ``(b) Registration Requirement.--A person shall register with the 
  Bureau before issuing credit in a small-dollar consumer credit 
  transaction.''; and
                      (B) in section 173 (15 U.S.C. 1666j), by adding at 
                  the end the following:
      ``(d) Notwithstanding any other provisions of this title, any 
  small-dollar consumer credit transaction, as defined in section 110(a), 
  shall comply with the laws of the State in which the consumer to which 
  the transaction is made resides with respect to annual percentage 
  rates, interest, fees, charges, and such other similar or related 
  matters as the Bureau may, by rule, determine if the small-dollar 
  consumer credit transaction is--
              ``(1) made over--
                      ``(A) the Internet;
                      ``(B) telephone;
                      ``(C) facsimile;
                      ``(D) mail;
                      ``(E) electronic mail; or
                      ``(F) other electronic communication; or
              ``(2) conducted by a national bank.''.
              (2) Technical and conforming amendment.--The table of 
          sections for chapter 1 of the Truth in Lending Act (15 U.S.C. 
          1601 et seq.) is amended by inserting after the item relating 
          to section 109 the following:
  
  ``110. Registration requirement for small-dollar lenders.''.
      (b) Prohibition on Certain Fees.--Section 915 of the Electronic 
  Fund Transfer Act (15 U.S.C. 1693l-1) is amended--
              (1) in subsection (a)(2)(A), in the matter preceding clause 
          (i), by striking ``The term'' and inserting ``Subject to 
          subsection (d)(1), the term'';
              (2) by redesignating subsection (d) as subsection (e); and
              (3) by inserting after subsection (c) the following:
      ``(d) Additional Fees Prohibited.--
              ``(1) Definition.--In this subsection, the term `prepaid 
          account' has the meaning given the term by rule of the Bureau.
              ``(2) Prohibition.--With respect to the use of a prepaid 
          account by a consumer--
                      ``(A) it shall be unlawful for any person to charge 
                  the consumer a fee for an overdraft, including a 
                  shortage of funds or a transaction processed for an 
                  amount exceeding the account balance of the prepaid 
                  account;
                      ``(B) any transaction for an amount exceeding the 
                  account balance of the prepaid account may be declined, 
                  except that the consumer may not be charged a fee for 
                  that purpose; and
                      ``(C) the Bureau may, by rule, prohibit the 
                  charging of any fee so that the Bureau may--
                              ``(i) prevent unfair, deceptive, or abusive 
                          practices; and
                              ``(ii) promote the ability of the consumer 
                          to understand and compare the costs of prepaid 
                          accounts.''.
  
  SEC. 4. RESTRICTIONS ON LEAD GENERATION IN SMALL-DOLLAR CONSUMER CREDIT 
                TRANSACTIONS.
  
      (a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C. 
  1631 et seq.) is amended by adding at the end the following:
  
  ``SEC. 140B. RESTRICTIONS ON LEAD GENERATION IN SMALL-DOLLAR CONSUMER 
                CREDIT TRANSACTIONS.
  
      ``(a) Definitions.--In this section--
              ``(1) the terms `Internet access service' and `Internet 
          information location tool' have the meanings given those terms 
          in section 231(e) of the Communications Act of 1934 (47 U.S.C. 
          231(e));
              ``(2) the term `sensitive personal financial information' 
          means a Social Security number, financial account number, bank 
          routing number, bank account number, or security or access code 
          that is immediately necessary to permit access to the financial 
          account of an individual; and
              ``(3) the term `small-dollar consumer credit transaction' 
          has the meaning given the term in section 110(a).
      ``(b) Identification Information.--Any person facilitating, 
  brokering, arranging for, 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 
  identified, including for service of process and for identification of 
  the registrant of any domain name registered or used.
      ``(c) Prohibition on Lead Generation in Small-Dollar Consumer 
  Credit Transactions.--No person may facilitate, broker, arrange for, 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 consumer.
      ``(d) Rule of Construction.--
              ``(1) In general.--Nothing in this section may be construed 
          to limit the authority of the Bureau to further restrict 
          activities covered by this section.
              ``(2) Clarification.--For the purposes of this section, 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 activities:
                      ``(A) The provision of a telecommunications 
                  service, an Internet access service, or an Internet 
                  information location tool.
                      ``(B) The transmission, storage, retrieval, 
                  hosting, formatting, or translation (or any combination 
                  thereof) of a communication, without selection or 
                  alteration of the content of the communication, except 
                  the deletion of a particular communication or material 
                  made by another person in a manner that is consistent 
                  with section 230(c) of the Communications Act of 1934 
                  (47 U.S.C. 230(c)).''.
      (b) Technical and Conforming Amendment.--The table of sections for 
  chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is 
  amended by adding at the end the following:
  
  ``140B. Restrictions on lead generation in small-dollar consumer credit 
                              transactions.''.
  
  SEC. 5. STUDIES.
  
      (a) Definitions.--In this section--
              (1) the term ``appropriate committees of Congress'' means--
                      (A) the Committee on Banking, Housing, and Urban 
                  Affairs of the Senate;
                      (B) the Committee on Indian Affairs of the Senate;
                      (C) the Committee on Financial Services of the 
                  House of Representatives; and
                      (D) the Committee on Natural Resources of the House 
                  of Representatives; and
              (2) the term ``Indian tribe'' has the meaning given the 
          term in section 4 of the Indian Self-Determination and 
          Education Assistance Act (25 U.S.C. 5304).
      (b) Study Required.--Not later than 180 days after the date of 
  enactment of this Act, the Comptroller General of the United States 
  shall conduct a study regarding--
              (1) the availability of capital on reservations of Indian 
          tribes; and
              (2) 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 tribes.
      (c) Consultation.--In conducting the study required under 
  subsection (b), the Comptroller General of the United States shall 
  consult, as appropriate, with--
              (1) the Bureau of Consumer Financial Protection;
              (2) the Board of Governors of the Federal Reserve System;
              (3) the Director of the Bureau of Indian Affairs;
              (4) federally recognized Indian tribes; and
              (5) community development financial institutions operating 
          in Indian lands.
      (d) Congressional Consideration.--The Comptroller General of the 
  United States shall submit to the appropriate committees of Congress 
  the study required under subsection (b).
  
  SEC. 6. RULEMAKING.
  
      Not later than 1 year after the date of enactment of this Act, 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 Act.
target: Stopping Abuse and Fraud in Electronic Lending Act of 2018 or the SAFE Lending Act of 2018  This bill amends the Electronic Fund Transfer Act and the Truth in Lending Act. The bill revises requirements related to consumer financial protection and small-dollar lending, including matters concerning remotely created checks, electronic fund transfers, registration of small-dollar lenders, overdraft fees, and the collection of personal information. 
feat_title: Stopping Abuse and Fraud in Electronic Lending Act of 2018