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Released: March 07, 2013

Bill to stop abuse and fraud in payday lending

Source: Albany Tribune

Reps. Suzanne Bonamici (D-Oregon) and Elijah E. Cummings (D-Maryland) introduced Wednesday the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act of 2013 to help protect consumers from predatory lending practices. The legislation would enable consumers to stop automatic bank withdrawals from payday lenders, require that lenders abide by the laws of the state in which they are lending, ban third party “lead generators” that collect applications and auction them to payday lenders, and provide enhanced enforcement authority to federal regulators.

The SAFE Lending Act of 2013 would:

• Ensure That Consumers Have Control of Their Own Bank Accounts by preventing third parties from gaining control of a consumer’s account through remotely created checks (RCCs). It also enables consumers to cancel a debit in connection with a small-dollar (payday) loan to prevent an Internet payday lender from emptying a checking account;

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