View or download PDF version of the letter.

February 13, 2018

The Stopping Abuse & Fraud in Electronic (SAFE) Lending Act of 2018 aims to close loopholes payday lenders use to trap consumers in an endless cycle of debt. More specifically, this bill would clarify that online lenders must comply with all state consumer protection laws; stop lenders from using borrowers’ bank account details to automatically withdraw funds; ban overdraft fees on prepaid cards; prohibit professional “lead generators” from trafficking payday loan applications; and, empower the Government Accountability Office (GAO) to study the impact of payday lending on tribal members, among other provisions.

The SAFE Lending Act of 2018 was introduced in the U.S. Senate by Senator Jeff Merkley (D-OR) and in the U.S. House of Representatives by Representatives Suzanne Bomanici (D-OR) and Elijah Cummings (D-MD).

In the Senate, the SAFE Lending Act is cosponsored by Senators Patty Murray (D-WA), Richard Blumenthal (D-CT), Bernie Sanders (I-VT), Ron Wyden (D-OR), Edward J. Markey (D-MA), Dianne Feinstein (D-CA), Cory Booker (D-NJ), Elizabeth Warren (D-MA), Tom Udall (D-NM), Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Tina Smith (D-MN), Kirsten Gillibrand (D-NY), Kamala Harris (D-CA), and Martin Heinrich (D-NM).

In the House, it is cosponsored by Representatives Earl Blumenauer (D-OR), Judy Chu (D-CA), Rosa DeLauro (D-CT), Keith Ellison (D-MN), Raúl Grijalva (D-AZ), Pramila Jayapal (D-WA), Eleanor Holmes Norton (D-DC), Jamie Raskin (D-MD), and Jan Schakowsky (D-IL).

The Stop The Debt Trap campaign enthusiastically endorses the SAFE Lending Act and along with the eighty organizations involved in the Stop The Debt Trap campaign released a letter of support for the bill.