S 2352 — PROTECTED Act

Bill Text

• Introduced Introduced in Senate Current html July 17, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill modifies the data collection requirements for small business loans under the Equal Credit Opportunity Act, including changes to what information is collected and how compliance is evaluated.

• 15 U.S.C. 1691c-2

  Any applicant → (1) In general.--Any applicant

  The bill specifies that the general conditions for applicants begin with a numbered subsection.

• 15 U.S.C. 1691c-2

  . → , and the financial institution may, when requesting such information, inform the applicant in writing that-- ``(A) the Bureau of Consumer Financial Protection requires the financial institution to ask, collect, and report such information to the Federal Government annually pursuant to this section; ``(B) the applicant's response will not affect the financial institution's evaluation of the request for credit; and ``(C) the applicant is not required to provide such information.''

  Additional requirements are added for how financial institutions must inform applicants about data collection.

• 15 U.S.C. 1691c-2

  The → (A) In general.--The

  This change introduces a numbered subsection into the management of data modifications.

• 15 U.S.C. 1691c-2(e)(2)

  C), (G), and (H) → C)

  Several subparagraphs are removed from the data collection requirements.

• 15 U.S.C. 1691c-2(e)(4)

  . → and after notice and an opportunity for comment, issue rules that include a description of what modifications and deletions the Bureau intends to make to the data and how such modifications and deletions will advance a privacy interest.

  The Bureau is mandated to provide notice and an opportunity for comment before modifying data requirements.

• 15 U.S.C. 1691c-2(e)

  ``(5) Prohibition on information not reported by an applicant.--A financial institution may not compile and maintain information described under subsection (b) that was determined by the financial institution using visual observation or any other manner other than being provided by an applicant. ``(6) Treatment of response rate.--The percentage of applicants providing a financial institution with the information described under subsection (b) may not be used as a factor in determining whether a financial institution is in compliance with the requirements under this subsection. ``(7) Safe harbor.--The Bureau may not enforce compliance with the requirements of this subsection during the 2-year period beginning on the effective date described in paragraph (8). ``(8) Effective date.--This subsection shall take effect on the date that is 3 years after the date on which the Bureau completes the cost-benefit analysis under chapter 6 of part I of title 5, United States Code (commonly referred to as the `Regulatory Flexibility Act') and subchapter I of chapter 35 of title 44, United States Code (commonly referred to as the `Paperwork Reduction Act')).''

  New provisions are added to limit what a financial institution can use for data, introduce a two-year safe harbor period, and set a future effective date based on a cost-benefit analysis.

• 15 U.S.C. 1691c-2(e)(9)

  ``(9) Definitions.--In this subsection: ``(A) Financial institution.--The term `financial institution'-- ``(i) means-- ``(I) any partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity that-- ``(aa) engages in any financial activity; and ``(bb) in each of the preceding 2 calendar years, originated not less than 2,500 credit transactions for small businesses; and ``(ii) does not include-- ``(I) any financial institution with less than $10,000,000,000 in assets; ``(II) a Farm Credit System institution chartered under and subject to the provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); ``(III) community development financial institutions, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702); or ``(IV) lenders involved in equipment and vehicle financing.'

  Definitions are provided to clarify which entities are considered financial institutions within this context.

Action History

1. July 17, 2025

   Introduced in Senate

2. July 17, 2025

   Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsors

• John Boozman · Cosponsor
• Katie Boyd Britt · Primary

Subjects