What does Preamble of PROTECTED Act do?

This bill proposes to amend the Equal Credit Opportunity Act. The amendment aims to modify requirements related to small business loan data collection. The bill's stated purpose is 'to modify the requirements associated with small business loan data collection, and for other purposes.'

What does SHORT TITLE. of PROTECTED Act do?

This bill is formally titled the Preventing Regulatory Overreach to Empower Communities to Thrive and Ensure Data Privacy Act, also known as the PROTECTED Act.

What does SMALL BUSINESS LOAN DATA COLLECTION. of PROTECTED Act do?

This section amends Section 704B of the Equal Credit Opportunity Act. It requires financial institutions to inform applicants that the Bureau of Consumer Financial Protection requires data collection and reporting. Applicants are informed their response will not affect credit evaluation and they are not required to provide the information. Certain subparagraphs in subsection (e) are struck and redesignated. The Bureau is required to issue rules with notice and comment before deleting or modifying data, advancing a privacy interest. Financial institutions may not compile information determined through visual observation or other means besides applicant provision. Response rates may not be used to determine compliance. The Bureau may not enforce compliance for two years after the effective date. The effective date is three years after the Bureau completes cost-benefit and paperwork reduction analyses. The definition of 'financial institution' is established, including origination of at least 2,500 small business credit transactions annually and excluding institutions below a certain asset threshold. The definition of 'small business' is established as an entity with gross annual revenues not exceeding $1,000,000.

Back to bills

PROTECTED Act

Last updated: 7/17/2025 · Introduced: 7/17/2025

Author: Katie Britt (R-AL)

TL;DR (AI)

The PROTECTED Act amends the Equal Credit Opportunity Act to require financial institutions to notify small business loan applicants that the Bureau of Consumer Financial Protection collects data, assuring applicants that their response won't impact credit evaluation.
This bill establishes definitions for 'financial institution' (based on transaction volume and asset size) and 'small business' (based on annual revenue), clarifying the scope of data collection requirements.
The Bureau of Consumer Financial Protection is restricted from enforcing compliance for two years after the bill's effective date, which is contingent on completing cost-benefit analyses.

119th Congressin committeeOfficial page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account