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Who cares
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Sponsors
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History
- Referred to banks
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to prohibiting the use of unsolicited mail-loan checks; and to repeal section 9-t of such law relating thereto
Purpose
To end the unsolicited practice of inadvertent third party subscriptions when a check is endorsed.
Summary of provisions
Section 9-t of the banking law is repealed and a new section 9-t is added, causing no lending institution the right to issue an unsolicited mail-loan check.
Existing law
Repeal former section 9-t and add new section 9-t.
Justification
To make it illegal for banks to solicit via a "monetary instrument" (ie. checks) on a third party's behalf. Recently, a constituent was mailed a check by his bank. The check was made out in the amount of $10.00. Upon endorsing the check, this constituent, without realizing or meaning to do so, automatically signed himself up for a service policy, namely home protection. The very next month, there was an automatic deduction of $40 per month from his checking account for this service. This particular individual was able to go through the New York State Attorney General's Office and recoup the money lost, but to further protect our unassuming residents, it is imperative we institute a new policy to make it illegal for banks to solicit in this manner.
Legislative history
New legislation.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.