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History
- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
States the maximum rate of interest on credit cards shall not exceed eighteen percent annually
In Assembly Committee · Banks · Sponsor Annette Robinson
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S1627
Title of bill
An act to amend the banking law, in relation to the maximum rate of interest on credit cards
Purpose or general idea of bill
To set a cap on current credit card interest rates in the State of New York more in line with interest rates for other credit rates in other areas.
Summary of specific provisions
Creates a new Section 14-g to the Banking law and defines:
1. The term "credit card". 2. Establishes a maximum rate of interest of fifteen percent (18%) and provides for raising the rate according to a time and prime rate formula. 3. Makes maximum interest rate for credit cards applicable to all persons and corporations in New York.
Effects of present law which this bill would alter
This bill amends, by implication Section 14(A) of the Banking law, by imposing a cap specifically on interest rates of credit cards.
Justification
In today's economy, with present interest rates for home mortgages at eight percent (8%), consumers should not have to tolerate being charged rates in excess of twice the prime rate to use a credit card. In addition, the industry has shown no inclination to regulate itself responsibly in terms of lowering its rates and, therefore, the State must protect the interest of consumers.
Prior legislative history
S.1906A of 2007 01/29/07 Referred to Banks S.96 of 2009 01/07/09 Referred to Banks 01/06/10 Referred to Banks
Fiscal implications for state and local government
None.
Effective date
This act shall take effect on the thirtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.