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Sponsors
No co-sponsors yet.
History
- 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.
Requires banks to disclose negative consequences of establishing alternative payment schedule on a loan
In Assembly Committee · Banks · Sponsor Carl Heastie
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7425
Title of bill
An act to amend the banking law, in relation to requir- ing banks to disclose any negative consequences an alternative loan payment schedule may have on credit scores
Summary of provisions
Amends section 129-a of the banking law to require the disclosure of negative consequences an alternative payment schedule, agreed to by a bank or trust company, would have on a custom- er's credit rating.
Justification
This legislation addresses the practice some banks use by which they arrange an alternative payment schedule with a customer and leave the customer with the impression that this arrangement will prevent the financial institution from hurting the customer's credit rating. When an alternative payment schedule is arranged, a bank may still report a customer as being late on their payments even though they have worked out a compromised alternative. Most customers are unaware of this and don't that the alternative payment schedule is really not help- ing them preserve their credit rating.
Prior legislative history
A.3240 of the 2012 legislative session.
Fiscal implications
None to the state.
Effective date
This act shall take effect in 90 days 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.