Skip to content
S7425Senate2013-2014 SessionSame asA1111

Requires banks to disclose negative consequences of establishing alternative payment schedule on a loan

Sponsor James Sanders Jr.SD-10Affects Finance
Status
In Senate Committee
Banks
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Banks

What's happening

Writing a plain-English summary… Track this bill to get it by email.

Why it matters

The daily · weekday mornings

Albany, before your first meeting.

Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.

Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.

Who cares

Headline styles

Sponsors

Primary sponsor
James Sanders Jr.

Senator · Senate District 10

No co-sponsors yet.

History

  1. 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.

A1111Assembly

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.