What's happening
This bill requires mail-loan checks to include more disclosures, prohibits unsolicited mail-loan checks, and clarifies non-acceptance by non-use.
Why it matters
Increases transparency and consumer protection. by requiring mail-loan checks to clearly disclose the transaction fee, interest rate, and any other information the banking superintendent may require, helping recipients better understand the true cost of accepting such checks.
Reduces unwanted financial solicitations. by prohibiting lending institutions from sending mail-loan checks unless specifically requested or applied for, which can help protect individuals from inadvertently taking on debt they did not seek.
Clarifies legal responsibility for unsolicited checks. by making it explicit that simply not destroying or returning a mail-loan check does not mean the recipient has accepted the loan, reducing potential confusion and liability for consumers.
Introduces stronger enforcement measures. by establishing civil penalties (up to $500 per violation) for institutions that violate the new rules, providing a deterrent against noncompliance and supporting consumer rights.
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Who cares
Headline styles
Stop Unsolicited Loan Checks
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to codes
- Reported referred to rules
- Reported referred to codes
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1126
2017-2018 Regular Sessions
IN ASSEMBLY
January 10, 2017
Introduced by M. of A. PRETLOW -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to mail-loan checks
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 2 and 3 of section 9-t of the banking law, as added by chapter 309 of the laws of 2002, are amended and a new subdivision 4 is added to read as follows:
2. Any lending institution which issues mail-loan checks shall:
(a) include on the face of each check issued to a non-customer a written statement, in legible type reading "ONE FORM OF VALID PHOTOGRAPHIC ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cashing or accepting a mail-loan check for deposit may require more than one form of identification;
(b) make no reference on the outside of the envelope containing a mail-loan check that indicates that a check is enclosed within such envelope;
(c) provide that all mail-loan checks shall be non-transferable; and
(d) include the transaction fee and interest rate and an expiration date of not more than six months on the mail-loan check, as well as any additional information that the superintendent may require.
3. No lending institution shall issue a mail-loan check, except in response to a request or application therefor.
4. Failure to destroy or return a mail-loan check shall not constitute acceptance of the check.
5. Any lending institution which mails a mail-loan check in violation of the provisions of this section shall be liable for a civil penalty not to exceed five hundred dollars for each such violation.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04434-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.