What's happening
This bill requires lenders to fully disclose interest rates and total loan costs in mail-loan check solicitations sent to non-customers.
Why it matters
Increases transparency for consumers. By requiring clear disclosure of the interest rate and total loan costs, the bill helps potential borrowers better understand what they’re committing to before accepting a mail-loan check.
Reduces risk of predatory lending. Full disclosure of costs and rates can help protect vulnerable individuals from inadvertently accepting high-interest loans that could trap them in debt.
Empowers borrowers to compare offers more effectively. The requirement for a cost table at multiple time frames (six months, one year, three years) lets consumers easily compare the true cost of the loan against other credit options.
May encourage more responsible lending practices. With lenders obligated to clearly spell out loan terms, there’s added pressure to offer fairer rates and terms, as deceptive or confusing offers become harder to disguise.
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
Disclose Loan Costs Upfront
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to banks
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3076
2017-2018 Regular Sessions
IN SENATE
January 19, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to full disclosure of interest rate on unsolicited mail-loan checks
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 9-t of the banking law, as added by chapter 309 of the laws of 2002, is amended 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 an expiration date of not more than six months on the mail-loan check; and
(e) provide in legible type on the front page of the solicitation letter, the interest rate or rates to be applied to such loan, and provide a table demonstrating the total cost of such loan at incremental dollar amounts, at the offered interest rate, over incremental periods of time of six months, one year, and three years.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06557-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to full disclosure of interest rate on unsolicited mail-loan checks
Purpose or general idea of bill
To provide in legible type on the front page of the solicitation letter, interest rate or rates to be applied to such loan, and provide a table demonstrating the total cost of such loan at incremental dollar amount.
Summary of specific provisions
Section 1 will amended subdivision 2 of section 9-t of the banking law, as added by Ch. 309 of the laws of 2002.
Justification
This bill would mandate lending institutions that send unsolicited mail-loan checks to clearly state the interest rate and the total cost in a dollar amount. Unfortunately, we have seen too many cases where individuals claim solicitation.
Prior legislative history
2015-16:S.1723 - Referred to Banks 2013-14:S.2910 - Referred to Banks 2011-12:S.1494 - Referred to Banks 2009-10:S.2285/A.3018 - Referred to Banks/Reported to Codes 2007-08:S.4527/A.6425 - Referred to Banks 2005-06:S.1173/A.6176 - Referred to Banks 2004-05:S.4175/A.7399 - Referred to Banks
Fiscal implications
To be determined.
Effective date
This act shall take effect on the sixtieth 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.