What's happening
This bill adds disclosure and consumer protection requirements for mail-loan checks, including ID, fee, interest rate, and consent provisions.
Why it matters
Requires clear disclosure of identification requirements, transaction fees, and interest rates on mail-loan checks. , making it harder for lenders to hide key terms and helping consumers better understand the costs and risks before using such loans.
Mandates that mail-loan checks can only be sent in response to a consumer’s explicit request or application. , which reduces the risk of people unknowingly incurring debt by depositing unsolicited checks they receive in the mail.
Specifies that not cashing, destroying, or returning a mail-loan check does *not* count as acceptance of a loan. , protecting consumers from being held liable for loans they did not agree to or use.
Imposes civil penalties on lenders who violate these new requirements. , providing a financial deterrent and giving regulators a tool to enforce consumer protections in the loan-by-mail industry.
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Who cares
Headline styles
Stop Unsolicited Loan Checks
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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.
Stop Unsolicited Loan Checks
In Senate Committee · Banks · Sponsor James Sanders Jr.
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3243
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
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.
LBD04663-01-9
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.