What's happening
This bill requires clearer disclosures and consumer consent for mail-loan checks, and prohibits sending them unless requested.
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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
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.415
- 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 Assembly Committee · Banks · Sponsor J. Gary Pretlow
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4628
2019-2020 Regular Sessions
IN SENATE
March 18, 2019
Introduced by Sen. SANDERS -- 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 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.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to mail- loan checks
Purpose or general idea of bill
Prohibits banking organizations from issuing mail-loan checks without request or application, in order to protect consumers from potentially unsafe banking products.
Summary of specific provisions
This bill amends subdivisions 2 and 3 of section 9-t of the banking law and adds a new subdivision 4 to section 9-t of the banking law.
Justification
The practice of mailing unsolicited loan checks to consumers can prove confusing to the consumer with respect to the obligation flowing from his or her endorsement. Additionally, an unsolicited loan check received by mail may be cashed by an unknown payee obligating the payee to repay the loan. This bill would negate the problems noted above.
Prior legislative history
2017/2018 A1126 referred to codes 2015/2016 A1645 Ordered to third reading rules 2011: A.2850(Pretlow)- Referred to Assembly Banks 2009/10: A.2604(Pretlow)-Passed Assembly 2008/07: A.3163A(Pretlow)- Referred to Assembly Banks 2006/05: A.4063-(Pretlow)- Referred to Assembly Banks
Fiscal implications for state and local governments
None
Effective date
This act shall take effect on the one hundred twentieth day after it becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.