senate Bill S2910

2013-2014 Legislative Session

Requires lending institutions that send unsolicited mail-loan checks to clearly state the interest rate and the total cost of loan in a dollar amount

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to banks
Jan 25, 2013 referred to banks

S2910 - Bill Details

Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd ยง9-t, Bank L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1494
2009-2010: S2285

S2910 - Bill Texts

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Requires lending institutions that send unsolicited mail-loan checks to clearly state in solicitation letter the interest rate to be applied to such loan and to demonstrate the total cost of loan in a dollar amounts, at interest rate, over periods of six months, one year, and three years.

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BILL NUMBER:S2910

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: This bill would amend the banking law.

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: 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.

LEGISLATIVE HISTORY:

EFFECTIVE DATE: This act shall take effect on the sixtieth day after it
shall have become a law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2910

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 25, 2013
                               ___________

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 ASSEM-
BLY, 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 writ-
ten  statement,  in legible type reading "ONE FORM OF VALID PHOTOGRAPHIC
ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity  cash-
ing 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.
  S  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.
                                                           LBD06741-01-3

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