|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 08, 2014||referred to banks|
|Mar 05, 2013||referred to banks|
senate Bill S4036
Archive: Last Bill Status -
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S4036 - Details
S4036 - Summary
Prohibits foreign banking corporations from issuing payday loans; defines payday loans as any transaction in which a short-term cash advance is made to a consumer in exchange for (i) a consumer's personal check or share draft, in the amount of an advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or (ii) a consumer's authorization to debit the consumer's transaction account, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.
S4036 - Sponsor Memo
BILL NUMBER:S4036 TITLE OF BILL: An act to amend the banking law and the general obligations law, in relation to prohibiting foreign banking corporations from engaging in high-cost payday loans PURPOSE OR GENERAL IDEA OF BILL: To prohibit foreign banking corporations from issuing payday loans. SUMMARY OF SPECIFIC PROVISIONS: Amends § 202 of the Banking Law and § 5 of the general obligations law to accomplish the above stated purpose. EXPLANATION OF THE LEGISLATION: Banking corporations that are outside of New York should be prohibited from making payday loans because the annual percentage rates on these loans are astronomical, many lenders use shady tactics to collect payments, and they also target those with low income. According to recent studies the predatory lending industry has been rapidly growing across the country. This includes payday loan companies which offer small sum, short-term, high-rate, unsecured personal loans. These loans go by many names, including "payday loans," "cash advance loans," "postdated check loans" or "deferred deposits." Payday lenders
S4036 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 4036 2013-2014 Regular Sessions I N S E N A T E March 5, 2013 ___________ Introduced by Sen. SMITH -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law and the general obligations law, in relation to prohibiting foreign banking corporations from engaging in high-cost payday loans THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The banking law is amended by adding a new section 202-k to read as follows: S 202-K. PROHIBITION OF PAYDAY LOANS. 1. NO FOREIGN BANKING CORPO- RATION SHALL MAKE ANY PAYDAY LOAN, EITHER DIRECTLY OR INDIRECTLY, OR MAKE ANY LOAN TO ANY OTHER LENDER FOR PURPOSES OF FINANCING A PAYDAY LOAN OR REFINANCING OR EXTENDING ANY PAYDAY LOAN. 2. FOR PURPOSES OF THIS SECTION "PAYDAY LOAN" MEANS ANY TRANSACTION IN WHICH A SHORT-TERM CASH ADVANCE IS MADE TO A CONSUMER IN EXCHANGE FOR (I) A CONSUMER'S PERSONAL CHECK OR SHARE DRAFT, IN THE AMOUNT OF AN ADVANCE PLUS A FEE, WHERE PRESENTMENT OR NEGOTIATION OF SUCH CHECK OR SHARE DRAFT IS DEFERRED BY AGREEMENT OF THE PARTIES UNTIL A DESIGNATED FUTURE DATE; OR (II) A CONSUMER'S AUTHORIZATION TO DEBIT THE CONSUMER'S TRANSACTION ACCOUNT, IN THE AMOUNT OF THE ADVANCE PLUS A FEE, WHERE SUCH ACCOUNT WILL BE DEBITED ON OR AFTER A DESIGNATED FUTURE DATE. S 2. The general obligations law is amended by adding a new section 5-532 to read as follows: S 5-532. PROHIBITION ON PAYDAY LOANS. 1. A CREDITOR MAY NOT MAKE A PAYDAY LOAN TO ANY PERSON IF THE CREDITOR KNOWS OR HAS REASONABLE CAUSE TO BELIEVE THAT: A. THE PERSONAL CHECK OR SHARE DRAFT THE CREDITOR RECEIVES FROM THE PERSON, IN EXCHANGE FOR THE LOAN, IS DRAWN ON AN INSURED DEPOSITORY INSTITUTION OR INSURED CREDIT UNION; OR EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00596-01-3 S. 4036 2
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