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Senate Bill S1566A

Signed By Governor

2021-2022 Legislative Session

Requires banks to provide written notification that accepting an alternative loan payment schedule may have a negative impact on credit scores

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Archive: Last Bill Status - Signed by Governor

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co-Sponsors

2021-S1566 - Details

See Assembly Version of this Bill:
A5915
Law Section:
Banking Law
Laws Affected:
Add §129-a, Bank L
Versions Introduced in Other Legislative Sessions:
2013-2014: S7425
2015-2016: S3277
2017-2018: S3217, A7228
2019-2020: S2106, A4618

2021-S1566 - Summary

Requires banks to provide written notification that accepting an alternative loan payment schedule may have a negative impact on credit scores; makes related provisions.

2021-S1566 - Sponsor Memo

2021-S1566 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1566
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2021
                                ___________
 
 Introduced  by  Sens.  SANDERS, LIU, SEPULVEDA -- 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  requiring  banks  to
   disclose  any negative consequences an alternative loan payment sched-
   ule may have on credit scores

   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 129-a to
 read as follows:
   §  129-A. REQUIREMENT OF DISCLOSURE; ALTERNATIVE PAYMENT SCHEDULES. IN
 THE EVENT THAT ANY BANK OR TRUST COMPANY  SHALL  PERMIT  A  CUSTOMER  TO
 ESTABLISH AN ALTERNATIVE PAYMENT SCHEDULE FOR AN EXISTING LOAN, THE BANK
 OR TRUST COMPANY SHALL PROVIDE WRITTEN DISCLOSURE OF ANY NEGATIVE CONSE-
 QUENCES  SUCH  ALTERNATIVE  PAYMENT SCHEDULE MAY HAVE ON SUCH CUSTOMER'S
 CREDIT SCORE OR RATING. SUCH DISCLOSURE SHALL BE PROVIDED AT THE TIME  A
 LOAN  APPLICATION IS MADE, AT THE TIME A LOAN IS GRANTED AND AT THE TIME
 A CUSTOMER REQUESTS THAT AN ALTERNATIVE PAYMENT SCHEDULE BE  ESTABLISHED
 FOR  A  LOAN,  BUT  PRIOR  TO THE ACTUAL ESTABLISHMENT OF AN ALTERNATIVE
 PAYMENT SCHEDULE.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04288-01-1

co-Sponsors

2021-S1566A (ACTIVE) - Details

See Assembly Version of this Bill:
A5915
Law Section:
Banking Law
Laws Affected:
Add §129-a, Bank L
Versions Introduced in Other Legislative Sessions:
2013-2014: S7425
2015-2016: S3277
2017-2018: S3217, A7228
2019-2020: S2106, A4618

2021-S1566A (ACTIVE) - Summary

Requires banks to provide written notification that accepting an alternative loan payment schedule may have a negative impact on credit scores; makes related provisions.

2021-S1566A (ACTIVE) - Sponsor Memo

2021-S1566A (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1566--A
     Cal. No. 189
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2021
                                ___________
 
 Introduced  by  Sens.  SANDERS, LIU, SEPULVEDA -- read twice and ordered
   printed, and when printed to be committed to the Committee on Banks --
   reported favorably from said committee, ordered to  first  and  second
   report,  ordered to a third reading, passed by Senate and delivered to
   the Assembly, recalled, vote reconsidered, restored to third  reading,
   amended  and  ordered  reprinted,  retaining its place in the order of
   third reading
 
 AN ACT to amend the banking law,  in  relation  to  requiring  banks  to
   provide  written  notification  that  accepting  an  alternative  loan
   payment schedule may have a negative impact on credit scores
 
   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 129-a to
 read as follows:
   §  129-A.  REQUIREMENT  OF  WRITTEN  NOTIFICATION; ALTERNATIVE PAYMENT
 SCHEDULES. IN THE EVENT THAT ANY BANK OR TRUST COMPANY  SHALL  PERMIT  A
 CUSTOMER  TO  ESTABLISH  AN ALTERNATIVE PAYMENT SCHEDULE FOR AN EXISTING
 LOAN, THE BANK OR TRUST COMPANY SHALL PROVIDE WRITTEN NOTIFICATION  THAT
 ACCEPTING  SUCH  ALTERNATIVE PAYMENT SCHEDULE MAY HAVE A NEGATIVE IMPACT
 ON SUCH CUSTOMER'S CREDIT SCORE OR RATING. SUCH  NOTIFICATION  SHALL  BE
 PROVIDED  AT  THE TIME A LOAN APPLICATION IS MADE, AT THE TIME A LOAN IS
 GRANTED AND AT THE TIME A CUSTOMER REQUESTS THAT AN ALTERNATIVE  PAYMENT
 SCHEDULE  BE  ESTABLISHED FOR A LOAN, BUT PRIOR TO THE ACTUAL ESTABLISH-
 MENT OF AN ALTERNATIVE PAYMENT SCHEDULE.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04288-05-1

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