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Senate Bill S5283

2023-2024 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

download bill text pdf

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Archive: Last Bill Status - In Senate Committee Banks Committee

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2023-S5283 (ACTIVE) - Details

Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd §9-t, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: S2285
2011-2012: S1494
2013-2014: S2910
2015-2016: S1723
2017-2018: S3076
2019-2020: S4371
2021-2022: S4426
2025-2026: S4129

2023-S5283 (ACTIVE) - Summary

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 amount, at interest rate, over periods of six months, one year, and three years.

2023-S5283 (ACTIVE) - Sponsor Memo

2023-S5283 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5283
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2023
                                ___________
 
 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 amended
 by chapter 184 of the laws of 2022, 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 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; 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.
   §  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.
                                                            LBD07220-01-3

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