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Assembly Bill A7020

2025-2026 Legislative Session

Relates to fixing a maximum interest rate for credit cards issued or used in this state

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Current Bill Status - In Assembly Committee

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2025-A7020 (ACTIVE) - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Amd §14-a, Bank L; add §515-a, Gen Bus L

2025-A7020 (ACTIVE) - Summary

Fixes the maximum interest rate for credit cards issued or used in this state at 10%.

2025-A7020 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7020
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 18, 2025
                                ___________
 
 Introduced  by  M.  of  A. SMITH, DURSO, TAGUE, MIKULIN -- read once and
   referred to the Committee on Banks
 
 AN ACT to amend the  banking  law  and  the  general  business  law,  in
   relation  to  capping  the  interest rate on credit cards for personal
   use; and providing for the repeal of such provisions upon the  expira-
   tion thereof

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 14-a of the banking law, as  added
 by chapter 883 of the laws of 1980, is amended to read as follows:
   1.  The  maximum rate of interest provided for in section 5-501 of the
 general obligations law shall be sixteen per centum per annum; PROVIDED,
 HOWEVER, THAT A CREDIT CARD FOR PERSONAL, FAMILY, OR HOUSEHOLD  PURPOSES
 ISSUED BY A NEW YORK STATE BANKING INSTITUTION TO AN INDIVIDUAL RESIDING
 IN  THIS  STATE  SHALL HAVE A MAXIMUM RATE OF INTEREST OF TEN PER CENTUM
 PER ANNUM, AND ANY RATE IN EXCESS OF  SUCH  MAXIMUM  RATE  ON  ANY  CARD
 ISSUED  EITHER  BEFORE OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE
 LAWS OF TWO THOUSAND TWENTY-FIVE THAT AMENDED THIS SUBDIVISION SHALL  BE
 VOID  AS AGAINST PUBLIC POLICY. WHENEVER THE ATTORNEY GENERAL HAS REASON
 TO BELIEVE THAT THERE HAS BEEN A VIOLATION OF THIS PROVISION, THE ATTOR-
 NEY GENERAL MAY APPLY TO THE SUPREME COURT IN  ANY  COUNTY  WHEREIN  ANY
 SUCH VIOLATION OCCURRED FOR THE PURPOSE OF RESTRAINING AND ENJOINING THE
 CONTINUANCE OF SUCH VIOLATION.
   § 2. The general business law is amended by adding a new section 515-a
 to read as follows:
   § 515-A. USE OF CERTAIN CREDIT CARDS PROHIBITED. NO PERSON SHALL USE A
 CREDIT CARD FOR PERSONAL, FAMILY, OR HOUSEHOLD PURCHASES IF THE INTEREST
 RATE  FOR SUCH CARD EXCEEDS THE MAXIMUM RATE FOR CREDIT CARDS ISSUED FOR
 PERSONAL USE AS SET FORTH IN SUBDIVISION ONE OF  SECTION  FOURTEEN-A  OF
 THE BANKING LAW.
   §  3.  This  act shall take effect immediately and shall expire and be
 deemed repealed 5 years after such date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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