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Assembly Bill A9404

2025-2026 Legislative Session

Relates to the prohibition of lending institutions issuing unsolicited mail-loan checks

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Current Bill Status - In Assembly Committee

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2025-A9404 (ACTIVE) - Details

Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Amd §9-t, Bank L

2025-A9404 (ACTIVE) - Summary

Relates to the prohibition of lending institutions issuing mail-loan checks except in response to a request or application therefor; provides that the attorney general shall have the authority to enforce such provision and to impose penalties for violations; provides a private right of action for a recipient of an unsolicited mail-loan check; provides that the issuance of an unsolicited mail-loan check shall constitute a deceptive act or practice.

2025-A9404 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9404
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 19, 2025
                                ___________
 
 Introduced  by  M.  of  A. SANTABARBARA -- read once and referred to the
   Committee on Banks
 
 AN ACT to amend the banking law, in relation to the prohibition of lend-
   ing institutions issuing unsolicited mail-loan checks
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Legislative findings. The legislature finds that unsolicit-
 ed  "live  loan  checks"  can  mislead people into taking out loans they
 never asked for. These  checks  often  look  like  refunds  or  official
 payments,  but once deposited, they create a loan with high interest and
 fees.
   Many New Yorkers -- especially seniors, people with disabilities,  and
 families  under  financial stress -- are at risk of being harmed by this
 practice.
   The purpose of this act is to stop lenders from sending these unsolic-
 ited checks and to protect consumers from accidentally entering unwanted
 loans.
   § 2. Subdivisions 3 and 5 of  section  9-t  of  the  banking  law,  as
 amended  by  chapter  184  of  the  laws of 2022, are amended to read as
 follows:
   3. (A) No lending institution shall issue a mail-loan check, except in
 response to a request or application therefor.
   (B) THE ISSUANCE OF A MAIL-LOAN CHECK REQUESTED BY THE PERSON TO  WHOM
 IT  IS ISSUED, OR OF ANY REPLACEMENT CHECK, LEGITIMATE REFUND OR REBATE,
 OR GOVERNMENT-ISSUED CHECK SHALL NOT CONSTITUTE A VIOLATION OF PARAGRAPH
 (A) OF THIS SUBDIVISION.
   (C) THE ATTORNEY GENERAL SHALL  HAVE  THE  AUTHORITY  TO  ENFORCE  THE
 PROVISIONS  OF  PARAGRAPH (A) OF THIS SUBDIVISION, AND MAY IMPOSE PENAL-
 TIES OF NOT MORE THAN FIVE THOUSAND DOLLARS PER VIOLATION OF SUCH  PARA-
 GRAPH.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14226-01-5
 A. 9404                             2

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