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Assembly Bill A9404A

2025-2026 Legislative Session

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

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Current Bill Status - In Senate Committee Banks Committee

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Bill Amendments

2025-A9404 - Details

See Senate Version of this Bill:
S9570
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd §9-t, Bank L

2025-A9404 - Summary

Relates to the prohibition of lending institutions issuing mail-loan checks except in response to an affirmative request or application therefor; provides that any debt, interest, fee or other obligation arising from a mail-loan check issued in violation of this section shall be null and void and unenforceable.

2025-A9404 - 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

co-Sponsors

2025-A9404A (ACTIVE) - Details

See Senate Version of this Bill:
S9570
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd §9-t, Bank L

2025-A9404A (ACTIVE) - Summary

Relates to the prohibition of lending institutions issuing mail-loan checks except in response to an affirmative request or application therefor; provides that any debt, interest, fee or other obligation arising from a mail-loan check issued in violation of this section shall be null and void and unenforceable.

2025-A9404A (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9404--A
 
                        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 -- recommitted to the Committee on Banks in accord-
   ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 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  into
 unwanted loans.
   §  2.  Subdivision  3 of section 9-t of the banking law, as amended by
 chapter 184 of the laws of 2022, is amended to read as follows:
   3. (A) No lending institution shall issue a mail-loan check, except in
 response to [a] AN AFFIRMATIVE request or application  therefor  BY  THE
 PERSON TO  WHOM IT IS ISSUED.
   (B)  ISSUANCE  OF  A  MAIL-LOAN  CHECK  IN RESPONSE TO SUCH REQUEST OR
 APPLICATION, OR ISSUANCE OF ANY REPLACEMENT  CHECK,  LEGITIMATE  REFUND,
 REBATE,  OR  GOVERNMENT-ISSUED CHECK SHALL NOT CONSTITUTE A VIOLATION OF
 PARAGRAPH (A) OF THIS SUBDIVISION.
   § 3. Section 9-t of the banking law  is  amended  by  adding  two  new
 subdivisions 6 and 7 to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14226-02-6

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