STATE OF NEW YORK ________________________________________________________________________ 4618 2019-2020 Regular Sessions IN ASSEMBLY February 4, 2019 ___________ Introduced by M. of A. WRIGHT, JEAN-PIERRE, ORTIZ, AUBRY, DICKENS, WALK- ER, GOTTFRIED, ABINANTI, CRESPO, RIVERA, MOSLEY -- Multi-Sponsored by -- M. of A. COOK, DE LA ROSA, GALEF, HYNDMAN, NOLAN, SIMON -- read once and referred 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: 1 Section 1. The banking law is amended by adding a new section 129-a to 2 read as follows: 3 § 129-a. Requirement of disclosure; alternative payment schedules. In 4 the event that any bank or trust company shall permit a customer to 5 establish an alternative payment schedule for an existing loan, the bank 6 or trust company shall provide written disclosure of any negative conse- 7 quences such alternative payment schedule may have on such customer's 8 credit score or rating. Such disclosure shall be provided at the time a 9 loan application is made, at the time a loan is granted and at the time 10 a customer requests that an alternative payment schedule be established 11 for a loan, but prior to the actual establishment of an alternative 12 payment schedule. 13 § 2. This act shall take effect on the ninetieth day after it shall 14 have become a law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00597-01-9