Bill Text: NY A06475 | 2019-2020 | General Assembly | Introduced

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Bill Title: 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 the offered interest rate, over periods of six months, one year, and three years.

Spectrum: Partisan Bill (Democrat 20-0)

Status: (Introduced - Dead) 2020-01-08 - referred to banks [A06475 Detail]

Download: New_York-2019-A06475-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6475
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 7, 2019
                                       ___________
        Introduced by M. of A. WRIGHT -- read once and referred 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:
     1    Section  1.  Subdivision 2 of section 9-t of the banking law, as added
     2  by chapter 309 of the laws of 2002, is amended to read as follows:
     3    2. Any lending institution which issues mail-loan checks shall:
     4    (a) include on the face of each check issued to a non-customer a writ-
     5  ten statement, in legible type reading "ONE FORM OF  VALID  PHOTOGRAPHIC
     6  ID  NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
     7  ing or accepting a mail-loan check for deposit may require more than one
     8  form of identification;
     9    (b) make no reference on the outside  of  the  envelope  containing  a
    10  mail-loan  check  that  indicates  that  a check is enclosed within such
    11  envelope;
    12    (c) provide that all mail-loan checks shall be non-transferable; [and]
    13    (d) include an expiration date of not more  than  six  months  on  the
    14  mail-loan check; and
    15    (e)  provide  in  legible  type  on the front page of the solicitation
    16  letter, the interest rate or rates to  be  applied  to  such  loan,  and
    17  provide a table demonstrating the total cost of such loan at incremental
    18  dollar  amounts,  at the offered interest rate, over incremental periods
    19  of time of six months, one year, and three years.
    20    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    21  have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09683-01-9