Bill Text: NY S04371 | 2019-2020 | General Assembly | Introduced

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 interest rate, over periods of six months, one year, and three years.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-11 - REFERRED TO BANKS [S04371 Detail]

Download: New_York-2019-S04371-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                     March 11, 2019
        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed 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.