Senate Bill S1627

2011-2012 Legislative Session

States the maximum rate of interest on credit cards shall not exceed eighteen percent annually

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Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2011-S1627 (ACTIVE) - Details

See Assembly Version of this Bill:
A5393
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add §14-g, Bank L
Versions Introduced in 2009-2010 Legislative Session:
S96, A4419

2011-S1627 (ACTIVE) - Summary

Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 18% annually; such rate may only exceed 18% if the prime rate exceeds 18% for sixty consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

2011-S1627 (ACTIVE) - Sponsor Memo

2011-S1627 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1627

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 10, 2011
                               ___________

Introduced  by  Sen. SAMPSON -- 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  the  maximum  rate  of
  interest on credit cards

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The banking law is amended by adding a new section 14-g  to
read as follows:
  S  14-G.    POWER  OF  THE  BANKING BOARD TO PRESCRIBE MAXIMUM RATE OF
INTEREST ON CREDIT CARDS.  1.  AS USED IN THIS SECTION, THE TERM "CREDIT
CARD" SHALL MEAN ANY CREDIT PLATE, CHARGE PLATE OR OTHER  IDENTIFICATION
CARD  OR DEVICE WHICH IS ISSUED TO ANY LEGAL ENTITY AS THE HOLDER THERE-
OF, AND MAY BE USED BY SUCH HOLDER TO OBTAIN A CASH ADVANCE OR A LOAN OR
CREDIT, OR TO PURCHASE OR RENT PROPERTY OR SERVICES ON THE CREDIT OF THE
ISSUER OR OF THE HOLDER.
  2.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER  LAW,  RULE  OR  REGU-
LATION  TO THE CONTRARY, THE BANKING BOARD SHALL SET THE MAXIMUM RATE OF
INTEREST FOR CREDIT CARDS, NOT  TO  EXCEED  EIGHTEEN  PERCENT  ANNUALLY.
SUCH  RATE  MAY  ONLY  EXCEED EIGHTEEN PERCENT IF THE PRIME RATE EXCEEDS
EIGHTEEN PERCENT FOR SIXTY CONSECUTIVE DAYS, BUT IN NO EVENT SHALL  SUCH
NEW RATE ESTABLISHED BY THE BANKING BOARD BE MORE THAN ONE AND ONE-QUAR-
TER PERCENT ABOVE THE PRIME RATE IN EFFECT AT THE TIME SUCH RATE IS SET.
  3.    NO  PERSON,  FIRM  OR CORPORATION SHALL, DIRECTLY OR INDIRECTLY,
CHARGE, TAKE OR RECEIVE ANY MONEY, GOODS OR SERVICES AS INTEREST ON  THE
EXTENSION  OF CREDIT AT A RATE EXCEEDING THE RATE PRESCRIBED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION.
  S 2. This act shall take effect on the thirtieth day  after  it  shall
have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05870-01-1

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