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 amounts, at interest rate, over periods of six months, one year, and three years.
TITLE OF BILL: An act to amend the banking law, in relation to full disclosure of interest rate on unsolicited mail-loan checks
PURPOSE OR GENERAL IDEA OF BILL: To provide in legible type on the front page of the solicitation letter, interest rate or rates to be applied to such loan, and provide a table demonstrating the total cost of such loan at incremental dollar amount.
SUMMARY OF SPECIFIC PROVISIONS: This bill would amend the banking law.
JUSTIFICATION: This bill would mandate lending institutions that send unsolicited mail-loan checks to clearly state the interest rate and the total cost in a dollar amount. Unfortunately, we have seen too many cases where individuals claim solicitation.
PRIOR LEGISLATIVE HISTORY: 2011-12: S.1494 - Referred to Banks 2009-10: S.2285/A.3018 - Referred to Banks/Reported to Codes 2007-08: S.4527/A.6425 - Referred to Banks 2005-06: S.1173/A.6176 - Referred to Banks 2004-05: S.4175/A.7399 - Referred to Banks
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on the sixtieth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 2910 2013-2014 Regular Sessions IN SENATE January 25, 2013 ___________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: Section 1. Subdivision 2 of section 9-t of the banking law, as added by chapter 309 of the laws of 2002, is amended to read as follows: 2. Any lending institution which issues mail-loan checks shall: (a) include on the face of each check issued to a non-customer a writ- ten statement, in legible type reading "ONE FORM OF VALID PHOTOGRAPHIC ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash- ing or accepting a mail-loan check for deposit may require more than one form of identification; (b) make no reference on the outside of the envelope containing a mail-loan check that indicates that a check is enclosed within such envelope; (c) provide that all mail-loan checks shall be non-transferable;
[and](d) include an expiration date of not more than six months on the mail-loan check; AND (E) PROVIDE IN LEGIBLE TYPE ON THE FRONT PAGE OF THE SOLICITATION LETTER, THE INTEREST RATE OR RATES TO BE APPLIED TO SUCH LOAN, AND PROVIDE A TABLE DEMONSTRATING THE TOTAL COST OF SUCH LOAN AT INCREMENTAL DOLLAR AMOUNTS, AT THE OFFERED INTEREST RATE, OVER INCREMENTAL PERIODS OF TIME OF SIX MONTHS, ONE YEAR, AND THREE YEARS. S 2. This act shall take effect on the sixtieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06741-01-3