This bill has been amended

Bill S4659A-2013

Requires a study and report on banking products and services offered in low income communities

Requires a study and report on banking products and services offered in low income communities.

Details

Actions

  • Jan 8, 2014: REFERRED TO BANKS
  • May 30, 2013: PRINT NUMBER 4659A
  • May 30, 2013: AMEND AND RECOMMIT TO BANKS
  • Apr 17, 2013: REFERRED TO BANKS

Memo

BILL NUMBER:S4659A

TITLE OF BILL: An act in relation to requiring a study and report on banking products and services offered in low income communities and the impact of traditional banks, credit unions and check casher services serving low income communities; and providing for the repeal of such provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF THE BILL:

A long history of discriminatory banking policies and practices has left low income communities with limited financial service options, costly banking fees, and a proliferation of financial services with exorbitant fees and interest rates. A review of the current state of banking and financial services in low income communities is needed in order to access overall impact on the residents of these communities.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: 1. The superintendent of financial services shall study and issue a comprehensive report on banking products and services offered in low income communities and the impact of traditional banks, credit unions and check casher services serving low income communities.

2. Such study and report carried out pursuant to this section shall address the following issues:

(a) which products and services are offered in low income communities versus which products and services are offered in higher income communities;

(b} review of whether different fees are charged by financial service providers for products and services in low income communities and in higher income communities, including but not limited to, use of automated teller machine (ATM) fees, checking account fees, and overdraw fees;

(c) review of whether different interest rates are instituted by financial service providers for products and services in low income communities and higher income communities;

(d) The impact of payday loans within low income communities, the prevalence of such loans and the interest rates charged for such loans; and

(e) The current impact and outcome of the State's 1977 Community Reinvestment Act and federal CRA.

3. Such report shall be made to the governor, the speaker of the assembly and the temporary president of the senate no later than January 1, 2015

4. The superintendent of financial services may request, and is authorized to receive, any information from any state agencies that is relevant and material to the completion of this study and report. Such information shall be subject to the same requirements for

confidentiality and limitations of use, if any, as are applicable to such state agencies use of such information.

Section 2: This act shall take effect immediately and shall expire and be deemed repealed January 1, 2015

JUSTIFICATION:

A long history of discriminatory banking policies and practices has left low income communities with limited financial service options, costly banking fees, and a proliferation of financial services with exorbitant fees and interest rates. A review of the current state of banking and financial services in low income communities is needed in order to access overall impact on the residents of these communities, The study will also help shape future public policy that will improve banking and financial services available in low income communities.

PRIOR LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

None, the New York State Department of Financial Services has all the data from banking and financial institutions to make the comparisons required in this legislation. DFS staff that has oversight responsibilities over banking rules and regulations is able to compile this data.

EFFECTIVE DATE:

This act shall take effect immediately and shall expire and be deemed repealed January 1, 2015


Text

STATE OF NEW YORK ________________________________________________________________________ 4659--A 2013-2014 Regular Sessions IN SENATE April 17, 2013 ___________
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT in relation to requiring a study and report on banking products and services offered in low income communities and the impact of traditional banks, credit unions and check casher services serving low income communities; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. 1. The superintendent of financial services shall study and issue a comprehensive report on banking products and services offered in low income communities and the impact of traditional banks, credit unions and check casher services serving low income communities. 2. Such study and report carried out pursuant to this section shall address the following issues: (a) which products and services are offered in low income communities versus which products and services are offered in higher income communi- ties; (b) review of whether different fees are charged by financial service providers for products and services in low income communities and in higher income communities, including but not limited to, use of auto- mated teller machine (ATM) fees, checking account fees, and overdraft fees; (c) review of whether different interest rates are instituted by financial service providers for products and services in low income communities and in higher income communities, including but not limited to, savings account interest rates and interest rates on loans; (d) the impact of payday loans within low income communities, the prevalence of such loans and the interest rates charged for such loans,
to the extent such information is available to the department of finan- cial services; and (e) an analysis of the impact and current relevance of the state and federal community reinvestment act as it affects low income communities and banking and financial services. 3. Such report shall be made to the governor, the speaker of the assembly and the temporary president of the senate no later than January 1, 2015. 4. The superintendent of financial services may request, and is authorized to receive, any information from any state agencies that is relevant and material to the completion of this study and report. Such information shall be subject to the same requirements for confidentiali- ty and limitations of use, if any, as are applicable to such state agen- cy's use of such information. S 2. This act shall take effect immediately and shall expire and be deemed repealed January 1, 2015.

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