Assembly Bill A5393

2011-2012 Legislative Session

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

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Archive: Last Bill Status - In Assembly 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-A5393 (ACTIVE) - Details

See Senate Version of this Bill:
S1627
Current Committee:
Assembly Banks
Law Section:
Banking Law
Laws Affected:
Add §14-g, Bank L
Versions Introduced in 2009-2010 Legislative Session:
A4419, S96

2011-A5393 (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-A5393 (ACTIVE) - Bill Text download pdf 

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

                                  5393

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 18, 2011
                               ___________

Introduced  by  M.  of  A. ROBINSON, REILLY, N. RIVERA, GIBSON -- Multi-
  Sponsored by -- M. of A.  BOYLAND, PEOPLES-STOKES, TOWNS -- read  once
  and referred 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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