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NY A08161
Bill
Status
5/6/2009
Primary Sponsor
Hakeem Jeffries
Click for details
AI Summary
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Adds Banking Law Section 46 to regulate refund anticipation loans made by non-bank facilitators, defining key terms including "borrower," "facilitator," and "refund anticipation loan."
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Requires facilitators to provide borrowers a separate disclosure document at loan application containing estimated tax preparation fees, loan fee schedule, annual percentage rate, total estimated cost, expected payment timeline, repayment responsibility notice, and information about electronic filing alternatives.
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Limits interest rates to 60 percent per annum for the first 21 days and 20 percent per annum thereafter, and restricts loan origination to tax preparation locations only.
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Prohibits facilitators from requiring loan arrangements to complete tax returns, misrepresenting loan terms, failing to process applications promptly, or engaging in fraudulent practices.
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Establishes civil penalties up to $500 per violation assessed by the Banking Superintendent and allows borrowers to recover three times the loan fee plus attorney's fees through civil action for violations.
Legislative Description
Regulates the provision of refund anticipation loans by person and entities other than banking institutions; requires that at the time a borrower applies for a refund anticipation loan, a facilitator shall disclose to such borrower certain information relating to fees and interest rates; defines terms.
Last Action
enacting clause stricken
4/13/2010