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NY A10331
Bill
Status
3/18/2010
Primary Sponsor
Matthew Titone
Click for details
AI Summary
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Amends Banking Law to regulate refund anticipation loans (RALs) made by non-bank facilitators, defining key terms including "borrower," "facilitator," and "refund anticipation loan fee"
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Requires facilitators to provide borrowers with separate disclosure documents at loan application containing estimated tax prep fees, loan fee schedule, annual percentage rate, total cost estimate, expected disbursement timeline, repayment liability, and information about electronic filing alternatives
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Limits RAL interest rates to 60% per annum for the first 21 days and 20% per annum thereafter, and restricts RAL offerings to tax preparation locations only
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Prohibits facilitators from requiring loan arrangements to complete tax returns, misrepresenting loan terms, delaying loan applications, or engaging in fraudulent practices
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Establishes civil penalties of up to $500 per violation assessed by the Superintendent, plus triple damages and attorney's fees in borrower lawsuits, with regulations to be prescribed by the Superintendent
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
referred to banks
3/18/2010