NY S07043

Authorizes licensed cashers of checks to offer short-term financial services loans of $300 to $2,000 (or 25% of borrower's gross monthly income, whichever is less) with loan terms between 90 and 180 days.

Requires loans to be repaid in substantially equal installments with at least 13 days between payments, with first payment due no sooner than borrower's next pay date that is at least 13 days after loan origination; no single installment may exceed 10% of borrower's gross monthly income.

Establishes a borrower database administered by the superintendent that licensees must query before issuing loans to verify applicants do not have existing outstanding short-term loans; limits borrowers to one outstanding loan at any time and allows a single refinance after three consecutive timely payments.

Prohibits secured loans, criminal prosecution for debt collection, assignment of borrower earnings, attorney fee collection, and requires written loan agreements with specific disclosures including credit counseling availability and notice that loans cannot be prosecuted as criminal matters or secured by property.

Sets initial application fee of $3,500 for cashers of checks engaging in short-term loans (with $500 retained for database operation) and $250 additional fee per location; authorizes superintendent to establish maximum interest rates and fees through public hearing process.