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NY A03288
Bill
Status
1/24/2011
Primary Sponsor
Keith Wright
Click for details
AI Summary
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Prohibits foreign banking corporations from making payday loans directly or indirectly, or providing loans to other lenders for purposes of financing, refinancing, or extending payday loans
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Defines payday loan as a short-term cash advance to a consumer in exchange for a personal check/share draft with deferred presentment, or authorization to debit a transaction account at a future date, both involving a fee
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Prohibits creditors from making payday loans if they know or have reasonable cause to believe the check or account is at an insured depository institution or insured credit union
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Defines insured credit union as any federally chartered or federally insured state-chartered credit union
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Takes effect 90 days after becoming law
Legislative Description
Prohibits foreign banking corporations from issuing payday loans; defines payday loans as any transaction in which a short-term cash advance is made to a consumer in exchange for (i) a consumer's personal check or share draft, in the amount of an advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or (ii) a consumer's authorization to debit the consumer's transaction account, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.
Last Action
referred to banks
1/4/2012