NY A05297

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

Establishes maximum fees and interest rates to be set by the superintendent through public hearings, with annual amendment allowed only upon petition from 25% of licensees, and prohibits advance interest, compounding, and late fees beyond those authorized.

Creates a borrower database accessible by licensees to verify outstanding loans, funded by $500 from initial application fees and $250 from additional location fees for check cashers engaging in these transactions.

Prohibits secured loans, criminal prosecution threats, assignment of earnings, multiple simultaneous loans per borrower, attorney fee provisions, and requires written agreements with specific disclosures including credit counseling availability and notice that no criminal prosecution or security interests are permitted.

Establishes a Financial Education Fund supported by check cashers to develop financial education programs, with at least half offered through public community colleges and state institutions, and requires annual reporting to the Governor.