NY A03426

Adds Banking Law Section 46 to regulate refund anticipation loans (loans paid directly from income tax refunds) and defines borrower, facilitator, and related terms.

Requires facilitators to provide borrowers with a separate disclosure document at loan application containing: estimated tax preparation/filing fee, loan fee schedule, annual percentage rate, total cost, estimated disbursement timeline, borrower repayment responsibility, and alternative electronic filing information.

Limits refund anticipation loans to tax preparation locations only and mandates disclosure documents be available in English, Spanish, and any other language spoken by more than 5% of the local population.

Caps interest rates at 60% annually for the first 21 days and 20% annually thereafter for refund anticipation loans.

Establishes penalties of up to $500 per violation assessed by the Banking Superintendent, plus liability to borrowers of three times the loan fee amount plus attorney's fees for violations.