NY A03876

Adds new section 46 to Banking Law establishing regulatory framework for refund anticipation loans (RALs) made by non-bank facilitators at tax preparation locations.

Requires facilitators to provide borrowers with separate disclosure documents at time of loan application including: estimated tax preparation fees, RAL fee schedule, annual percentage rate, total cost, disbursement timeline, repayment responsibility if refund is not received, and availability of electronic filing alternatives.

Caps interest rates at 60% per annum for the first 21 days of the loan and 20% per annum thereafter; restricts RAL origination to locations where tax preparation is the principal business.

Prohibits facilitators from requiring clients to obtain loans to complete tax returns, misrepresenting loan terms, failing to process applications promptly, or engaging in fraudulent practices.

Establishes civil penalties of up to $500 per violation assessed by the Superintendent, plus liability to borrowers for three times the RAL fee and reasonable attorney's fees in civil actions.