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NY A09603

Bill

Status

Introduced

3/21/2016

Primary Sponsor

Alicia Hyndman

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Origin

Assembly

2015-2016 General Assembly

AI Summary

  • Prohibits foreign banking corporations from making payday loans directly or indirectly, or from financing payday loans for other lenders
  • Defines payday loans as short-term cash advances secured by post-dated personal checks or share drafts, or by authorization to debit a transaction account at a future date, in exchange for the advance plus a fee
  • Prohibits creditors from making payday loans if they know or reasonably believe the check or account is held at an insured depository institution or insured credit union
  • Amends Banking Law by adding section 202-k and General Obligations Law by adding section 5-532

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

3/21/2016

Committee Referrals

Banks3/21/2016

Full Bill Text

No bill text available