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NY A09603
Bill
Status
Introduced
3/21/2016
Primary Sponsor
Alicia Hyndman
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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