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NY A10321
Bill
Status
5/20/2016
Primary Sponsor
Joseph Morelle
Click for details
AI Summary
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Creates a 5-year pilot program allowing lenders to make unsecured installment loans of $300-$5,000 at up to 30% annual simple interest with origination fees capped at 5% of principal or $75, whichever is less.
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Requires program licensees to underwrite loans based on ability to repay, verify borrower income and debt obligations, report payment performance to credit bureaus, and provide credit education to borrowers before disbursement.
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Permits lenders to charge insufficient funds fees (up to $25) and delinquency fees (up to $14 per late payment, with limits on frequency and total fees as percentage of original loan amount).
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Allows program licensees to use referral partners for specified activities like application processing and loan disbursement, with compensation capped at $60 per loan plus $2 per payment received, and requires notification to superintendent within 15 days of entering referral partner agreements.
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Mandates annual reporting to superintendent on aggregated data regarding loan volume, borrower demographics, credit score improvements, delinquencies, and program violations; program expires after 5 years unless renewed.
Legislative Description
Enacts the "credit creation pilot program act of New York"; directs the superintendent; defines terms; provides that a program licensee may not offer or make a program loan or impose any charges or fees without prior approval from the superintendent of financial services to participate in the program; provides for disclosures, statements and receipts, referral partners, permitted services and prohibited activities.
Last Action
referred to banks
5/20/2016