NY A07345

Adds new section 46 to the Banking Law establishing regulations for refund anticipation loans, defining key terms including "borrower," "facilitator," "refund anticipation loan," and "refund anticipation loan fee."

Requires facilitators to provide borrowers with a separate disclosure document at time of application that includes estimated tax preparation fees, loan fee schedule, annual percentage rate, total estimated cost, expected disbursement timeline, repayment liability if refund is not paid, and information about electronic filing alternatives.

Limits refund anticipation loan interest rates to 60% per annum for the first 21 days and 20% per annum thereafter, and restricts loan origination to locations where tax preparation is the principal business.

Prohibits facilitators from requiring clients to take out loans to complete tax returns, misrepresenting loan terms, processing applications slowly, or engaging in fraudulent practices related to refund anticipation loans.

Establishes civil penalties of up to $500 per violation assessable by the superintendent and allows borrowers to sue for three times the loan fee plus attorney's fees; takes effect November 1 following enactment.