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NY A06189
Bill
Status
4/3/2023
Primary Sponsor
Alicia Hyndman
Click for details
AI Summary
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Foreign banking corporations are prohibited from making payday loans directly or indirectly, or financing payday loans for other lenders.
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Creditors cannot make payday loans if they know or reasonably believe the check or account used is from an insured depository institution or insured credit union.
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Payday loan is defined as a short-term cash advance in exchange for either a personal check with deferred presentment plus a fee, or authorization to debit a transaction account plus a fee on a designated future date.
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Insured credit unions include those chartered by the federal government or federally insured credit unions chartered by a state.
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The act takes effect 90 days after becoming law.
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: 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 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
1/3/2024