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NY A09404

Bill

Status

Introduced

12/19/2025

Primary Sponsor

Angelo Santabarbara

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Origin

Assembly

2025-2026 General Assembly

AI Summary

  • Prohibits lending institutions from issuing unsolicited "mail-loan checks" — checks that, when deposited, create a loan with interest and fees — except in response to a specific request or application from the recipient

  • Authorizes the Attorney General to enforce the prohibition and impose penalties of up to $5,000 per violation

  • Creates a private right of action allowing recipients of unsolicited mail-loan checks to sue the lending institution for damages and attorneys' fees

  • Classifies violations as a deceptive act or practice under General Business Law section 349

  • Exempts replacement checks, legitimate refunds or rebates, and government-issued checks from the prohibition

  • Takes effect 180 days after becoming law

Legislative Description

Relates to the prohibition of lending institutions issuing mail-loan checks except in response to a request or application therefor; provides that the attorney general shall have the authority to enforce such provision and to impose penalties for violations; provides a private right of action for a recipient of an unsolicited mail-loan check; provides that the issuance of an unsolicited mail-loan check shall constitute a deceptive act or practice.

Last Action

referred to banks

1/7/2026

Committee Referrals

Banks12/19/2025

Full Bill Text

No bill text available