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NY A09404
Bill
Status
12/19/2025
Primary Sponsor
Angelo Santabarbara
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AI Summary
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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
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Authorizes the Attorney General to enforce the prohibition and impose penalties of up to $5,000 per violation
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Creates a private right of action allowing recipients of unsolicited mail-loan checks to sue the lending institution for damages and attorneys' fees
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Classifies violations as a deceptive act or practice under General Business Law section 349
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Exempts replacement checks, legitimate refunds or rebates, and government-issued checks from the prohibition
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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