Requires lending institutions that send unsolicited mail-loan checks to clearly state in solicitation letter the interest rate to be applied to such loan and to demonstrate the total cost of loan in a dollar amounts, at interest rate, over periods of six months, one year, and three years.
STATE OF NEW YORK
________________________________________________________________________
2910
2013-2014 Regular Sessions
IN SENATE
January 25, 2013
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to full disclosure of
interest rate on unsolicited mail-loan checks
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 9-t of the banking law, as added
2 by chapter 309 of the laws of 2002, is amended to read as follows:
3 2. Any lending institution which issues mail-loan checks shall:
4 (a) include on the face of each check issued to a non-customer a writ-
5 ten statement, in legible type reading "ONE FORM OF VALID PHOTOGRAPHIC
6 ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
7 ing or accepting a mail-loan check for deposit may require more than one
8 form of identification;
9 (b) make no reference on the outside of the envelope containing a
10 mail-loan check that indicates that a check is enclosed within such
11 envelope;
12 (c) provide that all mail-loan checks shall be non-transferable; [and]
13 (d) include an expiration date of not more than six months on the
14 mail-loan check; and
15 (e) provide in legible type on the front page of the solicitation
16 letter, the interest rate or rates to be applied to such loan, and
17 provide a table demonstrating the total cost of such loan at incremental
18 dollar amounts, at the offered interest rate, over incremental periods
19 of time of six months, one year, and three years.
20 § 2. This act shall take effect on the sixtieth day after it shall
21 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06741-01-3
