Bill Text: NY A05915 | 2021-2022 | General Assembly | Amended

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Bill Title: Requires banks to provide written notification that accepting an alternative loan payment schedule may have a negative impact on credit scores; makes related provisions.

Spectrum: Strong Partisan Bill (Democrat 12-1)

Status: (Introduced - Dead) 2021-06-01 - substituted by s1566a [A05915 Detail]

Download: New_York-2021-A05915-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5915--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      March 2, 2021
                                       ___________

        Introduced  by  M.  of  A.  ZINERMAN, PICHARDO, ABINANTI, LAVINE, DURSO,
          SILLITTI, TAYLOR, NOLAN, DICKENS, JACKSON, GOTTFRIED, GALEF, FERNANDEZ
          -- read once and referred to  the  Committee  on  Banks  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN  ACT  to  amend  the  banking  law, in relation to requiring banks to
          provide  written  notification  that  accepting  an  alternative  loan
          payment schedule may have a negative impact on credit scores

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The banking law is amended by adding a new section 129-a to
     2  read as follows:
     3    § 129-a. Requirement  of  written  notification;  alternative  payment
     4  schedules.  In  the  event that any bank or trust company shall permit a
     5  customer to establish an alternative payment schedule  for  an  existing
     6  loan,  the bank or trust company shall provide written notification that
     7  accepting such alternative payment schedule may have a  negative  impact
     8  on  such  customer's  credit score or rating. Such notification shall be
     9  provided at the time a loan application is made, at the time a  loan  is
    10  granted  and at the time a customer requests that an alternative payment
    11  schedule be established for a loan, but prior to the  actual  establish-
    12  ment of an alternative payment schedule.
    13    §  2.  This  act shall take effect on the ninetieth day after it shall
    14  have become a law.



         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04288-04-1