Bill > A04918

This bill provides comprehensive updates to New York's laws regarding interest rates and financing arrangements, expanding the definition of financing arrangements to include a wide range of financial products such as merchant cash advances, revenue-based financing, rent-to-own agreements, buy-now pay-later transactions, and income-sharing agreements. The bill establishes a standard 6% interest rate cap for most financing arrangements, with exceptions for larger loans, and broadens the definition of interest to include various fees, charges, and ancillary products. It introduces new provisions that allow for more flexible interest rate calculations and changes, particularly for demand loans over $5,000. The bill also strengthens consumer protections by empowering the Attorney General to create rules and guidance for interpreting financing arrangements and adds criminal penalties for usurious lending, defining criminal usury as charging interest rates exceeding 25% per annum. Additionally, the legislation modifies existing banking and personal property laws to accommodate these new definitions and regulations, aiming to provide more comprehensive oversight of various financial lending practices and protect consumers from predatory lending.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A4918