Bill > A09404

This bill prohibits lending institutions from sending "mail-loan checks," which are essentially pre-approved loan checks sent through the mail, unless the recipient has specifically requested or applied for them. The bill aims to protect consumers, particularly vulnerable populations like seniors and those facing financial hardship, from accidentally taking out loans they didn't intend to, often with high interest and fees, by making these unsolicited checks appear like refunds or legitimate payments. If a lending institution violates this rule by issuing an unsolicited mail-loan check, any resulting debt, interest, fees, or other obligations will be considered void and unenforceable, meaning lenders cannot collect them or report them to credit bureaus, and any money paid by the consumer must be refunded. Furthermore, the bill prevents lenders from trying to get around these rules through various schemes or by using third parties.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A9404