Bill > A09404

This bill aims to protect consumers from unsolicited mail-loan checks by prohibiting lending institutions from issuing such checks without a prior request or application. The legislation defines these "live loan checks" as potentially misleading documents that can trick people, especially vulnerable populations like seniors and individuals with disabilities, into taking out loans they did not intentionally request. Under the proposed law, lending institutions would be barred from sending mail-loan checks except in specific circumstances, such as when a consumer has explicitly requested a check, or for legitimate refunds, rebates, or government-issued checks. The bill empowers the Attorney General to enforce these provisions with potential penalties of up to $5,000 per violation. Additionally, recipients of unsolicited mail-loan checks would have a private right of action against the lending institution, allowing them to sue and recover damages and attorneys' fees. The bill also classifies the issuance of unsolicited mail-loan checks as a deceptive act or practice under the general business law, providing an additional layer of consumer protection. The legislation would take effect 180 days after becoming law, giving lending institutions time to adjust their practices to comply with the new requirements.

Business and Industry

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