Bill > S09570

This bill prohibits lending institutions from sending "mail-loan checks," which are checks that can be mistaken for refunds but actually create a loan with interest and fees, unless the recipient has specifically requested or applied for the loan. The bill clarifies that issuing a mail-loan check in response to such a request, or sending legitimate refunds or government-issued checks, is not a violation. Crucially, any debt, interest, fee, or obligation that arises from a mail-loan check issued improperly will be considered void and unenforceable, meaning lenders cannot collect on them, report them to credit bureaus, and any money already paid by the consumer must be refunded. Furthermore, lenders are forbidden from using any schemes or third parties to get around these rules. This legislation aims to protect consumers, particularly vulnerable populations, from unknowingly taking on unwanted debt.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S9570