Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 04, 2012 |
referred to banks |
Jan 10, 2011 |
referred to banks |
Senate Bill S1627
2011-2012 Legislative Session
Sponsored By
(D, WF) Senate District
Archive: Last Bill Status - In Senate Committee Banks Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2011-S1627 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A5393
- Current Committee:
- Senate Banks
- Law Section:
- Banking Law
- Laws Affected:
- Add ยง14-g, Bank L
- Versions Introduced in 2009-2010 Legislative Session:
-
S96, A4419
2011-S1627 (ACTIVE) - Summary
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 18% annually; such rate may only exceed 18% if the prime rate exceeds 18% for sixty consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.
2011-S1627 (ACTIVE) - Sponsor Memo
BILL NUMBER:S1627 TITLE OF BILL: An act to amend the banking law, in relation to the maximum rate of interest on credit cards PURPOSE OR GENERAL IDEA OF BILL: To set a cap on current credit card interest rates in the State of New York more in line with interest rates for other credit rates in other areas. SUMMARY OF SPECIFIC PROVISIONS: Creates a new Section 14-g to the Banking law and defines: 1. The term "credit card". 2. Establishes a maximum rate of interest of fifteen percent (18%) and provides for raising the rate according to a time and prime rate formula. 3. Makes maximum interest rate for credit cards applicable to all persons and corporations in New York. EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: This bill amends, by implication Section 14(A) of the Banking law, by imposing a cap specifically on interest rates of credit cards.
2011-S1627 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 1627 2011-2012 Regular Sessions I N S E N A T E January 10, 2011 ___________ Introduced by Sen. SAMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to the maximum rate of interest on credit cards THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The banking law is amended by adding a new section 14-g to read as follows: S 14-G. POWER OF THE BANKING BOARD TO PRESCRIBE MAXIMUM RATE OF INTEREST ON CREDIT CARDS. 1. AS USED IN THIS SECTION, THE TERM "CREDIT CARD" SHALL MEAN ANY CREDIT PLATE, CHARGE PLATE OR OTHER IDENTIFICATION CARD OR DEVICE WHICH IS ISSUED TO ANY LEGAL ENTITY AS THE HOLDER THERE- OF, AND MAY BE USED BY SUCH HOLDER TO OBTAIN A CASH ADVANCE OR A LOAN OR CREDIT, OR TO PURCHASE OR RENT PROPERTY OR SERVICES ON THE CREDIT OF THE ISSUER OR OF THE HOLDER. 2. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, RULE OR REGU- LATION TO THE CONTRARY, THE BANKING BOARD SHALL SET THE MAXIMUM RATE OF INTEREST FOR CREDIT CARDS, NOT TO EXCEED EIGHTEEN PERCENT ANNUALLY. SUCH RATE MAY ONLY EXCEED EIGHTEEN PERCENT IF THE PRIME RATE EXCEEDS EIGHTEEN PERCENT FOR SIXTY CONSECUTIVE DAYS, BUT IN NO EVENT SHALL SUCH NEW RATE ESTABLISHED BY THE BANKING BOARD BE MORE THAN ONE AND ONE-QUAR- TER PERCENT ABOVE THE PRIME RATE IN EFFECT AT THE TIME SUCH RATE IS SET. 3. NO PERSON, FIRM OR CORPORATION SHALL, DIRECTLY OR INDIRECTLY, CHARGE, TAKE OR RECEIVE ANY MONEY, GOODS OR SERVICES AS INTEREST ON THE EXTENSION OF CREDIT AT A RATE EXCEEDING THE RATE PRESCRIBED PURSUANT TO SUBDIVISION TWO OF THIS SECTION. S 2. This act shall take effect on the thirtieth day after it shall have become a law. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05870-01-1
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