Legislation (S.1684/A.8293) Directs the Department of Financial Services to Conduct a Study on Underbanked Communities
Legislation (S.4894/A.1693) Prohibits Banking Organizations from Issuing Unsolicited Mail-Loan Checks
Governor Kathy Hochul today signed legislation that boosts consumer protections and addresses inequities in the state's financial services system. Legislation (S.1684/A.8293) directs the Department of Financial Services to conduct a study of underbanked communities and households in New York and make recommendations to improve access to financial services for them. Legislation (S.4894/A.1693) protects consumers from potentially unsafe banking products by prohibiting the issuance of unsolicited mail-loan checks.
"This legislation is the first step in remedying the lack of safe and accessible banking services that contribute to the inequities in our state's financial system," Governor Hochul said. "Dangerous mail-loan checks and banking deserts prevent already underserved New Yorkers from safely accessing the services they need to build wealth and pursue economic prosperity. I am proud to sign this legislation into law that will boost consumer protections for New Yorkers and explore ways to bring these much-needed resources to consumers."
“Protecting consumers and delivering data-driven policies to help implement a more equitable and resilient financial sector in New York is a top priority for DFS,” Superintendent of Financial Services Adrienne A. Harris said. “We look forward to engaging with all stakeholders in order to shed light on the current state of financial services in underserved areas and propose collaborative recommendations to increase access to financial services for the benefit of all New Yorkers.”
Legislation (S.1684/A.8293) directs the Department of Financial Services to conduct a study of underbanked communities and households in New York and make recommendations to improve access to financial services for them. Access to safe and affordable financial services is necessary in building financial stability but far too many New Yorkers are either unbanked, with no access to a checking or savings account, or underbanked, with access to some banking services but also the need to use alternative and riskier financial services such as payday loans. This bill will update the numbers of households that are unbanked and underbanked and analyze the data to develop an assessment for New York State's Department of Financial Services to more effectively aid these communities.
Legislation (S.4894/A.1693) protects consumers from potentially unsafe banking products by prohibiting banking institutions from issuing unsolicited mail-loan checks. A mail-loan check is a an unsolicited loan offer that is sent by mail and once cashed or deposited binds the recipient to the loan terms, which may include high interest rates for multiple years. The practice of mailing unsolicited loan checks can prove confusing and dangerous for consumers and this legislation will protect New Yorkers from the associated risk.
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