Bill Text: NY S01627 | 2011-2012 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO BANKS [S01627 Detail]

Download: New_York-2011-S01627-Introduced.html

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                           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:
    1    Section 1. The banking law is amended by adding a new section 14-g  to
    2  read as follows:
    3    S  14-G.    POWER  OF  THE  BANKING BOARD TO PRESCRIBE MAXIMUM RATE OF
    4  INTEREST ON CREDIT CARDS.  1.  AS USED IN THIS SECTION, THE TERM "CREDIT
    5  CARD" SHALL MEAN ANY CREDIT PLATE, CHARGE PLATE OR OTHER  IDENTIFICATION
    6  CARD  OR DEVICE WHICH IS ISSUED TO ANY LEGAL ENTITY AS THE HOLDER THERE-
    7  OF, AND MAY BE USED BY SUCH HOLDER TO OBTAIN A CASH ADVANCE OR A LOAN OR
    8  CREDIT, OR TO PURCHASE OR RENT PROPERTY OR SERVICES ON THE CREDIT OF THE
    9  ISSUER OR OF THE HOLDER.
   10    2.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER  LAW,  RULE  OR  REGU-
   11  LATION  TO THE CONTRARY, THE BANKING BOARD SHALL SET THE MAXIMUM RATE OF
   12  INTEREST FOR CREDIT CARDS, NOT  TO  EXCEED  EIGHTEEN  PERCENT  ANNUALLY.
   13  SUCH  RATE  MAY  ONLY  EXCEED EIGHTEEN PERCENT IF THE PRIME RATE EXCEEDS
   14  EIGHTEEN PERCENT FOR SIXTY CONSECUTIVE DAYS, BUT IN NO EVENT SHALL  SUCH
   15  NEW RATE ESTABLISHED BY THE BANKING BOARD BE MORE THAN ONE AND ONE-QUAR-
   16  TER PERCENT ABOVE THE PRIME RATE IN EFFECT AT THE TIME SUCH RATE IS SET.
   17    3.    NO  PERSON,  FIRM  OR CORPORATION SHALL, DIRECTLY OR INDIRECTLY,
   18  CHARGE, TAKE OR RECEIVE ANY MONEY, GOODS OR SERVICES AS INTEREST ON  THE
   19  EXTENSION  OF CREDIT AT A RATE EXCEEDING THE RATE PRESCRIBED PURSUANT TO
   20  SUBDIVISION TWO OF THIS SECTION.
   21    S 2. This act shall take effect on the thirtieth day  after  it  shall
   22  have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05870-01-1