New York Assembly Bill A07020 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 7020 2025-2026 Regular Sessions  IN ASSEMBLY March 18, 2025 ___________ Introduced by M. of A. SMITH, DURSO, TAGUE, MIKULIN -- read once and referred to the Committee on Banks AN ACT to amend the banking law and the general business law, in relation to capping the interest rate on credit cards for personal use; and providing for the repeal of such provisions upon the expira- tion thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 14-a of the banking law, as added 2 by chapter 883 of the laws of 1980, is amended to read as follows: 3 1. The maximum rate of interest provided for in section 5-501 of the 4 general obligations law shall be sixteen per centum per annum; provided, 5 however, that a credit card for personal, family, or household purposes 6 issued by a New York state banking institution to an individual residing 7 in this state shall have a maximum rate of interest of ten per centum 8 per annum, and any rate in excess of such maximum rate on any card 9 issued either before or after the effective date of the chapter of the 10 laws of two thousand twenty-five that amended this subdivision shall be 11 void as against public policy. Whenever the attorney general has reason 12 to believe that there has been a violation of this provision, the attor- 13 ney general may apply to the supreme court in any county wherein any 14 such violation occurred for the purpose of restraining and enjoining the 15 continuance of such violation. 16 § 2. The general business law is amended by adding a new section 515-a 17 to read as follows: 18 § 515-a. Use of certain credit cards prohibited. No person shall use a 19 credit card for personal, family, or household purchases if the interest 20 rate for such card exceeds the maximum rate for credit cards issued for 21 personal use as set forth in subdivision one of section fourteen-a of 22 the banking law. 23 § 3. This act shall take effect immediately and shall expire and be 24 deemed repealed 5 years after such date. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10804-01-5