Establishes the task force on online lending institutions to identify the main participants in the online lending industry, how they serve consumers and small businesses, the impact thereof, and to report its findings and recommendations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8260A
SPONSOR: Zebrowski TITLE OF BILL: An act to establish the task force on online lending
institutions, and providing for its powers and duties; and providing for
the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to establish a task force on online lending
for further understanding of the industry.
SUMMARY OF PROVISIONS:
This bill would establish a task force on online lending that would
consist of seven members including;
*three members appointed by the governor;
*two members appointed by the temporary President of the Senate;
*two members appointed by the Speaker of the Assembly.
This bill outlines that the purpose of this task force is to identify
the main participants in the online lending industry, how they serve
consumers and small businesses in this state, and their current and
anticipated impact on consumers and small business.
On or before April 15, 2018, the task force shall submit to the Gover-
nor, the temporary President of the Senate, and the Speaker of the
House, a report containing analysis and assessments pertaining to the
online lending industry outlined in section two of this bill.
JUSTIFICATION:
Online lending is a practice which is rapidly expanding in usage.
Online lenders issued over $20 billion in loans in 2015, and that number
is expected to grow over the next decade. Although online loans can
provide another avenue for entrepreneurs to acquire capital and grow
their small businesses, there is also significant potential for unscru-
pulous online lenders to exploit consumers through predatory practices
such as unusually high interest rates, lack of disclosure of hidden
fees, and unclear loan terms.
This task force will seek to explore the current state of online lend-
ing, the impact of online lending on consumers and small businesses in
New York State, predatory online lending practices which need to be
mitigated, and potential regulatory or legislative action which may be
needed to address predatory online lending practices.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None noted.
EFFECTIVE DATE:
This act shall take effect immediately.
