NYS Seal

ASSEMBLY STANDING COMMITTEE ON BANKS
ASSEMBLY SUBCOMMITTEE ON BANKING IN UNDERSERVED COMMUNITIES

NOTICE OF PUBLIC HEARING

SUBJECT:
Identifying alternatives to high-cost financial products.

PURPOSE:
To explore the feasibility, benefits and monetary commitment that would be necessary to implement a regional "borrow and save" pilot program.

NEW YORK CITY

Tuesday
November 25, 2014
10:00 AM
Assembly Hearing Room
250 Broadway, Room 1923, 19th Floor

In the aftermath of the 2007-2008 subprime mortgage crisis and the Great Recession standards for issuing credit have become more rigorous in order to protect borrowers from getting in over their heads, as many did before the Great Recession. An unfortunate result of the tightening of credit is that minority communities and other economically vulnerable populations have had a much more difficult time obtaining credit and have been subjected to predatory financial practices. For many working individuals, bridging the gap between paychecks has been achieved by alternative lenders that are not subject to state regulation.

To meet the demand for shorter term credit, certain banks have started a "borrow and save" program in which borrowers can obtain a six to twelve month loan of up to $1,500 with no minimum required credit score, with 25% of the loan being placed in a free savings account that is available to the borrower once the loan is repaid.

This hearing will examine the practicality of establishing a "borrow and save" pilot program in New York State.

Persons wishing to present pertinent testimony to the Committees at the above hearing should complete and return the enclosed reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of emergency postponement or cancellation.

Oral testimony will be limited to 10 minutes' duration. In preparing the order of witnesses, the Committee will attempt to accommodate individual requests to speak at particular times in view of special circumstances. These requests should be made on the attached reply form or communicated to Committee staff as early as possible.

Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committee would appreciate advance receipt of prepared statements.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.

Annette M. Robinson
Member of Assembly
Chair
Committee on Banks
David I. Weprin
Member of Assembly
Chair
Subcommittee on Banking in Underserved Communities



PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing on Alternatives to High Cost Financial Products are requested to complete this reply form as soon as possible and mail, email or fax it to:

Ocasio Willson
Committee Assistant
Assembly Committee on Banks
New York State Capitol Bldg., Rm 513
Albany, New York 12248
Email: willsono@assembly.state.ny.us
Phone: (518) 455-4355
Fax: (518) 455-7250
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I plan to attend the following public hearing Identifying Alternatives to High Cost Financial Products to be conducted by the Assembly Committee on Banks and the Subcommittee on Banking in Underserved Communities on November 25, 2014.
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I plan to make a public statement at the hearing. My statement will be limited to 10 minutes, and I will answer any questions which may arise. I will provide 10 copies of my prepared statement.
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I will address my remarks to the following subjects:




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I do not plan to attend the above hearing.
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I would like to be added to the Committees' mailing list for notices and reports.
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I would like to be removed from the Committees' mailing list.
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I will require assistance and/or handicapped accessibility information. Please specify the type of assistance required:




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