Assemblyman Angelo Santabarbara today announced that legislation he sponsored to prohibit lending institutions from sending unsolicited “live loan checks” through the mail has passed both houses of the State Legislature and is now headed to the Governor’s desk (A9404A)

Live loan checks often resemble ordinary checks, rebates, refunds, or other legitimate payments. However, when deposited or cashed, they can automatically create a loan agreement, leaving consumers responsible for repayment, interest charges, and additional fees — often without fully knowing the financial obligation they are accepting.

The legislation prohibits lenders from mailing unsolicited live loan checks to consumers, ensuring that loans are issued only when an individual affirmatively applies for or requests credit.

“Consumers should never find themselves in debt because of a check they never requested,” said Assemblyman Angelo Santabarbara. “These unsolicited loan checks often target unsuspecting consumers, including seniors, individuals living on fixed incomes, and families facing financial pressures. They can look like legitimate checks, but depositing them can trigger loan obligations, interest charges, and fees that people may not be aware of. This legislation ensures that borrowing money is a choice — not a trap.”

Consumer advocates have long raised concerns that unsolicited live loan checks can lead consumers—particularly seniors, individuals on fixed incomes, and families facing financial hardship—to unknowingly take on unwanted debt. This legislation strengthens consumer protection by prohibiting the practice, increasing transparency in lending, and ensuring that individuals and families maintain control over important financial decisions while safeguarding them from deceptive lending tactics and unnecessary financial burdens.