Section 20-780
* § 20-780 Definitions. a. "Person" shall mean any individual, firm,
partnership, trust, association, corporation or other legal entity. This
term shall not include any individual, firm, partnership, trust,
association, corporation or other legal entity that accepts federally
insured deposits, such as national banks, state-chartered banks, or
savings and loan associations, or any individual, firm, partnership,
trust, association, corporation or other legal entity regulated by or
subject to the rules and regulations of the Board of Governors of the
Federal Reserve System, Office of the Comptroller of the Currency,
Federal Deposit Insurance Corporation or Office of Thrift Supervision of
the Department of the Treasury.
b. "Payday loan," also known as, among other terms, "deferred deposit
advances," "cash on demand" or "cash advance," shall mean any
transaction in which funds are provided to a consumer for a limited time
period in exchange for (i) a consumer's personal check or share draft,
in the amount of the funds provided to the consumer plus a fee, where
presentment or negotiation of such check or share draft is deferred by
agreement of the parties until a designated future date; or (ii) a
consumer's authorization to debit the consumer's transaction account, in
the amount of the funds provided to the consumer plus a fee, where such
account will be debited on or after a designated future date.
* NB There are 2 § 20-780's
Section 20-781.
§ 20-781. Disclosure of loan information. Before any consumer enters
into a payday loan, the person offering, providing, or facilitating such
loan shall provide to the consumer in writing all disclosure required
pursuant to the federal Truth in Lending Act in addition to the
following disclosure, in English and Spanish, in at least 20-point type:
YOU ARE NOT REQUIRED TO ENTER INTO THIS PAYDAY LOAN AGREEMENT MERELY
BECAUSE YOU HAVE RECEIVED THIS INFORMATION.
IF YOU DO SIGN A CONTRACT FOR A PAYDAY LOAN, YOU WILL BE TAKING OUT A
LOAN. YOU WILL BE RESPONSIBLE FOR REPAYMENT OF THE ENTIRE LOAN AMOUNT
AND ALL RELATED COSTS AND FEES.
IF YOU CANNOT PAY OFF THIS LOAN IN FULL, THE LENDER MIGHT NOT PERMIT
YOU TO MAKE A PARTIAL PAYMENT. IN THAT SITUATION, YOU MAY BE REQUIRED TO
TAKE OUT AN ADDITIONAL PAYDAY LOAN TO PAY OFF YOUR INITIAL DEBT.
EACH TIME YOU EXTEND THIS PAYDAY LOAN OR TAKE OUT AN ADDITIONAL PAYDAY
LOAN, YOU WILL BE CHARGED ADDITIONAL COSTS AND FEES.
IF YOU DO TAKE OUT THIS PAYDAY LOAN, YOU WILL BE RESPONSIBLE TO PAY
${insert amount} IN FINANCE CHARGES FOR THE LOAN. AFTER THESE FINANCE
CHARGES ARE PAID, YOU WILL RECEIVE APPROXIMATELY ${insert amount} AS
YOUR LOAN.
THE ESTIMATED ANNUAL PERCENTAGE RATE OF YOUR PAYDAY LOAN IS {insert
amount} %. THIS IS THE COST OF YOUR CREDIT AT A YEARLY RATE.
It shall be the obligation of the person offering, providing, or
facilitating the payday loan to complete the required disclosure
accurately with all relevant information for each consumer and to ensure
that the completed disclosure form is signed by the consumer before he
or she enters into the payday loan.
Section 20-782.
§ 20-782. Consumer information. Not later than the first day of
February of the year two thousand and five and on a quarterly basis
thereafter, not later than February first, May first, August first, and
November first of each year, any person offering, providing, or
facilitating a payday loan in New York city shall submit to the
department of consumer affairs and the council the residential zipcode
of each consumer who lives within the city boundaries and has entered
into a payday loan during the immediately preceding quarter.
Section 20-783.
§ 20-783. Penalties. Any person who shall violate any of the
provisions of this subchapter shall be subject to a civil penalty of not
less than two hundred fifty dollars nor more than one thousand dollars
for each violation.
Section 20-784.
§ 20-784. Hearing authority. (1) Notwithstanding any other provision
of law, the department shall be authorized upon due notice and hearing,
to impose civil penalties for the violation of any provision of this
subchapter. The department shall have the power to render decisions and
orders and to impose civil penalties not to exceed the amounts specified
in section 20-783 of this subchapter for each such violation. All
proceedings authorized pursuant to this subdivision shall be conducted
in accordance with rules promulgated by the commissioner. The remedies
and penalties provided for in this subdivision shall be in addition to
any other remedies or penalties provided for the enforcement of such
provisions under any other law including, but not limited to, civil or
criminal actions or proceedings.
(2) All such proceedings shall be commenced by the service of a notice
of violation returnable to the administrative tribunal of the
department. The commissioner shall prescribe the form and wording of
notices of violation. The notice of violation or copy thereof when
filled in and served shall constitute notice of the violation charged,
and, if sworn to or affirmed, shall be prima facie evidence of the facts
contained therein.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
Special thanks to Benjarmin Kallos and Thom Neale who made this content publicly available as a bulk download.