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Bill

A 7020

Relates to fixing a maximum interest rate for credit cards issued or used in this state

2025 Regular Session Introduced by Joe Angelino and 16 co-sponsors

The bill sets a statewide cap on credit card APRs in New York to shield residents from high interest, affecting issuers and lenders and establishing enforcement.

HELD FOR CONSIDERATION IN BANKS
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WeVote Research Nonpartisan
Bill Summary · A 7020

Summary: Bill A 7020 — Relates to fixing a maximum interest rate for credit cards issued or used in this state

Purpose and intent

  • The bill aims to establish a fixed maximum interest rate (APR) for credit cards issued or used by residents within New York State. The primary goal is to protect consumers from excessively high card interest by setting a statewide cap.

What the bill would do

  • Create or designate a maximum permissible APR for credit cards issued to or used by individuals in New York.
  • Apply the cap to credit card accounts and transactions that occur within the state.
  • Establish definitions and scope to determine what constitutes a credit card and who is covered (likely issuers and users within the state, including residents and potentially in-state issuances).
  • Provide enforceable standards and penalties for violations by credit card issuers or lenders.
  • Outline effective dates and transitional rules, if any, to implement the cap.

Note: The exact cap amount, any exemptions (for example, business/commercial cards, secured cards, or certain types of loans), and the specific enforcement mechanisms are not provided in the materials you shared. The actual text would specify these details.

Key provisions to expect (typical elements in such bills)

  • Definition section clarifying terms (e.g., “credit card,” “APR,” “resident,” “issuance”).
  • The maximum APR and guidelines for how it applies to existing and new accounts.
  • Exemptions, such as business, corporate, or other non-consumer credit arrangements, if included.
  • Enforcement provisions (who enforces, penalties for violations, potential private rights of action, and remedies).
  • Effective date and any phase-in or transitional period.
  • Consumer protections related to disclosures, marketing, and settlement of disputes.

Affected parties

  • Primary impact: credit card issuers and lenders operating in New York who issue cards to state residents or whose card usage occurs in-state.
  • Consumers: credit card holders in New York would be directly affected by the cap on interest charges.
  • Financial-services regulators and state agencies responsible for banking/consumer protection.

Procedural status and timeline

  • Introduced: March 18, 2025.
  • Referred to the Assembly Banks committee on March 18, 2025.
  • Recently and repeatedly noted as “HELD FOR CONSIDERATION IN BANKS” in actions on June 4, 2025 (indicating the committee did not report the bill to the floor at that time).
  • Current status: HELD FOR CONSIDERATION IN BANKS (no final passage as of the latest actions provided).

Sponsors

  • Primary sponsor: Doug Smith
  • Co-sponsors: Includes a broad group of Assembly members (e.g., Scott H. Bendett, John Lemondes, Matthew Simpson, Brian Manktelow, Michael Tannousis, Jeff Gallahan, Chris Tague, Joe DeStefano, Alec Brook-Krasny, Andrea Bailey, Joe Angelino, John K. Mikulin, Michael Durso, Matthew Slater, Samuel Pirozzolo, Mike Reilly, and others).

Potential impacts and considerations

  • Consumer protection benefits from a statewide cap could reduce finance charges for cardholders.
  • Lenders might reassess card pricing structures, risk-based pricing, or the availability of certain card products.
  • Possible legal considerations, including compatibility with federal usury laws and interstate commerce implications.
  • Administrative and compliance costs for issuers to align product offerings with the cap.

If you’d like, I can provide a follow-up with the exact text once the bill’s full language becomes available, which would specify the cap amount, exemptions, enforcement, and effective date.

Compiled from official sources — confirm details with the bill’s official record.

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