NY Leg Authorizes Study On Online Lending

The New York State Senate passed a bill just before Christmas that will commission a task force to study and report back on the online lending industry. The bill has already been approved by both houses of the New York legislature and only awaits a signature from Governor Andrew Cuomo to be set in motion.

The stated purpose of the 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.” The final report is due to the governor and legislature by April 15, 2018.

New York, home to some of the biggest financial institutions in the world, has long thought of itself as the leading voice in financial services regulation. Maria Vullo, head of the New York Department of Financial Services, has led a push to curtail FinTech and block the Office of the Comptroller of the Currency (OCC) from issuing special purpose bank charters to online lenders. New York’s lawsuit against the OCC was recently dismissed as speculative.