The Financial Technology Association (FTA) submitted a letter opposing New York Senate Bill 1726 and Assembly Bill 4918, which propose interest rate limitations for financing arrangements and the extension of credit.
FTA represents companies committed to responsible innovation, financial inclusion, and strong consumer protections. While FTA appreciates the bills’ intent, the association opposes the legislation unless amended, citing several concerns:
- The bills would subject a broad range of products, including installment loans, buy now, pay later (BNPL), earned wage access (EWA), and revenue-based financing, to unnecessary usury limits, reducing access to financing.
- The legislation conflicts with Assembly Bill 258A, which would establish a licensing framework for EWA providers, and with the recently enacted BNPL provision in the Governor’s budget.
- Applying annual percentage rate (APR) caps to short-term, small-dollar products may confuse consumers; disclosing the total cost of capital is a more appropriate approach.
- A first-in-the-nation cap on expedited delivery fees, included in A258A, is a better alternative for regulating EWA.
Read the full comment letter here.