New York City Council Header
File #: Int 1971-2020    Version: * Name: Requiring the dept of consumer affairs to study access to financial services.
Type: Introduction Status: Committee
Committee: Committee on Consumer Affairs and Business Licensing
On agenda: 6/18/2020
Enactment date: Law number:
Title: A Local Law in relation to requiring the department of consumer affairs to study access to financial services
Sponsors: Carlos Menchaca, Ben Kallos
Council Member Sponsors: 2
Summary: This bill would require the Department of Consumer Affairs to study access to banking and financial services throughout the City. This bill would require the study to focus on issues that banks face to open in unbanked and underbanked areas, and barriers that individuals, particularly low-income individuals and immigrants, face in accessing banking and other financial services. The bill would also require a report on the findings of the study to be submitted to the Mayor and the Speaker of the Council no later than one year after the effective date of the local law.
Indexes: Report Required
Attachments: 1. Summary of Int. No. 1971, 2. Int. No. 1971, 3. June 18, 2020 - Stated Meeting Agenda with Links to Files, 4. Hearing Transcript - Stated Meeting 6-18-20, 5. Minutes of the Stated Meeting - June 18, 2020

Int. No. 1971

 

By Council Members Menchaca and Kallos

 

A Local Law in relation to requiring the department of consumer affairs to study access to financial services

 

Be it enacted by the Council as follows:

 

Section 1. Study on access to financial services. a. Definitions. As used in this section, the following terms have the following meanings:

Department. The term “department” means the department of consumer affairs.

Unbanked. The term “unbanked” means a household in which no individual has a checking or savings account.

Underbanked. The term “underbanked” means a household in which at least one individual has a checking or savings account and has used one of the following products or services from an alternative financial services provider in the past 12 months: money orders, check cashing, international remittances, payday loans, refund anticipation loans, rent-to-own services, pawn shop loans or auto title loans.

b. The department shall conduct a study on access to financial services. In completing such study, the department shall:

1. Identify areas of the city of New York with unbanked and underbanked households;

2. Identify the issues related to opening branches of small and large commercial banks in areas with unbanked and underbanked households;

3. Identify the barriers that individuals, particularly low-income individuals and immigrants, face in accessing banking and other financial services; and

4. Recommend methods for public banks to obtain capital.

c. The department shall report the study’s findings and recommendations to the mayor and the speaker of the council no later than 1 year after the effective date of this local law. Such report shall include a recommendation as to whether any additional studies would further the objective of improving access to financial services.

§ 2. This local law takes effect 30 days after it becomes law.

 

JEF

LS 10067

2/19/2020