View full title
Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions; allows loan applicants to consent to or opt out of such use.
In one paragraph
New York's A 773-C would add Banking Law § 103-a requiring covered banking organizations and licensed lenders that use automated lending decision-making tools to commission an annual independent impact assessment and post a summary report, report discriminatory or biased findings to the Department within thirty days, and give applicants notice at least 24 hours before use and, to the extent practicable, a denial reason within 24 hours. It contains no consent or opt-out right. Reported and advanced to third reading (calendar 393) April 30, 2026; it has not passed either chamber.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill is pending. If enacted, state-regulated banking organizations and licensed lenders using automated lending tools would need annual independent impact assessments, public reports and applicant notices.
Key provisions
- Covered entities (banking organizations, licensed lenders, foreign banks licensed in New York) exclude national banks, federal savings institutions and federal credit unions
- At least annually, and before any material change, an independent third party must assess each tool; a final report is posted on the entity's website
- Assessment must test accuracy, fairness, bias, discrimination, cybersecurity, privacy, safety risks and misuse; records kept seven years and given to the Department within seven days of notice
- If an assessment finds discriminatory or biased outcomes, report to the Department within thirty days; the Department must then direct the entity to stop using the tool
- Applicants must acknowledge a plain-language notice at least 24 hours before use and get any denial reason, to the extent practicable, within 24 hours; 30 days to correct incorrect data and appeal, and 30 days for the lender to respond
- Superintendent may investigate, compel testimony and records, and require additional reports; no penalty amounts or private right of action stated
- Would take effect on the 90th day after becoming law
Latest legislative action
Apr 30, 2026. advanced to third reading cal.393
Sponsors (showing 5 of 7)
| Name | Role |
|---|---|
| CAHILL | Primary |
| Linda Rosenthal D | Primary |
| PRETLOW | Primary |
| ROSENTHAL L | Primary |
| Dana Levenberg D | Cosponsor |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error