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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 S 8115-C would add Banking Law section 103-a on automated lending decision-making tools used by banking organizations, licensed foreign and interstate branches and licensed lenders (national and federal institutions are excluded). Covered entities must get an annual independent impact assessment, post the final report on their website, keep records for seven years, report discriminatory outcomes to the department within thirty days, and give applicants notice at least 24 hours before use. Reported from Banks and committed to Internet and Technology May 12, 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, covered banks and licensed lenders using automated lending tools would need annual independent assessments, public reports, applicant notices and bias reporting.
Key provisions
- Annual impact assessment with an independent third party, and a new one before any material change; the report covers objectives, training data, bias and discrimination testing, security and privacy risks and applicant notification, and must be posted on the entity's website before use
- Keep assessments and summaries for seven years and provide them to the department within seven days of the superintendent's 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
- Plain-language notice with an affirmative acknowledgment at least 24 hours before screening an applicant; denial reason within 24 hours of denial; applicants have thirty days to correct incorrect personal information and appeal, and the lender has thirty days to respond
- The superintendent may investigate, compel records and testimony, and require further reports; no penalty amounts or private right of action are stated
- Version C contains no consent or opt-out right (earlier versions did); Assembly companion A773; takes effect on the ninetieth day after it becomes law
Latest legislative action
May 12, 2026. reported and committed to internet and technology
Sponsors (showing 5 of 6)
| Name | Role |
|---|---|
| CLEARE | Primary |
| HOYLMAN | Primary |
| James Sanders Jr. | Primary |
| James Skoufis D | Primary |
| SANDERS | Primary |
Roll call votes
Banks Vote May 27, 2025
4 yea2 nay1 otherPassed
Topics and industries
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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