Extends interest rate caps and criminal usury framework to covered services like retail installment contracts and merchant cash advances.

This bill amends the general obligations law, banking law, and penal law to extend interest rate caps and criminal usury framework to covered services. These services include retail installment contracts, merchant cash advances, invoice financing, revenue-based financing, and any transaction that functions as the advance of funds in exchange for a future payment or obligation. The bill sets a maximum interest rate of 25% per annum and classifies violations as criminal usury, with penalties including fines and imprisonment.

Extends interest rate caps and criminal usury framework to covered services like retail installment contracts and merchant cash advances.

This bill amends the general obligations law, banking law, and penal law to extend interest rate caps and criminal usury framework to covered services. These services include retail installment contracts, merchant cash advances, invoice financing, revenue-based financing, and any transaction that functions as the advance of funds in exchange for a future payment or obligation. The bill sets a maximum interest rate of 25% per annum and classifies violations as criminal usury, with penalties including fines and imprisonment.