This week, AFSA’s State Government Affairs team sent a letter to the New York Department of Financial Services (DFS) regarding DFS’ proposed rules on commercial financing. Published on September 14, the proposed rule would clarify disclosure requirements for providers offering commercial financing. In the letter, AFSA requested that DFS exempt transactions that provide disclosures that comply with the federal Truth in Lending Act (TILA). Many AFSA members provide voluntary TILA disclosures to commercial borrowers, and additional NY-specific disclosures would only prove duplicative and confusing to consumers. Furthermore, AFSA reiterated its request from previous comments that DFS add a section to the rules explicitly noting the entities that are already exempt from the statutory requirements such as depository institutions and certain commercial financing arrangements with vehicle dealers. This change would reinforce provisions present in New York statute and make clear which entities and transactions are subject to proposed requirements.
This letter, along with SGA’s other recent letters, can be found on the direct advocacy section of AFSA’s website.