As announced in September, the NY State Department of Financial Services has issued a second round of revised regulations for New York State’s commercial finance disclosure law.

SFNet has submitted a comment letter addressing the latest round of proposed regulations. SFNet’s Advocacy Committee has been working with DFS on scope of the disclosure law and the proposed regulation since early 2021 and has previously provided detailed comments and suggested revisions to the initial draft regulations. While SFNet is pleased that DFS has accepted some of SFNet’s comments, as contained in the revised regulations, particularly with regard to excluding the disclosure of certain collection factoring fees with regard to the APR calculation and adding a requirement for a six-month waiting period between the adoption of final regulations and the date the law will go into effect; SFNet, nevertheless, has serious concerns about other aspects of the revised regulations. 
 
Of particular note: Section 600.24 of the revised draft regulations provides that all lenders affected by the NY State disclosure law and principally managed in New York must comply with the NYS disclosure law regardless of where the borrower is located. 
If you have questions, please reach out to Michele Ocejo at mocejo@sfnet.com.

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