In the aftermath of the 2007-2008 subprime mortgage crisis and the Great Recession standards for issuing credit have become more rigorous in order to protect borrowers from getting in over their heads, as many did before the Great Recession. An unfortunate result of the tightening of credit is that minority communities and other economically vulnerable populations have had a much more difficult time obtaining credit and have been subjected to predatory financial practices. For many working individuals, bridging the gap between paychecks has been achieved by alternative lenders that are not subject to state regulation.

To meet the demand for shorter term credit, certain banks have started a "borrow and save" program in which borrowers can obtain a six to twelve month loan of up to $1,500 with no minimum required credit score, with 25% of the loan being placed in a free savings account that is available to the borrower once the loan is repaid.

This hearing will examine the practicality of establishing a "borrow and save" pilot program in New York State.

Persons wishing to present pertinent testimony to the Committees at the above hearing should complete and return the enclosed reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of emergency postponement or cancellation.

Oral testimony will be limited to 10 minutes' duration. In preparing the order of witnesses, the Committee will attempt to accommodate individual requests to speak at particular times in view of special circumstances. These requests should be made on the attached reply form or communicated to Committee staff as early as possible.

Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committee would appreciate advance receipt of prepared statements.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.

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Persons wishing to present testimony at the public hearing on Alternatives to High Cost Financial Products are requested to complete this reply form as soon as possible and mail, email or fax it to: