The divide could not be bridged until Gov. Andrew M. Cuomo pressed for a compromise that assuaged some of the concerns about the environmental impact and included the consumer loan repayment option, which the Working Families Party had championed.
If the debt were owed to a furniture store, the bank would approve the loan application, based on the amount of the loan and the consumer's repayment history.
About one-fifth of the debt was from private student loans, which have fewer consumer protections and repayment options than federal loans.
Away from mortgages, the BBA said subdued spending had led to a 1.7% contraction in consumer credit, with repayments on credit cards, loans and overdrafts all outstripping new borrowing.
Private student loans — those made by nongovernment lenders — usually have higher interest rates and lack consumer protections, like flexible repayment options, available with federal loans.
Separate figures released by the British Bankers Associationn showed another net repayment of consumer debt in December, especially of overdrafts and personal loans.
It makes imported goods cheaper for consumers, and it makes repayment of the government's extensive dollar debts easier.
"Lenders must ensure these mortgages are taken out by consumers with a concrete repayment plan".
Apple, with iTunes for example, solved the micro-transaction problem with iTunes by essentially extending credit to consumers, taking on the repayment risk.
Unlike student loans made by the federal government, private loans lack some consumer protections, like income-based repayment plans to help borrowers manage payments, or deferments for military service.
