Reps. Maurice Hinchey, D-N.Y., and Henry B. Gonzalez, D- Tex., introduced legislation Tuesday that would prohibit unsolicited loans by mail.

"Banks should not be sending unsolicited loans through the mail where anyone can get their hands on them," Rep. Hinchey said. "Even if the loan check reaches its target, a trusting individual could sign it and wind up liable for an exorbitant amount."

Rep. Marge Roukema, R-N.J., who chairs House Banking's financial institutions subcommittee, has agreed to hold a hearing on the bill. Rep. Hinchey drew up the legislation after two New York residents complained about receiving a $7,500 loan check from Signet Bank. The loan carried a 20% annual interest rate.

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