Bill Text: NY A02282 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Engrossed) 2024-03-11 - REFERRED TO BANKS [A02282 Detail]

Download: New_York-2023-A02282-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2282

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 25, 2023
                                       ___________

        Introduced  by  M.  of  A. STIRPE, SAYEGH, SANTABARBARA -- read once and
          referred to the Committee on Banks

        AN ACT to amend the banking law, in relation to  requiring  transmitters
          of money to provide a certain warning to consumers

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The banking law is amended by adding a new section 652-c to
     2  read as follows:
     3    § 652-c. Required warning. 1.   A person engaged in  the  business  of
     4  receiving  money for transmission or transmitting money by wire or elec-
     5  tronic transfer which, at the request of an individual who in-person, by
     6  telephone or electronic means transmits funds to another  person,  busi-
     7  ness or entity, shall:
     8    (a)  provide  a clear, concise, and conspicuous consumer fraud warning
     9  prior to initiating the money transfer  transaction  and  on  all  funds
    10  transfer forms used by consumers to send money to an individual;
    11    (b)  provide  annual  consumer  fraud  prevention  training for agents
    12  involved with funds transfers;
    13    (c) monitor agent activity relating to consumer funds transfers; and
    14    (d) establish a toll-free number for consumers to call to report fraud
    15  or suspected fraud and provide information on how to stop a transfer.
    16    2. The warning required by this section shall not apply  to  an  elec-
    17  tronic  funds  transfer  in  which funds are not transferred directly to
    18  another person and are not available for immediate use.
    19    3. A violation of the provisions of this section shall  be  punishable
    20  by  a  civil  penalty of not more than two hundred fifty dollars for the
    21  first violation and five hundred dollars for each subsequent violation.
    22    § 2. This act shall take effect on the one hundred eightieth day after
    23  it shall have become a law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00388-01-3