Bill Text: NY A09206 | 2011-2012 | General Assembly | Introduced
Bill Title: Enacts the "consumer credit fairness act"; establishes a 3 year statute of limitations for commencement of a cause of action arising out of a consumer credit transaction where the defendant is a purchaser, borrower or debtor; establishes a notice of lawsuit which must be mailed to the defendant in such a cause of action; establishes certain requirements for the complaint in such an action; provides for arbitration of such actions; requires debt collectors to send consumers a written notice of their rights under state law along with their initial debt collection correspondence; such notice would contain information such as who and when a principal creditor may contact a debtor about the debt owed as well as the fact that a principal creditor cannot disclose information affecting a consumer debtor's reputation for creditworthiness if the principal creditor knows or has reason to know such information is false; applies to consumer rather than commercial debts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-02-29 - enacting clause stricken [A09206 Detail]
Download: New_York-2011-A09206-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
9206
I N A S S E M B L Y
February 3, 2012
___________
Introduced by M. of A. MOYA -- read once and referred to the Committee
on Judiciary
AN ACT to amend the civil practice law and rules, in relation to consum-
er credit transactions; and to amend the general business law and the
executive law, in relation to debt collection notices
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "consumer credit fairness act".
3 S 2. Subdivision 2 of section 213 of the civil practice law and rules,
4 as amended by chapter 709 of the laws of 1988, is amended to read as
5 follows:
6 2. an action upon a contractual obligation or liability, express or
7 implied, except as provided in section two hundred thirteen-a OR TWO
8 HUNDRED FOURTEEN-F of this article or article 2 of the uniform commer-
9 cial code or article 36-B of the general business law;
10 S 3. The civil practice law and rules is amended by adding a new
11 section 214-f to read as follows:
12 S 214-F. CERTAIN ACTIONS ARISING OUT OF CONSUMER CREDIT TRANSACTIONS
13 TO BE COMMENCED WITHIN THREE YEARS. AN ACTION ARISING OUT OF A CONSUMER
14 CREDIT TRANSACTION WHERE A PURCHASER, BORROWER OR DEBTOR IS A DEFENDANT
15 MUST BE COMMENCED WITHIN THREE YEARS, EXCEPT AS PROVIDED IN SECTION TWO
16 HUNDRED THIRTEEN-A OF THIS ARTICLE OR ARTICLE 2 OF THE UNIFORM COMMER-
17 CIAL CODE OR ARTICLE 36-B OF THE GENERAL BUSINESS LAW. WHEN THE PERIOD
18 WITHIN WHICH AN ACTION MAY BE COMMENCED UNDER THIS SECTION HAS EXPIRED,
19 THE RIGHT TO COLLECT CONSUMER CREDIT DEBT IS EXTINGUISHED AS WELL AS THE
20 REMEDY.
21 FOR PURPOSES OF THIS SECTION, "THE RIGHT TO COLLECT CONSUMER CREDIT
22 DEBT" SHALL MEAN ANY ATTEMPTS BY THE CREDITOR, THIRD PARTY PURCHASER, OR
23 OTHER AUTHORIZED THIRD PARTY TO COLLECT SUCH DEBT INCLUDING, BUT NOT
24 LIMITED TO, CALLS, MAIL OR OTHER ATTEMPTS TO COLLECT.
25 S 4. The civil practice law and rules is amended by adding a new
26 section 306-d to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01288-09-2
A. 9206 2
1 S 306-D. ADDITIONAL MAILING OF NOTICE IN AN ACTION ARISING OUT OF A
2 CONSUMER CREDIT TRANSACTION. 1. AT THE TIME OF FILING WITH THE CLERK OF
3 THE PROOF OF SERVICE OF THE SUMMONS AND COMPLAINT IN AN ACTION ARISING
4 OUT OF A CONSUMER CREDIT TRANSACTION, THE PLAINTIFF SHALL SUBMIT TO THE
5 CLERK A STAMPED ENVELOPE ADDRESSED TO THE DEFENDANT TOGETHER WITH A
6 WRITTEN NOTICE IN CLEAR TYPE OF NO LESS THAN TWELVE-POINT IN SIZE, IN
7 BOTH ENGLISH AND SPANISH, AND CONTAINING THE FOLLOWING LANGUAGE:
8 NOTICE OF LAWSUIT
9 (DATE)
10 (NAME OF COURT)
11 (COUNTY)
12 (STREET ADDRESS, ROOM NUMBER)
13 (CITY, STATE, ZIP CODE)
14 (NAME OF DEFENDANT)
15 (ADDRESS OF DEFENDANT)
16 PLAINTIFF:__________________________________
17 DEFENDANT:__________________________________
18 NAME OF ORIGINAL CREDITOR, UNLESS SAME:______________________________
19 INDEX NUMBER:_______________________________
20 ATTENTION: A LAWSUIT HAS BEEN FILED AGAINST YOU CLAIMING THAT YOU OWE
21 MONEY FOR AN UNPAID CREDIT CARD, MEDICAL, STUDENT LOAN OR OTHER DEBT.
22 YOU SHOULD GO TO THE COURT CLERK'S OFFICE AT THE ABOVE ADDRESS AS SOON
23 AS POSSIBLE TO RESPOND TO THE LAWSUIT. YOU MAY WISH TO CONTACT AN ATTOR-
24 NEY. IF YOU DO NOT HAVE AN ATTORNEY, HELP IS AVAILABLE AT THE COURT.
25 IF YOU DO NOT RESPOND TO THE LAWSUIT, THE COURT MAY ENTER A JUDGMENT
26 AGAINST YOU. ONCE ENTERED, A JUDGMENT IS GOOD AND CAN BE USED AGAINST
27 YOU FOR TWENTY YEARS, AND YOUR MONEY, INCLUDING A PORTION OF YOUR
28 PAYCHECK AND/OR BANK ACCOUNT, MAY BE TAKEN. ALSO, A JUDGMENT WILL HURT
29 YOUR CREDIT SCORE AND CAN AFFECT YOUR ABILITY TO RENT A HOME, FIND A
30 JOB, OR TAKE OUT A LOAN.
31 YOU CANNOT BE ARRESTED OR SENT TO JAIL FOR OWING A DEBT.
32 IT IS IMPORTANT THAT YOU GO TO THE COURT CLERK'S OFFICE LISTED ABOVE AND
33 BRING THIS NOTICE WITH YOU. ADDITIONAL INFORMATION CAN BE FOUND AT THE
34 COURT SYSTEM WEBSITE AT: WWW.COURTS.STATE.NY.US
35 2. THE FACE OF THE ENVELOPE SHALL BE ADDRESSED TO THE DEFENDANT AT THE
36 ADDRESS AT WHICH PROCESS WAS SERVED, AND SHALL CONTAIN THE DEFENDANT'S
37 NAME, ADDRESS (INCLUDING APARTMENT NUMBER) AND ZIP CODE. THE FACE OF THE
38 ENVELOPE ALSO SHALL STATE THE APPROPRIATE CLERK'S OFFICE AS ITS RETURN
39 ADDRESS.
40 3. THE CLERK PROMPTLY SHALL MAIL TO THE DEFENDANT THE ENVELOPE
41 CONTAINING THE ADDITIONAL NOTICE SET FORTH IN SUBDIVISION ONE OF THIS
42 SECTION. NO DEFAULT JUDGMENT BASED ON THE DEFENDANT'S FAILURE TO ANSWER
43 SHALL BE ENTERED UNLESS THERE HAS BEEN COMPLIANCE WITH THIS SECTION, AND
44 AT LEAST TWENTY DAYS HAVE ELAPSED FROM THE DATE OF MAILING BY THE CLERK.
45 S 5. Subdivision (a) of section 3012 of the civil practice law and
46 rules is amended to read as follows:
47 (a) Service of pleadings. The complaint may be served with the
48 summons, EXCEPT THAT IN AN ACTION ARISING OUT OF A CONSUMER CREDIT TRAN-
49 SACTION, THE COMPLAINT SHALL BE SERVED WITH THE SUMMONS. A subsequent
50 pleading asserting new or additional claims for relief shall be served
51 upon a party who has not appeared in the manner provided for service of
52 a summons. In any other case, a pleading shall be served in the manner
A. 9206 3
1 provided for service of papers generally. Service of an answer or reply
2 shall be made within twenty days after service of the pleading to which
3 it responds.
4 S 6. Rule 3016 of the civil practice law and rules is amended by
5 adding a new subdivision (i) to read as follows:
6 (I) CONSUMER CREDIT TRANSACTIONS. IN AN ACTION ARISING OUT OF A
7 CONSUMER CREDIT TRANSACTION WHERE A PURCHASER, BORROWER OR DEBTOR IS A
8 DEFENDANT, THE CONTRACT OR OTHER WRITTEN INSTRUMENT ON WHICH THE ACTION
9 IS BASED SHALL BE ATTACHED TO THE COMPLAINT AND THE FOLLOWING INFORMA-
10 TION SHALL BE SET FORTH IN THE COMPLAINT:
11 1. THE NAME OF THE ORIGINAL CREDITOR;
12 2. THE LAST FOUR DIGITS OF THE ORIGINAL ACCOUNT NUMBER;
13 3. THE DATE AND AMOUNT OF THE LAST PAYMENT;
14 4. IF THE COMPLAINT CONTAINS A CAUSE OF ACTION BASED ON AN ACCOUNT
15 STATED, THE DATE THAT THE FINAL STATEMENT OF ACCOUNT WAS MAILED TO THE
16 DEFENDANT;
17 5. AN ITEMIZATION OF THE AMOUNT SOUGHT, BY (I) PRINCIPAL; (II) FINANCE
18 CHARGE OR CHARGES; (III) FEES IMPOSED BY THE ORIGINAL CREDITOR; (IV)
19 COLLECTION COSTS; (V) ATTORNEY'S FEES; (VI) INTEREST; AND (VII) ANY
20 OTHER FEES AND CHARGES. THE TERM "FINANCE CHARGE" MEANS A FINANCE CHARGE
21 AS DEFINED IN REGULATION Z, 12 C.F.R. S 226.4.
22 6. WHETHER THE PLAINTIFF IS THE ORIGINAL CREDITOR. IF THE PLAINTIFF IS
23 NOT THE ORIGINAL CREDITOR, THE COMPLAINT SHALL STATE (I) THE DATE ON
24 WHICH THE DEBT WAS ASSIGNED TO THE PLAINTIFF; AND (II) THE NAME OF EACH
25 PREVIOUS OWNER OF THE ACCOUNT AND THE DATE ON WHICH THE DEBT WAS
26 ASSIGNED TO THAT OWNER.
27 7. ANY MATTERS REQUIRED TO BE STATED WITH PARTICULARITY PURSUANT TO
28 RULE 3015 OF THIS ARTICLE.
29 S 7. Subdivision (e) of rule 3211 of the civil practice law and rules,
30 as amended by chapter 616 of the laws of 2005, is amended to read as
31 follows:
32 (e) Number, time and waiver of objections; motion to plead over. At
33 any time before service of the responsive pleading is required, a party
34 may move on one or more of the grounds set forth in subdivision (a) OF
35 THIS RULE, and no more than one such motion shall be permitted. Any
36 objection or defense based upon a ground set forth in paragraphs one,
37 three, four, five and six of subdivision (a) OF THIS RULE is waived
38 unless raised either by such motion or in the responsive pleading. A
39 motion based upon a ground specified in paragraph two, seven or ten of
40 subdivision (a) OF THIS RULE may be made at any subsequent time or in a
41 later pleading, if one is permitted; IN ANY ACTION OTHER THAN AN ACTION
42 ARISING OUT OF A CONSUMER CREDIT TRANSACTION WHERE A PURCHASER, BORROWER
43 OR DEBTOR IS A DEFENDANT, an objection that the summons and complaint,
44 summons with notice, or notice of petition and petition was not properly
45 served is waived if, having raised such an objection in a pleading, the
46 objecting party does not move for judgment on that ground within sixty
47 days after serving the pleading, unless the court extends the time upon
48 the ground of undue hardship. The foregoing sentence shall not apply in
49 any proceeding under subdivision one or two of section seven hundred
50 eleven of the real property actions and proceedings law. The papers in
51 opposition to a motion based on improper service shall contain a copy of
52 the proof of service, whether or not previously filed. An objection
53 based upon a ground specified in paragraph eight or nine of subdivision
54 (a) OF THIS RULE is waived if a party moves on any of the grounds set
55 forth in subdivision (a) OF THIS RULE without raising such objection or
A. 9206 4
1 if, having made no objection under subdivision (a) OF THIS RULE, he or
2 she does not raise such objection in the responsive pleading.
3 S 8. Subdivision (f) of section 3215 of the civil practice law and
4 rules, as amended by chapter 453 of the laws of 2006, is amended and a
5 new subdivision (j) is added to read as follows:
6 (f) Proof. On any application for judgment by default, the applicant
7 shall file proof of service of the summons and the complaint, or a
8 summons and notice served pursuant to subdivision (b) of rule 305 or
9 subdivision (a) of rule 316 of this chapter, and proof of the facts
10 constituting the claim, the default and the amount due by affidavit made
11 by the party, or where the state of New York is the plaintiff, by affi-
12 davit made by an attorney from the office of the attorney general who
13 has or obtains knowledge of such facts through review of state records
14 or otherwise. Where a verified complaint has been served, it may be used
15 as the affidavit of the facts constituting the claim and the amount due;
16 in such case, an affidavit as to the default shall be made by the party
17 or the party's attorney. IN AN ACTION ARISING OUT OF A CONSUMER CREDIT
18 TRANSACTION, IF THE PLAINTIFF IS NOT THE ORIGINAL CREDITOR, THE APPLI-
19 CANT SHALL INCLUDE: (I) AN AFFIDAVIT BY THE ORIGINAL CREDITOR OF THE
20 FACTS CONSTITUTING THE DEBT, THE DEFAULT IN PAYMENT, THE SALE OR ASSIGN-
21 MENT OF THE DEBT, AND THE AMOUNT DUE AT THE TIME OF SALE OR ASSIGNMENT;
22 (II) FOR EACH SUBSEQUENT ASSIGNMENT OR SALE OF THE DEBT TO ANOTHER ENTI-
23 TY, AN AFFIDAVIT OF SALE OF THE DEBT BY THE DEBT SELLER, COMPLETED BY
24 THE SELLER OR ASSIGNOR; AND (III) AN AFFIDAVIT OF A WITNESS OF THE
25 PLAINTIFF, WHICH INCLUDES A CHAIN OF TITLE OF THE DEBT, COMPLETED BY THE
26 PLAINTIFF OR PLAINTIFF'S WITNESS. When jurisdiction is based on an
27 attachment of property, the affidavit must state that an order of
28 attachment granted in the action has been levied on the property of the
29 defendant, describe the property and state its value. Proof of mailing
30 the notice required by subdivision (g) of this section, where applica-
31 ble, shall also be filed.
32 (J) A REQUEST FOR A DEFAULT JUDGMENT ENTERED BY THE CLERK, MUST BE
33 ACCOMPANIED BY AN AFFIDAVIT BY THE DEBT COLLECTOR (WHO MAY BE THE PLAIN-
34 TIFF OR PLAINTIFF'S ATTORNEY) STATING THAT AFTER REASONABLE INQUIRY, HE
35 OR SHE HAS REASON TO BELIEVE THAT THE STATUTE OF LIMITATIONS HAS NOT
36 EXPIRED.
37 S 9. The civil practice law and rules is amended by adding a new
38 section 7515 to read as follows:
39 S 7515. CONFIRMATION OF AN AWARD BASED ON A CONSUMER CREDIT TRANS-
40 ACTION. IN ANY PROCEEDING UNDER SECTION 7510 OF THIS ARTICLE TO CONFIRM
41 AN AWARD BASED ON A CONSUMER CREDIT TRANSACTION, THE PARTY SEEKING TO
42 CONFIRM THE AWARD SHALL PLEAD THE ACTUAL TERMS AND CONDITIONS OF THE
43 AGREEMENT TO ARBITRATE. THE PARTY SHALL ATTACH TO ITS PETITION (1) THE
44 AGREEMENT TO ARBITRATE; (2) THE DEMAND FOR ARBITRATION OR NOTICE OF
45 INTENTION TO ARBITRATE, WITH PROOF OF SERVICE; AND (3) THE ARBITRATION
46 AWARD, WITH PROOF OF SERVICE. IF THE AWARD DOES NOT CONTAIN A STATEMENT
47 OF THE CLAIMS SUBMITTED FOR ARBITRATION, OF THE CLAIMS RULED UPON BY THE
48 ARBITRATOR, AND OF THE CALCULATION OF FIGURES USED BY THE ARBITRATOR IN
49 ARRIVING AT THE AWARD, THEN THE PETITION SHALL CONTAIN SUCH A STATEMENT.
50 THE COURT SHALL NOT GRANT CONFIRMATION OF AN AWARD BASED ON A CONSUMER
51 CREDIT TRANSACTION UNLESS THE PARTY SEEKING TO CONFIRM THE AWARD HAS
52 COMPLIED WITH THIS SECTION.
53 S 10. The general business law is amended by adding a new section
54 601-a to read as follows:
55 S 601-A. DEBT COLLECTION NOTICE TO CONSUMERS. 1. AS USED IN THIS
56 SECTION, THE FOLLOWING TERM SHALL HAVE THE FOLLOWING MEANING:
A. 9206 5
1 "DEBT COLLECTION AGENCY" SHALL MEAN A PERSON, FIRM OR CORPORATION
2 ENGAGED IN BUSINESS, THE PRINCIPAL PURPOSE OF WHICH IS TO REGULARLY
3 COLLECT OR ATTEMPT TO COLLECT DEBTS: (I) OWED OR DUE OR ASSERTED TO BE
4 OWED OR DUE TO ANOTHER; OR (II) OBTAINED BY, OR ASSIGNED TO, SUCH
5 PERSON, FIRM OR CORPORATION, THAT ARE IN DEFAULT WHEN OBTAINED OR
6 ACQUIRED BY SUCH PERSON, FIRM OR CORPORATION.
7 THE TERM DOES NOT INCLUDE: (I) ANY OFFICER OR EMPLOYEE OF A CREDITOR
8 WHILE, IN THE NAME OF THE CREDITOR, COLLECTING DEBTS FOR SUCH CREDITOR;
9 (II) ANY PERSON WHILE ACTING AS A DEBT COLLECTION AGENCY FOR ANOTHER
10 PERSON, BOTH OF WHOM ARE RELATED BY COMMON OWNERSHIP OR AFFILIATED BY
11 CORPORATE CONTROL, IF THE PERSON ACTING AS A DEBT COLLECTION AGENCY DOES
12 SO ONLY FOR PERSONS TO WHOM IT IS SO RELATED OR AFFILIATED AND IF THE
13 PRINCIPAL BUSINESS OF SUCH PERSON IS NOT THE COLLECTION OF DEBTS;
14 (III) ANY PERSON WHILE SERVING OR ATTEMPTING TO SERVE LEGAL PROCESS ON
15 ANY OTHER PERSON IN CONNECTION WITH THE JUDICIAL ENFORCEMENT OF ANY
16 DEBT;
17 (IV) ANY ATTORNEY-AT-LAW OR LAW FIRM COLLECTING A DEBT IN SUCH CAPACI-
18 TY ON BEHALF OF AND IN THE NAME OF A CLIENT THROUGH LEGAL ACTIVITIES
19 SUCH AS THE FILING AND PROSECUTION OF LAWSUITS TO REDUCE DEBTS TO JUDG-
20 MENTS, BUT NOT ANY ATTORNEY-AT-LAW OR LAW FIRM WHO REGULARLY ENGAGES IN
21 ACTIVITIES TRADITIONALLY ASSOCIATED WITH DEBT COLLECTION, INCLUDING BUT
22 NOT LIMITED TO, SENDING DEMAND LETTERS OR MAKING COLLECTION TELEPHONE
23 CALLS;
24 (V) ANY PERSON EMPLOYED BY A UTILITY REGULATED UNDER THE PROVISIONS OF
25 THE PUBLIC SERVICE LAW, ACTING FOR SUCH UTILITY;
26 (VI) ANY PERSON COLLECTING OR ATTEMPTING TO COLLECT ANY DEBT OWED OR
27 DUE OR ASSERTED TO BE OWED OR DUE ANOTHER TO THE EXTENT SUCH ACTIVITY;
28 (A) IS INCIDENTAL TO A BONA FIDE FIDUCIARY OBLIGATION OR A BONA FIDE
29 ESCROW AGREEMENT; (B) CONCERNS A DEBT WHICH WAS ORIGINATED BY SUCH
30 PERSON; OR (C) CONCERNS A DEBT WHICH WAS NOT IN DEFAULT AT THE TIME IT
31 WAS OBTAINED BY SUCH PERSON AS A SECURED PARTY IN A COMMERCIAL CREDIT
32 TRANSACTION INVOLVING THE CREDITOR;
33 (VII) ANY OFFICER OR EMPLOYEE OF THE UNITED STATES, ANY STATE THEREOF
34 OR ANY POLITICAL SUBDIVISION OF ANY STATE TO THE EXTENT THAT COLLECTING
35 OR ATTEMPTING TO COLLECT ANY DEBT OWED IS IN THE PERFORMANCE OF HIS OR
36 HER OFFICIAL DUTIES; OR
37 (VIII) ANY NON-PROFIT ORGANIZATION WHICH, AT THE REQUEST OF CONSUMERS,
38 PERFORMS BONA FIDE CONSUMER CREDIT COUNSELING AND ASSISTS CUSTOMERS IN
39 THE LIQUIDATION OF THEIR DEBTS BY RECEIVING PAYMENTS FROM SUCH CUSTOMERS
40 AND DISTRIBUTING SUCH AMOUNTS TO CREDITORS.
41 2. EACH AND EVERY DEBT COLLECTION AGENCY SHALL INCLUDE IN EACH INITIAL
42 CORRESPONDENCE ON A PAST DUE DEBT TO A DEBTOR A CLEAR AND CONSPICUOUS
43 WRITTEN STATEMENT OF AT LEAST THE FOLLOWING ITEMS, IN SUBSTANTIALLY THE
44 FOLLOWING FORM, TO BE CLEARLY AND CONSPICUOUSLY LABELED "DEBTOR'S BILL
45 OF RIGHTS":
46 DEBTOR'S BILL OF RIGHTS
47 AS A DEBTOR WHO OWES OR MAY OWE A CONSUMER CLAIM, YOU ARE GIVEN SOME
48 PROTECTION AND RIGHTS BY THE NEW YORK AND FEDERAL LAWS REGULATING DEBT
49 COLLECTION PROCEDURES. YOU SHOULD BE AWARE OF YOUR RIGHTS AND NOT
50 PERMIT YOUR RIGHTS TO BE VIOLATED. SOME, NOT ALL, OF THE MORE IMPORTANT
51 PROTECTIONS ARE HIGHLIGHTED BELOW.
52 1. A DEBT COLLECTOR MAY CONTACT YOU OR ANY MEMBER OF YOUR FAMILY OR
53 HOUSEHOLD DIRECTLY. HOWEVER, THEY MAY NOT CONTACT YOU WITH SUCH FREQUEN-
54 CY, AT UNUSUAL HOURS, OR IN A MANNER THAT CAN BE EXPECTED TO ABUSE OR
55 HARASS YOU. THEY ALSO CANNOT THREATEN ACTION WHICH THEY DO NOT TAKE IN
56 THE USUAL COURSE OF BUSINESS.
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1 2. A DEBT COLLECTOR MAY NOT THREATEN TO CONTACT YOUR EMPLOYER REGARD-
2 ING A DEBT PRIOR TO OBTAINING A FINAL JUDGMENT AGAINST YOU. HOWEVER, A
3 DEBT COLLECTOR MAY CONTACT YOUR EMPLOYER TO EXECUTE A WAGE ASSIGNMENT
4 AGREEMENT IF YOU, THE DEBTOR, HAVE AGREED TO THE ASSIGNMENT.
5 3. A DEBT COLLECTOR CANNOT USE A COMMUNICATION WHICH APPEARS TO BE
6 AUTHORIZED, ISSUED, OR APPROVED BY A GOVERNMENT AGENCY OR ATTORNEY WHEN
7 IT IS NOT.
8 4. A DEBT COLLECTOR CANNOT DISCLOSE OR THREATEN TO DISCLOSE INFORMA-
9 TION AFFECTING YOUR REPUTATION FOR CREDITWORTHINESS IF THE COLLECTOR
10 KNOWS OR HAS REASON TO KNOW THE INFORMATION IS FALSE. A DEBT COLLECTOR
11 ALSO CANNOT ATTEMPT OR THREATEN TO ENFORCE A RIGHT WHEN IT KNOWS OR HAS
12 REASON TO KNOW THE RIGHT DOES NOT EXIST.
13 FOR MORE INFORMATION ABOUT YOUR RIGHTS UNDER STATE AND FEDERAL DEBT
14 COLLECTION PROCEDURES LAW, CONTACT THE CONSUMER PROTECTION DIVISION OF
15 THE NEW YORK STATE DEPARTMENT OF STATE AT (INSERT THE CURRENT TELEPHONE
16 NUMBER ESTABLISHED BY THE CONSUMER PROTECTION DIVISION FOR RECEIVING
17 INQUIRIES FROM CONSUMERS) OR (INSERT THE CURRENT ADDRESS OF THE WEBSITE
18 OR WEBPAGE CREATED PURSUANT TO PARAGRAPH (P) OF SUBDIVISION THREE OF
19 SECTION NINETY-FOUR-A OF THE EXECUTIVE LAW). YOU MAY ALSO CONTACT THE
20 NEW YORK STATE ATTORNEY GENERAL AT (INSERT THE CURRENT TELEPHONE NUMBER
21 ESTABLISHED BY THE DEPARTMENT OF LAW FOR RECEIVING INQUIRIES FROM
22 CONSUMERS) OR (INSERT THE CURRENT ADDRESS OF THE WEBSITE OF THE DEPART-
23 MENT OF LAW).
24 THE NOTICE REQUIRED BY THIS SUBDIVISION SHALL BE PRINTED OR WRITTEN IN
25 AT LEAST TEN POINT BOLD TYPE.
26 S 11. Subdivision 1 of section 602 of the general business law, as
27 added by chapter 753 of the laws of 1973, is amended to read as follows:
28 1. Except as otherwise provided by law, any person who [shall violate]
29 VIOLATES the terms OF SECTION SIX HUNDRED ONE of this article [shall be]
30 IS guilty of a misdemeanor, and each such violation shall be deemed a
31 separate offense. A VIOLATION BY ANY PERSON OF SECTION SIX HUNDRED ONE-A
32 OF THIS ARTICLE, IF SUCH VIOLATION CONSTITUTES THE FIRST SUCH OFFENSE BY
33 SUCH PERSON, IS PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED TWO HUNDRED
34 FIFTY DOLLARS. THE SECOND OFFENSE AND ANY OFFENSE COMMITTED THEREAFTER
35 ARE PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS.
36 S 12. Subdivision 3 of section 94-a of the executive law, as added by
37 section 21 of part A of chapter 62 of the laws of 2011, is amended to
38 read as follows:
39 3. Powers of the consumer protection division. [(a)] The division
40 shall have the power and duty to:
41 [(1)] (A) receive complaints of consumers, attempt to mediate such
42 complaints where appropriate, and refer complaints to the appropriate
43 unit of the department, or federal, state or local agency authorized by
44 law for appropriate action on such complaints;
45 [(2)] (B) coordinate the activities of all state agencies performing
46 consumer protection functions;
47 [(3)] (C) initiate and encourage consumer education programs;
48 [(4)] (D) conduct investigations, research, studies and analyses of
49 matters affecting the interests of consumers;
50 [(5)] (E) cooperate with and assist the attorney general and the
51 department of financial services in the carrying out of legal enforce-
52 ment responsibilities for the protection of consumers;
53 [(6)] (F) implement other powers and duties by regulation and other-
54 wise as prescribed by any provision of law;
55 [(7) (i)] (G) (1) advise and make recommendations to the governor on
56 matters affecting the consumers of the state and promote and encourage
A. 9206 7
1 the protection of the legitimate interests of consumers within the
2 state;
3 [(ii)] (2) study the operation of consumer protection laws and recom-
4 mend to the governor new laws and amendments of laws for consumer
5 protection;
6 [(8)] (H) represent the interests of consumers of the state before
7 federal, state and local administrative and regulatory agencies;
8 [(9)] (I) establish a process by which victims of identity theft will
9 receive assistance and information to resolve complaints. To implement
10 the process the secretary shall have the authority to:
11 [(i)] (1) promulgate rules and regulations to administer the identity
12 theft prevention and mitigation program; and
13 [(ii)] (2) act as a liaison between the victim and any state agency,
14 public authority, or any municipal department or agency, the division of
15 state police, and county or municipal police departments, and any non-
16 governmental entity, including but not limited to, consumer credit
17 reporting agencies, to facilitate the victim obtaining such assistance
18 and data as will enable the program to carry out its duties to help
19 consumers resolve the problems that have resulted from the identity
20 theft. Trade secrets and proprietary business information contained in
21 the documents or records that may be received by the division shall be
22 exempt from disclosure to the extent allowed by article six of the
23 public officers law;
24 [(10)] (J) undertake activities to encourage business and industry to
25 maintain high standards of honesty, fair business practices, and public
26 responsibility in the production, promotion and sale of consumer goods
27 and services;
28 [(11)] (K) conduct product research and testing and, where appropri-
29 ate, contract with private agencies and firms for the performance of
30 such services;
31 [(12)] (L) cooperate with and assist local governments in the develop-
32 ment of consumer protection activities;
33 [(13)] (M) establish advisory councils to assist in policy formulation
34 on specific consumer problems;
35 [(14)] (N) cooperate with and assist consumers in class actions in
36 proper cases; [and
37 (15)] (O) create an internet website or webpage pursuant to section
38 three hundred ninety-c of the general business law[.]; AND
39 (P) ESTABLISH A WEBSITE OR WEBPAGE THAT INCLUDES, BUT IS NOT LIMITED
40 TO, INFORMATION REGARDING THE PROTECTION AND RIGHTS AFFORDED TO CONSUM-
41 ERS UNDER STATE AND FEDERAL LAWS REGULATING DEBT COLLECTION PROCEDURES,
42 A SAMPLE INITIAL DEBT COLLECTION DISPUTE LETTER, A SAMPLE DEBT
43 COLLECTION CEASE AND DESIST LETTER, AND THE CURRENT CONTACT INFORMATION
44 FOR THE ATTORNEY GENERAL AND THE FEDERAL TRADE COMMISSION.
45 S 13. This act shall take effect on the first of January next succeed-
46 ing the date on which it shall have become a law, except that section
47 three of this act shall take effect on the one hundred eightieth day
48 after this act shall have become a law.
