Bill Text: NY A09588 | 2019-2020 | General Assembly | Amended

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Bill Title: Relates to establishing a set grace period for the use of credit card reward points when an account is modified, cancelled, closed or terminated; ninety days shall be provided for the use of such points from the date notice of modification, cancellation, or termination of the card is provided.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-09-09 - print number 9588a [A09588 Detail]

Download: New_York-2019-A09588-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9588--A

                   IN ASSEMBLY

                                    January 27, 2020
                                       ___________

        Introduced  by  M.  of  A.  DenDEKKER  --  read once and referred to the
          Committee on Consumer Affairs and Protection -- committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee

        AN ACT to amend the general business law, in relation to establishing  a
          set grace period for the use of credit card reward points

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

     1    Section 1. The general business law is amended by adding a new section
     2  520-e to read as follows:
     3    § 520-e. Grace period for use of credit card reward points. 1. As used
     4  in this section, the following terms shall have the following meanings:
     5    (a) "credit card points" or "points" shall mean denominated units that
     6  can be accumulated in an  account  in  connection  with  a  credit  card
     7  reward, loyalty, or other incentive program, often referred to as points
     8  or  for  certain  travel-related rewards as miles, which are redeemable,
     9  fungible, or otherwise exchangeable, in whole or in part, for rewards;
    10    (b) "rewards" shall mean goods, services, cash, merchant-specific gift
    11  cards, travel benefits, or one or more other things of value; and
    12    (c) "rewards program" shall mean any agreement between a holder and an
    13  issuer regarding points related to an account.
    14    2. If  any  credit  card  account  or  rewards  program  is  modified,
    15  cancelled, closed or terminated, the holder must receive notice from the
    16  issuer  of  such  cancellation,  closure, termination or modification as
    17  soon as possible, and in any event within fifteen days of such cancella-
    18  tion, closure, termination or modification. Beginning with the  date  on
    19  which  notice  is  sent,  the  holder  shall have ninety days to redeem,
    20  exchange, or otherwise use any credit card points that the holder  accu-
    21  mulated  at  the  time  of  such modification, cancellation, closure, or
    22  termination as permitted under the terms of the agreement or  agreements
    23  between  the  holder  and  the  issuer which is servicing the applicable
    24  credit card account or related rewards program, subject  to  the  avail-
    25  ability of rewards.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14416-05-0
        A. 9588--A                          2

     1    3.  It  shall  be  unlawful  for any agreement between an issuer and a
     2  holder, or any rewards program, to provide for the expiration of  credit
     3  card points.
     4    4.  The  provisions of subdivision two of this section shall not apply
     5  in the case of fraud by the holder  with  respect  to  the  credit  card
     6  account  or  any related rewards program, or misuse by the holder of the
     7  credit card account or any related rewards program.
     8    5. Any agreement entered into by  a  holder  that  waives,  limits  or
     9  disclaims the rights set forth in this section shall be void as contrary
    10  to public policy.
    11    §  2. This act shall take effect one year after it shall have become a
    12  law.