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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9588

                   IN ASSEMBLY

                                    January 27, 2020
                                       ___________

        Introduced  by  M.  of  A.  DenDEKKER  --  read once and referred to the
          Committee on Consumer Affairs and Protection

        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 or between a holder and a third-party regarding points related to
    14  an account.
    15    2. If  any  credit  card  account  or  rewards  program  is  modified,
    16  cancelled, closed or terminated, the holder must receive notice from the
    17  issuer  of  such  cancellation,  closure, termination or modification as
    18  soon as possible, and in any event within fifteen days of such cancella-
    19  tion, closure, termination or modification. Beginning with the  date  on
    20  which  notice  is  sent,  the  holder  shall have ninety days to redeem,
    21  exchange, or otherwise use any credit card points that the holder  accu-
    22  mulated  at  the  time  of  such modification, cancellation, closure, or
    23  termination as permitted under the terms of the agreement or  agreements
    24  between  the  holder  and the issuer, and the holder and any third-party
    25  which is servicing the applicable credit card account or related rewards
    26  program, subject to the availability of rewards.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14416-03-9
        A. 9588                             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.