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A00424 Summary:

BILL NOA00424
 
SAME ASNo Same As
 
SPONSORPerry
 
COSPNSR
 
MLTSPNSRCahill, Colton, Cook, Hooper
 
Add 518-b, Gen Bus L
 
Provides a fifteen day grace period for the imposition of late fees for credit card bills.
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A00424 Actions:

BILL NOA00424
 
01/09/2017referred to consumer affairs and protection
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A00424 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A424
 
SPONSOR: Perry (MS)
  TITLE OF BILL: An act to amend the general business law, in relation to providing a grace period for the imposition of late fees for credit card bills   PURPOSE: Provides a fifteen (15) day grace period before late charges can be assessed to credit card accounts.   SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill adds § 518-b to the general business law provid- ing a fifteen day grace period before any business in New York State can charge a late fee for a credit card account. Section two of the bill provides the effective date.   JUSTIFICATION: Many credit card issuers have reduced their grace periods giving consum- ers less time to pay their bills without incurring additional late fees and mounting finance charges. While many of these companies offer consumers access to local, online, or telephone center services to pay their bills, for many New Yorkers, payment by mail is the only option.In order for payment to be received by the due date, it must be mailed at least 7 to 10 days in advance or risk being charged late fees. This legislation would provide a 15-day grace period for credit card companies doing business in New York State. This extended time period could make a big difference to many families and residences in our State. Similarly, it could have a positive economic impact on those businesses which would receive payment on the account rather than none at all due to customers' temporary financial difficulties.   PRIOR LEGISLATIVE HISTORY: 2015-2016: A.5126 - Referred to Consumer Affairs and Protection 2013-2014: A.3423 - Referred to Consumer Affairs and Protection 2011-2012: A.3004 - Referred to Consumer Affairs and Protection 2009-2010: A.3461 - Referred to Consumer Affairs and Protection 2007-2008: A.5253 - Referred to Consumer Affairs and Protection 2005-2006: A.4700-A/S.7098 - Referred to Consumer Affairs and Protection / Consumer Protection 2003-2004: A.6919 - Referred to Consumer Affairs and Protection 2002: A.10648 - Referred to Consumer Affairs and Protection   FISCAL IMPLICATIONS: None to the state.   EFFECTIVE DATE: Thirty days after becoming a law.
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A00424 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           424
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 9, 2017
                                       ___________
 
        Introduced  by  M. of A. PERRY -- Multi-Sponsored by -- M. of A. CAHILL,
          COLTON, COOK, HOOPER -- read once and referred  to  the  Committee  on
          Consumer Affairs and Protection
 
        AN  ACT  to  amend  the general business law, in relation to providing a
          grace period for the imposition of late fees for credit card bills

          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  518-b to read as follows:
     3    §  518-b.  Credit card account late fees; fifteen day grace period. No
     4  issuer of a credit card doing business in this state shall charge a late
     5  fee to the credit card account of any person who fails to timely make  a
     6  payment on such credit card account, until at least fifteen days follow-
     7  ing the date that such payment was due.
     8    §  2.  This  act shall take effect on the thirtieth day after it shall
     9  have become a law.
 
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06335-01-7
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