BILL NO A01369
SAME AS SAME AS S05419
SPONSOR Cahill (MS)
COSPNSR Clark
MLTSPNSR Curran, Englebright, Hooper, Magee
Add S518-b, Gen Bus L
Provides that any charges assessed by a credit card company for late payment
shall not exceed five percent of the unpaid balance of any bill, including any
interest thereon, or twenty dollars, whichever amount is less.
BILL NUMBER:A1369
TITLE OF BILL: An act to amend the general business law, in relation to
credit card late charges
PURPOSE OR GENERAL IDEA OF BILL: This legislation provides that any
charges assessed by a credit card company for late payment will not
exceed 5% of the unpaid balance of any bill or twenty dollars, whichever
is less.
SUMMARY OF SPECIFIC PROVISIONS: This bill adds a new section 518-b to
the general business law to carry out the above provision.
EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: Existing business
law does not provide limits on credit card late charges.
JUSTIFICATION: This legislation is introduced in response to an
increasing reliance the bank industry has placed on the use of charges
of this nature to supplement revenue. In some cases, late fees can
amount to as much as a 350% increase in an overall balance. This prac-
tice is predatory in the sense that it further restricts payment options
for certain individuals, setting into motion a cycle of continuous debt
to the benefit of the industry and the detriment of the customer.
PRIOR LEGISLATIVE HISTORY:
2011-2012 A1009 Referred to Banks 2009-2010 A487 Referred to Banks
2007-2008 A7715 Referred to Banks
2005-2006 A5639 Referred to Consumer Affairs and Protection
2003-2004 A205 Referred to Consumer Affairs and Protection
2001-2002 Referred to Consumer Affairs and Protection
2000 Referred to Consumer Affairs and Protection
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the 90th day after it
shall have become law.
