BILL NO S03317
SAME AS No same as
Add S601-a, amd S600, Gen Bus L
Requires disclosure by principal creditors and debt collection agencies of the
legal obligations of a deceased debtor's family; requires such disclosure be
both verbal and written.
S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
January 31, 2013
Introduced by Sens. HASSELL-THOMPSON, KRUEGER -- read twice and ordered
printed, and when printed to be committed to the Committee on Consumer
AN ACT to amend the general business law, in relation to disclosure by
principal creditors and debt collection agencies of the legal obli-
gations of a deceased debtor's family and household members
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
2 601-a to read as follows:
3 S 601-A. DISCLOSURE BY PRINCIPAL CREDITORS AND/OR DEBT COLLECTION
4 AGENCIES. 1. ALL PRINCIPAL CREDITORS AND/OR DEBT COLLECTION AGENCIES
5 SHALL DISCLOSE TO ANY RELATIVE OR HOUSEHOLD MEMBER OF A DECEASED DEBTOR
6 THAT IS CONTACTED THAT HE OR SHE MAY NOT BE LEGALLY REQUIRED TO REPAY
7 SUCH DECEASED DEBTOR'S DEBTS. IN ADDITION, THE PRINCIPAL CREDITORS
8 AND/OR DEBT COLLECTION AGENCIES SHALL NOT MAKE ANY MISREPRESENTATION
9 ABOUT THE FAMILY MEMBER'S OBLIGATION TO PAY SUCH DEBTS.
10 2. DISCLOSURE REQUIRED UNDER SUBDIVISION ONE OF THIS SECTION SHALL BE
11 MADE BOTH ORALLY AND IN WRITING.
12 3. IN ADDITION TO ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
13 PURSUANT TO THIS ARTICLE, ANY AGGRIEVED PERSON MAY BRING AN ACTION TO
14 ENJOIN SUCH UNLAWFUL PRACTICE AND TO RECOVER A CIVIL PENALTY OF FIVE
15 THOUSAND DOLLARS FOR EACH VIOLATION, TOGETHER WITH ANY ACTUAL DAMAGES.
16 THE COURT SHALL AWARD REASONABLE ATTORNEY FEES AND COSTS TO A PREVAILING
17 PLAINTIFF. FOR PURPOSES OF THIS SECTION, EACH COMMUNICATION THAT FAILS
18 TO COMPLY WITH THIS SECTION SHALL CONSTITUTE A SEPARATE VIOLATION. CLASS
19 ACTIONS TO RECOVER THE DAMAGES SET FORTH IN THIS SECTION ARE SPECIF-
20 ICALLY AUTHORIZED.
21 S 2. Section 600 of the general business law is amended by adding a
22 new subdivision 4 to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 3317 2
1 4. "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: (A) OWED OR DUE OR ASSERTED TO BE
4 OWED OR DUE TO ANOTHER; OR (B) OBTAINED BY, OR ASSIGNED TO, SUCH PERSON,
5 FIRM OR CORPORATION, THAT ARE IN DEFAULT WHEN OBTAINED OR ACQUIRED BY
6 SUCH PERSON, FIRM OR CORPORATION.
7 S 3. This act shall take effect on the ninetieth day after it shall
8 have become a law.