Pheffer Pushes for An Airline Passenger’s “Bill of Rights”

Earlier this year, the practices of the airline industry came under scrutiny when several incidents involving airline passengers detained on runways for extended periods were reported. On Valentine’s Day, passengers were held on board an airplane at John F. Kennedy Airport (JFK) for 10 hours without food, water, fresh air, or the ability to use the rest room. Several other flights were similarly stalled on the runway. On St. Patrick’s Day, passengers aboard a plane waiting for take off from JFK were stuck for more than 14 hours.

To address this issue, Assemblywoman Pheffer fought for a new law that will protect passengers who have boarded an aircraft, but have been delayed from take off for more than three hours. Under the new law, airline carriers will be required to provide electric generation for the purpose of providing fresh air and lights, waste removal services, and adequate food, drinking water and other refreshments to passengers. The law also establishes an office of airline consumer advocate within the Consumer Protection Board to assist airline customers in resolving complaints with carriers (Chapter 472 of the Laws of 2007).

Assemblywoman Pheffer meets with community and civic groups throughout the district alerting residents to Identity Theft scams and promoting better consumer awareness.

New York’s landmark Consumer Protection Law has served as a bedrock of consumer protection since its enactment over thirty years ago – granting the Attorney General broad authority to bring legal actions against businesses and individuals who engage in deceptive acts and practices. Recent examples of cases include those involving internet scams, deceptive credit card solicitations and home improvement scams.

To make these consumer protections more effective and deter the use of deceptive acts and practices, Assemblywoman Pheffer champtioned a new law increasing the maximum civil penalty from $500 to $5,000. She also sponsored a new law increasing penalties for false advertising so that a person may recover more money if he or she is injured by false advertising.

Pool Safety Measures Enacted into Law

New York State and New York City building codes require barriers around swimming pools containing certain amounts of water, and studies show these barriers reduce drowning accidents by restricting access to unattended pools. But many homeowners are unaware of this important safety requirement, and some fail to erect barriers in a timely manner following the construction of a pool. Assemblywoman Pheffer sponsored two new laws aimed at strengthening pool safety.

The first law requires pool retailers and installers to provide enhanced notice to consumers of the swimming pool barriers that are required by State or City law. It also requires the State to establish a web page summarizing the current requirements for swimming pool barriers. The other law will require temporary pool barriers to be replaced with permanent barriers within 90 days of the installation of an in-ground swimming pool.

Stopping Unfair Debt Collection Practices

Consumer complaints received by the Federal Trade Commission grew for the ninth consecutive year in 2006, and consumers filed more complaints against third-party collectors than against any other industry. That’s why Assemblywoman Pheffer advanced a comprehensive package of legislation aimed at curbing abusive and unfair debt collection practices. All of these bills passed the Assembly, but unfortunately, the Senate failed to pass any of these important measures. Assemblywoman Pheffer will continue fighting for their enactment.

Chairwoman Pheffer and Assemblyman Brodsky discuss legislation related to credit and debit card processing with affected stakeholders.

• Debtor’s Bill of Rights – requiring debt collectors to provide consumers with their rights under State law, to be sent with initial correspondence.

• Requiring debt collectors to be licensed – by the State and giving the Consumer Protection Board the authority to better oversee debt collection and strongly enforce regulations.

• Giving consumers the power to sue – for improper debt collection practices.

• Stopping unauthorized collections – by shielding consumer income like Social Security and veterans’ benefits from unscrupulous collectors.

High Tech Consumer Protections

From wireless phones that play music, to hand-held computers, to tap-and-go credit cards, new technology brings the promise of convenience and increased productivity to consumers. As technology continues to advance at breakneck speed, it is imperative that consumer protections keep pace. That is why Assemblywoman Pheffer advanced several bills to address new consumer issues raised by new technology. Four of these measures have been enacted into law.

Computers and E-Commerce

With every passing year, personal computers are becoming more of a necessity for consumers who want to participate in the modern marketplace. Those who want to purchase a computer have many options, including used and refurbished models. It has been reported that some computers and computer accessories labeled as “new” contain used and refurbished parts. To address this issue, Assemblywoman Pheffer sponsored a new law requiring that all computers manufactured or distributed with recycled, remanufactured, or rebuilt parts be labeled. Also, many consumers use their computer to purchase goods and services online. In response to this trend, Assemblywoman Pheffer sponsored a new law that will add merchandise purchased via e-mail or the Internet to New York’s current mail order merchandise law.

Wireless Network Protections

An increasing number of consumers seek access to the Internet away from home. That’s why Assemblywoman Pheffer sponsored a new law that will help New York consumers protect their privacy when using public Internet access points. This new law will require businesses that offer access to post a notice advising users to implement computer security measures. Pheffer’s committee also moved legislation aimed at protecting the privacy of residential and business wireless computer network users by requiring manufacturers of devices that contain wireless network access points to integrate privacy protections, such as pre-installed and enabled firewalls and warning stickers, into their products.

VoIP Service Safety Disclosures

Consumers now have several telephone service options to choose from, including traditional landline service, wireless service, and Voice over Internet Protocol (“VoIP”) service. However, many consumers are unaware that some VoIP services offer limited 911 capability. In order to address this issue, Assemblywoman Pheffer sponsored a new law that will require VoIP telephone service providers to inform prospective and current customers of any limitations of the 911 emergency call service.

RFID Privacy Task Force

Radio frequency identification (RFID) systems use radio waves or other wireless means to transmit the identity of an object or person from a tag or chip to a reader. This new technology has several privacy implications, including the potential for the tracking of movements of a person who possesses or handles objects containing RFID tags and the potential for hackers to obtain access to information stored on RFID-enabled consumer products, such as “tap-and-go” credit cards. In order to address this emerging privacy issue, Assemblywoman Pheffer authored a bill, passed by the Assembly, that would establish a task force to assess the various privacy issues associated with the use of RFID and determine the need for the state to regulate it to ensure personal privacy.

Subprime Mortgage Hearing

According to the Center for Responsible Lending, New York is one of eight states that are predicted to suffer the greatest impact as a result of the recent spike in foreclosures in the subprime mortgage market. Many homeowners were duped into mortgages with deceptive or questionable terms, including those with low “teaser” interest rates that increase significantly after several years and interest-only mortgages. As interest rates have risen and property values decreased, foreclosures have occurred at alarming rates and delinquencies continue to climb.

It has been estimated that over 50,000 families in New York are at risk of losing their homes by the end of 2008.

In May, the Committee on Consumer Affairs and Protection held a joint hearing along with the Committee on Banks, the Committee on Housing, the Committee on Judiciary, and the Committee on Oversight, Analysis and Investigation to gather information on subprime lending practices. Assemblywoman Pheffer received valuable testimony from the New York State Banking Department, the Center for Responsible Lending, housing and consumer advocates, legal services organizations and industry representatives. As a result of the information provided at the hearing, Assemblywoman Pheffer sponsored the New York State Responsible Lending Act of 2007. This measure would implement several consumer protections in the subprime and nontraditional home loan lending industry.

Free Trial Offers

Free trial offers can be a good deal for consumers. Some offers, however, fail to clearly disclose a consumer’s obligation to cancel during the “risk free” period. This can lead to situations where consumers are charged for goods or services they did not intend to purchase. That is why Assemblywoman Pheffer authored a new law to ensure that consumers are able to make informed decisions regarding free trial offers. This new law will require entities offering free trials to clearly and conspicuously disclose the terms of the offer, obtain the consent of the consumer to accept the offer, and provide adequate notice to consumers about the deadline to cancel a free trial offer, after which a credit card is billed.

According to the Federal Reserve Board, in 2006, the total number of debit card transactions exceeded credit card transactions. If you use a debit card, it is important to familiarize yourself with the consumer protections and rights afforded to debit cardholders under the law.

Debit card transactions are regulated by the federal Electronic Funds Transfer Act (EFTA). One of the most important rights granted to consumers under the Act involves a debit cardholder’s liability for unauthorized use of the card. Many consumers are unaware that, unlike victims of credit card fraud – who are liable for a maximum of $50 – victims of debit card fraud can be held liable for the entire fraudulent transfer if they fail to promptly notify their bank. If your debit card is lost or stolen, report it to your bank as soon as possible. If you report the loss or theft within two business days, you will only be liable for $50. However, if you notify the bank after two business days, you could be responsible for up to $500. If you fail to report a loss within 60 days, you may be liable for the entire amount of the unauthorized transfer.

Debit cardholders should also be aware of another significant difference between debit cards and credit cards. Unlike credit cards, consumers using their debit card to purchase gasoline, lodging, and rental vehicles may find that their bank has placed a “hold” on their account for an amount above the purchase price in order to ensure payment. These additional withdrawals – as high as $75 – can take several days to clear, leaving consumers at risk of drawing upon insufficient funds and bouncing checks. That is why Assemblywoman Pheffer sponsored a bill to ensure that consumers filling up at the pump are informed of this practice. This bill would require gas stations that allow customers to use a debit card to post a notice informing customers that their bank may place a hold against their account. Ask your debit card issuer about its hold policy.