Provides new debt collection requirements and administrative enforcement by the consumer protection board; requires that every notice of a past due debt sent to a debtor must separately state certain information; authorizes the consumer protection board to establish an administrative enforcement process to process debt collection complaints; authorizes the consumer protection board to access a fine per violation.
STATE OF NEW YORK
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4804
2009-2010 Regular Sessions
IN ASSEMBLY
February 6, 2009
___________
Introduced by M. of A. PHEFFER, ZEBROWSKI, LANCMAN, REILLY, MILLMAN,
KOON, GOTTFRIED, GALEF, CLARK, P. RIVERA, BENEDETTO, JAFFEE, FIELDS,
PEOPLES, KAVANAGH -- Multi-Sponsored by -- M. of A. BENJAMIN, BOYLAND,
CAHILL, DESTITO, DINOWITZ, FARRELL, HOYT, HYER-SPENCER, LIFTON,
MAISEL, MARKEY, McENENY, N. RIVERA, ROBINSON, ROSENTHAL, SWEENEY,
TITUS, TOWNS, WEISENBERG -- read once and referred to the Committee on
Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to debt collection
requirements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 600 of the general business law, as added by chap-
2 ter 753 of the laws of 1973, is amended to read as follows:
3 § 600. Definitions. As used in this article, unless the context or
4 subject matter otherwise requires:
5 1. "Board" shall mean the consumer protection board.
6 2. "Consumer claim" means any obligation of a natural person for the
7 payment of money or its equivalent which is or is alleged to be in
8 default and which arises out of a transaction wherein credit has been
9 offered or extended to a natural person, and the money, property or
10 service which was the subject of the transaction was primarily for
11 personal, family or household purposes. The term includes an obligation
12 of a natural person who is a co-maker, endorser, guarantor or surety as
13 well as the natural person to whom such credit was originally extended.
14 [2] 3. "Debtor" means any natural person who owes or who is asserted
15 to owe a consumer claim.
16 [3] 4. "Principal creditor" means any person, firm, corporation or
17 organization to whom a consumer claim is owed, due or asserted to be due
18 or owed, or any assignee for value of said person, firm, corporation or
19 organization.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08610-01-9
A. 4804 2
1 5. "Third party debt collector" shall mean any person who regularly
2 collects or attempts to collect, directly or indirectly, debts owed or
3 due or asserted to be owed or due another.
4 § 2. The general business law is amended by adding a new section 601-a
5 to read as follows:
6 § 601-a. Debt collection requirements. 1. In every notice of a past
7 due debt sent to a debtor from the principal creditor or his or her
8 agent, such notice shall separately state:
9 (a) the name, address and telephone number of the principal creditor
10 or his or her agent;
11 (b) the original amount of the debt;
12 (c) the date the debt was deemed in default;
13 (d) the accrued interest on the debt;
14 (e) a copy of the last bill or notice of collection sent from the
15 principal creditor to the debtor; and
16 (f) if applicable, a copy of the letter advising the debtor that his
17 or her debt has been sold or transferred.
18 2. Every principal creditor or his or her agent shall send a notice to
19 the last known address of the debtor advising the debtor that his or her
20 debt is being sold or transferred to an agent or third party debt
21 collector for the purpose of debt collection. A copy of this notice
22 shall also be sent to the entity or agent to whom the principal creditor
23 has agreed to sell or transfer the debt.
24 3. The board shall establish any rules and regulations necessary to
25 administer this section.
26 4. (a) Where it is determined after hearing that any person has
27 violated one or more provisions of this section, the director of the
28 board, or any person deputized or so designated by him or her, may
29 assess a fine not to exceed one thousand dollars for each violation.
30 (b) Any proceeding conducted pursuant to paragraph (a) of this subdi-
31 vision shall be subject to the state administrative procedure act.
32 (c) Nothing in this subdivision shall be construed to restrict any
33 right which any person may have under any other statute or at common
34 law.
35 § 3. Subdivision 1 of section 602 of the general business law, as
36 added by chapter 753 of the laws of 1973, is amended to read as follows:
37 1. Except as otherwise provided by law, any person who [shall violate]
38 violates the terms of section six hundred one of this article [shall be]
39 is guilty of a misdemeanor, and each such violation shall be deemed a
40 separate offense.
41 § 4. This act shall take effect on the first of January next succeed-
42 ing the date on which it shall have become a law.
