Prohibits the issuer of a credit card from increasing the rate of interest or imposing a fee on the account of a holder who has made timely payments and in the minimum amounts required, based on such holder's indebtedness or failure to make timely payments to another creditor; provides that violation of such prohibition shall constitute a misdemeanor.
STATE OF NEW YORK
________________________________________________________________________
4633
2011-2012 Regular Sessions
IN ASSEMBLY
February 4, 2011
___________
Introduced by M. of A. P. RIVERA, PHEFFER, BOYLAND, JAFFEE, ROSENTHAL,
CASTRO, DESTITO, CAMARA, GABRYSZAK, PERRY, GUNTHER, JACOBS, P. LOPEZ,
TITUS, SPANO, MAGEE, DenDEKKER, LANCMAN, RUSSELL, SCARBOROUGH, MAISEL,
JEFFRIES, MENG, LIFTON, ENGLEBRIGHT -- Multi-Sponsored by -- M. of A.
ARROYO, BENEDETTO, BRENNAN, BROOK-KRASNY, BURLING, CLARK, COLTON,
COOK, CROUCH, FARRELL, GALEF, GIGLIO, HIKIND, V. LOPEZ, MARKEY, McDO-
NOUGH, McENENY, MILLMAN, O'DONNELL, ORTIZ, PEOPLES-STOKES, RAIA, REIL-
LY, J. RIVERA, N. RIVERA, ROBINSON, SWEENEY, THIELE, TOBACCO, TOWNS,
WEISENBERG, WRIGHT, ZEBROWSKI -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting
issuers of credit cards from increasing the rate of interest imposed
upon outstanding balance based upon a holder's indebtedness or late
payments to other creditors
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
2 515-a to read as follows:
3 § 515-a. Increasing rate of interest or imposition of fees for indebt-
4 edness to other creditors. 1. No issuer shall increase the rate of
5 interest upon the account of the holder or impose a fee upon the
6 outstanding balance owed by a holder when the increased rate of interest
7 or the imposition of a fee is solely the result of the holder's indebt-
8 edness or failure to make timely payments to any other creditor or cred-
9 itors.
10 2. A violation of subdivision one of this section shall constitute a
11 misdemeanor.
12 § 2. This act shall take effect on the first day of the calendar month
13 which commences next succeeding the date on which it shall have become a
14 law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00125-01-1
