STATE OF NEW YORK
________________________________________________________________________
6875--B
2011-2012 Regular Sessions
IN ASSEMBLY
April 5, 2011
___________
Introduced by M. of A. LENTOL, SCHROEDER, LUPARDO, CERETTO, P. LOPEZ,
ZEBROWSKI -- Multi-Sponsored by -- M. of A. McENENY, RA -- read once
and referred to the Committee on Codes -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- reported and referred to the Committee on Rules -- Rules
Committee discharged, bill amended, ordered reprinted as amended and
recommitted to the Committee on Rules
AN ACT to amend the civil practice law and rules and the general busi-
ness law, in relation to prohibited debt collection practices
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (i) of paragraph 3 of subdivision (a) of rule
2 5224 of the civil practice law and rules, as amended by chapter 452 of
3 the laws of 2006, the opening paragraph as amended by chapter 552 of the
4 laws of 2006, is amended to read as follows:
5 (i) information subpoenas, served on an individual or entity other
6 than the judgment debtor, may be served on an individual, corporation,
7 partnership or sole proprietorship only if the judgment creditor or the
8 judgment creditor's attorney has a reasonable belief that the party
9 receiving the subpoena has in their possession information about the
10 debtor that will assist the creditor in collecting his or her judgment.
11 Any information subpoena served pursuant to this subparagraph shall
12 contain a certification signed by the judgment creditor or his or her
13 attorney stating the following: I HEREBY CERTIFY THAT THIS INFORMATION
14 SUBPOENA COMPLIES WITH RULE 5224 OF THE CIVIL PRACTICE LAW AND RULES AND
15 SECTION 601 OF THE GENERAL BUSINESS LAW THAT I HAVE A REASONABLE BELIEF
16 THAT THE PARTY RECEIVING THIS SUBPOENA HAS IN THEIR POSSESSION INFORMA-
17 TION ABOUT THE DEBTOR THAT WILL ASSIST THE CREDITOR IN COLLECTING THE
18 JUDGMENT. By signing the certification, the judgment creditor or attor-
19 ney certifies that, to the best of that person's knowledge, information
20 and belief, formed after an inquiry reasonable under the circumstances,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10417-06-1
A. 6875--B 2
1 that the individual or entity receiving the subpoena has relevant infor-
2 mation about the debtor.
3 § 2. Subdivision 9 of section 601 of the general business law, as
4 added by chapter 753 of the laws of 1973, is amended and a new subdivi-
5 sion 10 is added to read as follows:
6 9. Use a communication which simulates in any manner legal or judicial
7 process or which gives the appearance of being authorized, issued or
8 approved by a government, governmental agency, or attorney at law when
9 it is not[.]; or
10 10. If such principal creditor or agent sends more than fifty informa-
11 tion subpoenas per month, fail to keep complete records concerning all
12 information subpoenas sent by such principal creditor or agent. Such
13 records shall be maintained for five years. Contemporaneous records
14 shall be kept that set forth with specificity the grounds for such
15 principal creditor or agent's reasonable belief, which must be certified
16 and accompany each information subpoena pursuant to rule fifty-two
17 hundred twenty-four of the civil practice law and rules, that the party
18 receiving the subpoena has in its possession information about the
19 debtor that will assist the creditor in collecting his or her judgement.
20 In addition to any other penalty that my be imposed, failure to maintain
21 records in accordance with this subdivision shall subject such principal
22 creditor or agent to a civil penalty of not more than fifty dollars per
23 subpoena, up to a maximum of five thousand dollars per violation, in an
24 action brought by the attorney general.
25 § 3. Section 602 of the general business law is amended by adding a
26 new subdivision 3 to read as follows:
27 3. Any aggrieved person or entity served with more than fifty informa-
28 tion subpoenas per month by a principal creditor or his or her agent
29 shall also have a cause of action to challenge compliance with subdivi-
30 sion ten of section six hundred one of this article and/or the certif-
31 ication requirements of rule fifty-two hundred twenty-four of the civil
32 practice law and rules. In such action, a successful plaintiff shall be
33 awarded ten dollars for each information subpoena served upon such
34 plaintiff where it is shown that the required certification for such
35 information subpoena was not made pursuant to rule fifty-two hundred
36 twenty-four of the civil practice law and rules, that the required
37 record for such information subpoena was not maintained pursuant to
38 subdivision ten of section six hundred one of this article, or that the
39 specific grounds for the certification required to accompany such infor-
40 mation subpoena pursuant to rule fifty-two hundred twenty-four of the
41 civil practice law and rules were not reasonable. A successful plaintiff
42 may also be awarded court costs and attorney fees.
43 § 4. This act shall take effect on the thirtieth day after it shall
44 have become a law and shall apply to information subpoenas served on or
45 after such date.
