Requires financial institutions to provide a consumer warning prior to completing a transfer of funds, and provides for a five hundred dollar civil penalty to be imposed for each violation.
STATE OF NEW YORK
________________________________________________________________________
7899
2011-2012 Regular Sessions
IN ASSEMBLY
May 20, 2011
___________
Introduced by M. of A. NOLAN -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to a consumer
warning about transfer of funds
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
2 399-ff to read as follows:
3 § 399-ff. Consumer warning about transfer of funds. 1. A financial
4 institution as defined in section 5-1501 of the general obligations law,
5 or any other business engaged in the wire or electronic transfer of
6 funds which, at the request of an individual who in person or by elec-
7 tronic means transfers funds to another person, business or entity,
8 shall require the person requesting the transfer to read and sign the
9 following consumer notice prior to completing a transfer of funds:
10 "Warning: Please do not fall victim to consumer fraud. Are you sending
11 money to claim lottery winnings? Are you sending money because you were
12 'guaranteed' a credit card or loan? Are you responding to an internet or
13 phone offer that you are not sure is honest? Are you sending money to
14 someone you do not know or whose identity you cannot verify? If so,
15 please ask the sales clerk or representative to stop your transfer right
16 away."
17 The notice set out in this section shall appear on the same form using
18 the same format as the form by which the person requesting the transfer
19 authorizes such transfer.
20 2. A violation of the provisions of this section shall be punishable
21 by a civil penalty of not more than five hundred dollars for each
22 violation.
23 § 2. This act shall take effect on the one hundred twentieth day after
24 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11751-01-1
