Relates to establishing a set grace period for the use of credit card reward points when an account is modified, cancelled, closed or terminated; ninety days shall be provided for the use of such points from the date notice of modification, cancellation, or termination of the card is provided.
STATE OF NEW YORK
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7104--A
IN SENATE(Prefiled)
January 8, 2020
___________
Introduced by Sens. MAYER, JACKSON, KRUEGER, MYRIE, SALAZAR -- read
twice and ordered printed, and when printed to be committed to the
Committee on Consumer Protection -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the general business law, in relation to establishing a
set grace period for the use of credit card reward points
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
2 520-e to read as follows:
3 § 520-e. Grace period for use of credit card reward points. 1. As used
4 in this section, the following terms shall have the following meanings:
5 (a) "credit card points" or "points" shall mean denominated units that
6 can be accumulated in an account in connection with a credit card
7 reward, loyalty, or other incentive program, often referred to as points
8 or for certain travel-related rewards as miles, which are redeemable,
9 fungible, or otherwise exchangeable, in whole or in part, for rewards;
10 (b) "rewards" shall mean goods, services, cash, merchant-specific gift
11 cards, travel benefits, or one or more other things of value; and
12 (c) "rewards program" shall mean any agreement between a holder and an
13 issuer regarding points related to an account.
14 2. If any credit card account or rewards program is modified,
15 cancelled, closed or terminated, the holder must receive notice from the
16 issuer of such cancellation, closure, termination or modification as
17 soon as possible, and in any event within fifteen days of such cancella-
18 tion, closure, termination or modification. Beginning with the date on
19 which notice is sent, the holder shall have ninety days to redeem,
20 exchange, or otherwise use any credit card points that the holder accu-
21 mulated at the time of such modification, cancellation, closure, or
22 termination as permitted under the terms of the agreement or agreements
23 between the holder and the issuer which is servicing the applicable
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14416-04-0
S. 7104--A 2
1 credit card account or related rewards program, subject to the avail-
2 ability of rewards.
3 3. It shall be unlawful for any agreement between an issuer and a
4 holder, or any rewards program, to provide for the expiration of credit
5 card points.
6 4. The provisions of subdivision two of this section shall not apply
7 in the case of fraud by the holder with respect to the credit card
8 account or any related rewards program, or misuse by the holder of the
9 credit card account or any related rewards program.
10 5. Any agreement entered into by a holder that waives, limits or
11 disclaims the rights set forth in this section shall be void as contrary
12 to public policy.
13 § 2. This act shall take effect one year after it shall have become a
14 law.
