senate Bill S771

Prohibits credit card companies from accepting and processing an application that has been altered, torn and reconstructed or damaged

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 15 / Jan / 2009
    • REFERRED TO CONSUMER PROTECTION
  • 06 / Jan / 2010
    • REFERRED TO CONSUMER PROTECTION

Summary

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Bill Details

Versions:
S771
Legislative Cycle:
2009-2010
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law

Sponsor Memo

BILL NUMBER: S771

TITLE OF BILL :
An act to amend the general business law, in relation to prohibiting
credit card companies from accepting and processing an application
that has been altered, torn and reconstructed or damaged


PURPOSE :
To prohibit credit card companies from accepting and processing an
altered, torn and reconstructed or damaged application.

SUMMARY OF PROVISIONS :
Section 1: Section 520 of the general business law is amended by
adding new subdivision 10 which provides that no credit card company
shall accept and process an application that has been altered, torn
and reconstructed or damaged.
Section 2: Effective Date.

JUSTIFICATION :
Identity theft is a serious problem in New York State. Nationally,
identity theft costs businesses and financial institutions $33 Billion
a year and Americans spent a total of 300 million hours resolving
problems related to identity theft. Contrary to popular belief,
ripping up credit card applications is not a good way to prevent
people from stealing their identity using an damaged credit card
application. Credit card companies are currently required by law to
process any application it receives regardless of if it has been
altered, torn and reconstructed or damaged. The current law make it
easy for an identity thief to get a credit card in someone else's
name. This legislation would rectify this situation by requiring
credit card companies not to process any application that has been
altered, torn and reconstructed or damaged.

LEGISLATIVE HISTORY :
2007-2008 - Consumer Protection

FISCAL IMPLICATIONS :
None.

EFFECTIVE DATE :
This act shall take effect immediately.
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