senate Bill S606

Amended

Requires transmitters of money to provide a certain warning to consumers

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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

  • 09 / Jan / 2013
    • REFERRED TO BANKS
  • 08 / Mar / 2013
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 23 / Apr / 2013
    • REPORTED AND COMMITTED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 10 / Jun / 2013
    • AMEND AND RECOMMIT TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 10 / Jun / 2013
    • PRINT NUMBER 606A
  • 08 / Jan / 2014
    • REFERRED TO BANKS
  • 26 / Feb / 2014
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 07 / May / 2014
    • REPORTED AND COMMITTED TO FINANCE

Summary

Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

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Bill Details

Versions:
S606
S606A
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
Banking Law
Laws Affected:
Add ยง652-c, Bank L
Versions Introduced in 2011-2012 Legislative Cycle:
A8928, A8928B, S6276B

Votes

9
5
9
Aye
5
Nay
5
aye with reservations
0
absent
0
excused
0
abstained
show Banks committee vote details

Sponsor Memo

BILL NUMBER:S606

TITLE OF BILL:
An act
to amend the banking law, in relation to requiring transmitters of money
to provide a certain warning to consumers

PURPOSE OR GENERAL IDEA OF BILL:
This bill would require a transmitter of money to provide a warning
about fraud to consumers.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this act would amend the banking law by adding a new
section, requiring a person engaged in the business of receiving
money for transmission or transmitting money to clearly and
prominently warn the consumers about fraud prior to completing the
transfer.

Section 2 makes this act effective on the one hundred eightieth day
after it shall have become a law.

JUSTIFICATION:
Consumer fraud hurts everyone regardless of age. The elderly, however,
are especially vulnerable to scams that call for the transferring of
money. People receive calls or emails informing them that they won
the lottery, that they have been offered a great deal, or that they
can apply for a credit card if they simply transfer funds to an
unspecified address. People have lost hundreds of thousands of
dollars when they electronically transfer funds to individuals they
do not know. This bill would require a financial institution to alert
their customers to the dangers of consumer fraud. It would help them
make better decisions before things go terribly wrong.

PRIOR LEGISLATIVE HISTORY:
2012: Senate Sill *6275-B (Gianaris) - Died in Senate Rules Committee
2012: Assembly Bill *8928-B (Nolan) - Passed Assembly 101-41 (6/19/12)

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   606

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. GIANARIS, ADAMS, ADDABBO, AVELLA, HASSELL-THOMPSON,
  KENNEDY, KRUEGER, MONTGOMERY,  PARKER,  STAVISKY,  STEWART-COUSINS  --
  read  twice  and  ordered printed, and when printed to be committed to
  the Committee on Banks

AN ACT to amend the banking law, in relation to  requiring  transmitters
  of money to provide a certain warning to consumers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The banking law is amended by adding a new section 652-c to
read as follows:
  S 652-C. REQUIRED WARNING. 1.   A PERSON ENGAGED IN  THE  BUSINESS  OF
RECEIVING  MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC-
TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER  PERSON,  BUSI-
NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
THE  TRANSMISSION  PRIOR  TO COMPLETING SUCH TRANSMISSION OF FUNDS. SUCH
WARNING SHALL CONTAIN AT THE MINIMUM THE FOLLOWING STATEMENTS:
  (A) "WARNING: DO NOT FALL VICTIM TO CONSUMER FRAUD."
  (B) "ARE YOU SENDING MONEY TO CLAIM LOTTERY WINNINGS?"
  (C) "ARE YOU SENDING MONEY BECAUSE YOU WERE GUARANTEED A  CREDIT  CARD
OR LOAN?"
  (D) "ARE YOU RESPONDING TO AN INTERNET OR PHONE OFFER THAT YOU ARE NOT
SURE IS HONEST?"
  (E) "ARE YOU SENDING MONEY TO SOMEONE YOU DO NOT KNOW OR WHOSE IDENTI-
TY YOU CANNOT VERIFY?"
  (F) "ASK THE SALES CLERK OR REPRESENTATIVE TO STOP YOUR TRANSFER RIGHT
AWAY  IF  YOU  HAVE ANY QUESTIONS OR ARE UNSURE ABOUT THE NATURE OF YOUR
TRANSACTION. IT COULD BE FRAUD."
  2. FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY"  MEANS:
(A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00134-01-3

S. 606                              2

ELECTRONIC  MEDIUM  (SUCH  AS VIDEO AND INTERACTIVE MEDIA INCLUDING, BUT
NOT LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL)  THE
WARNING  SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE THE
TRANSMISSION  OF  FUNDS, SHALL BE IN A TYPE SIZE SUFFICIENTLY NOTICEABLE
FOR AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING  AND
SHALL  BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH THE
WRITTEN WARNING APPEARS; AND (B) IN  ORAL  COMMUNICATIONS,  THE  WARNING
SHALL  BE  DELIVERED  IN A VOLUME AND CADENCE SUFFICIENT FOR AN ORDINARY
CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE-
LY THROUGH ORAL, WRITTEN OR VISUAL MEANS,  THE  WARNING  SHALL  BE  MADE
THROUGH THE SAME MEANS.
  3.  THE  WARNING  REQUIRED BY THIS SECTION SHALL NOT APPLY TO AN ELEC-
TRONIC FUNDS TRANSFER IN WHICH FUNDS ARE  NOT  TRANSFERRED  DIRECTLY  TO
ANOTHER  PERSON  AND  ARE NOT AVAILABLE FOR IMMEDIATE USE, NOR SHALL ANY
WARNING BE REQUIRED IN AN ELECTRONIC FUNDS TRANSFER  MADE  WITH  A  GIFT
CERTIFICATE  AS  DEFINED  IN  SECTION  THREE HUNDRED NINETY-SIX-I OF THE
GENERAL BUSINESS LAW.
  4. A VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL  BE  PUNISHABLE
BY  A  CIVIL  PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR THE
FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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