senate Bill S606A

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

See Assembly Version of this Bill:
A156A
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, A8928B

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:S606A

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--A

                       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 -- reported favorably from said  committee  and
  committed to the Committee on Commerce, Economic Development and Small
  Business  --  committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

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 INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
  (A) A TITLE IN BOLD, CAPITAL LETTERS  SAYING  "WARNING:  DO  NOT  FALL
VICTIM TO CONSUMER FRAUD;"
  (B)  QUESTIONS  OR INFORMATION THAT ALERT A CONSUMER ABOUT THE DANGERS
OF SENDING FUNDS FOR LOTTERY WINNINGS, CREDIT CARD GUARANTEES OR  LOANS,
INTERNET  OR PHONE OFFERS, TO PERSONS UNKNOWN TO THE CONSUMER OR PERSONS
WHOSE IDENTITY THE CONSUMER CANNOT VERIFY AND ANY OTHER FRAUD ALERT; AND
  (C) INFORMATION ABOUT HOW TO ASK  QUESTIONS  OF  THE  SALES  CLERK  OR
REPRESENTATIVE; AND
  (D) INFORMATION ABOUT HOW TO STOP A TRANSFER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00134-03-3

S. 606--A                           2

  2.  FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY" MEANS:
(A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN
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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