NY State Senate Bill S2829B

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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

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Actions

view actions (12)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to consumer protection returned to senate died in assembly
Jun 20, 2019	referred to consumer affairs and protection delivered to assembly passed senate
Jun 11, 2019	amended on third reading 2829b
Jun 03, 2019	amended on third reading 2829a
May 06, 2019	advanced to third reading
May 01, 2019	2nd report cal.
Apr 30, 2019	1st report cal.547
Jan 29, 2019	referred to consumer protection

Votes

view votes

Jun 20, 2019 - floor Vote

S2829B

floor

Aye

Nay

Absent

Excused

Abstained

Apr 30, 2019 - Consumer Protection committee Vote

S2829

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show committee vote details

Committee Vote: Apr 30, 2019

aye (6)

aye wr (1)

Jacobs

Feb 4, 2019 - Consumer Protection committee Vote

S2829

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

show committee vote details

Committee Vote: Feb 4, 2019

aye (5)

aye wr (2)

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

view additional co-sponsors

S2829 - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §601-b, amd §602, Gen Bus L; amd §94-a, Exec L

S2829 - Summary

Requires debt collectors to send consumers a written notice of their rights under state law along with their initial debt collection correspondence; such notice would contain information such as who and when a principal creditor may contact a debtor about the debt owed as well as the fact that a principal creditor cannot disclose information affecting a consumer debtor's reputation for creditworthiness if the principal creditor knows or has reason to know such information is false; applies to consumer rather than commercial debts.

S2829 - Sponsor Memo

 
BILL NUMBER: S2829           REVISED MEMO 01/31/2019

SPONSOR: THOMAS
 
TITLE OF BILL:  An act to amend the general business law and the exec-
utive law, in relation to debt collection notices

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide a "Debtor's Rights" statement which will inform consumers of
certain provisions of New York's debt collection practices law.

 
SUMMARY OF PROVISIONS:

This bill would set forth a specific notice to consumers that will be
included in each initial correspondence on a past due debt. This notice
will lay out the consumer's rights under the New York law regulating
debt collection practices, including how and when a debt collector may
contact a debtor about the debt owed. The bill also clarifies when a
debt collector may contact a debtor's employer.

DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

This amendment removed exemptions of what types of debt collectors would
be required to disclose the statement of right to debtors.

 
JUSTIFICATION:

Consumers who cannot manage their debt may find themselves subject to a
debt collection, but very few consumers are aware of their rights as a
debtor. Debt collectors contact consumers at work in ways that violate
the law, late at night and through unauthorized third parties. Informing
consumers of their rights will allow them to report debt collectors who
operate illegally. Consumers deserve to be treated fairly and reason-
ably, even when they have outstanding debts.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A4150 Referred to Consumer Affairs and Protection
2015-2016: A.2072 Referred to Consumer Affairs and Protection
2013-2014: A.2246 Referred to Consumer Affairs and Protection
2012: A.8887 Referred to Consumer Affairs and Protection
2011: A.891 Referred to Consumer Affairs and Protection
2009-2010: A.271 Advanced to Third Reading
2007-2008: A.221 Passed Assembly
2005-2006: A.614 Advance to Third Reading

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
This bill would take effect on the first of January next succeeding the
date on which it shall have become law.

S2829 - Bill Text download pdf


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

                                  2829

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 29, 2019
                               ___________

Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business  law  and  the  executive  law,  in
  relation to debt collection notices

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

  Section 1.   The general business law  is  amended  by  adding  a  new
section 601-b to read as follows:
  §  601-B. DEBT COLLECTION NOTICE TO CONSUMERS.  1. (A) AS USED IN THIS
SECTION, "DEBT COLLECTION AGENCY" SHALL MEAN A PERSON,  FIRM  OR  CORPO-
RATION  ENGAGED  IN BUSINESS, THE PRINCIPAL PURPOSE OF WHICH IS TO REGU-
LARLY COLLECT OR ATTEMPT TO COLLECT DEBTS: (I) OWED  OR DUE OR  ASSERTED
TO  BE OWED OR DUE TO ANOTHER; OR (II) OBTAINED BY, OR ASSIGNED TO, SUCH
PERSON, FIRM OR CORPORATION,  THAT  ARE  IN  DEFAULT  WHEN  OBTAINED  OR
ACQUIRED BY SUCH PERSON, FIRM OR CORPORATION.
  (B)  SUCH  TERM  SHALL  NOT  INCLUDE:  (I) ANY PERSON WHILE SERVING OR
ATTEMPTING TO SERVE LEGAL PROCESS ON ANY OTHER PERSON IN CONNECTION WITH
THE JUDICIAL ENFORCEMENT OF ANY DEBT;
  (II) ANY ATTORNEY-AT-LAW OR LAW FIRM COLLECTING A DEBT IN SUCH CAPACI-
TY ON BEHALF OF AND IN THE NAME OF A  CLIENT  THROUGH  LEGAL  ACTIVITIES
SUCH  AS THE FILING AND PROSECUTION OF LAWSUITS TO REDUCE DEBTS TO JUDG-
MENTS, BUT NOT ANY ATTORNEY-AT-LAW OR LAW FIRM WHICH  REGULARLY  ENGAGES
IN  ACTIVITIES  TRADITIONALLY ASSOCIATED WITH DEBT COLLECTION, INCLUDING
BUT NOT LIMITED TO, SENDING DEMAND LETTERS OR  MAKING  COLLECTION  TELE-
PHONE CALLS;
  (III)  ANY OFFICER OR EMPLOYEE OF THE UNITED STATES, ANY STATE THEREOF
OR ANY POLITICAL SUBDIVISION OF ANY STATE TO THE EXTENT THAT  COLLECTING
OR  ATTEMPTING  TO COLLECT ANY DEBT OWED IS IN THE PERFORMANCE OF HIS OR
HER OFFICIAL DUTIES; OR
  (IV) ANY NON-PROFIT ORGANIZATION WHICH, AT THE REQUEST  OF  CONSUMERS,
PERFORMS  BONA  FIDE CONSUMER CREDIT COUNSELING AND ASSISTS CUSTOMERS IN

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

                                                           LBD01314-02-9

S. 2829                             2

THE LIQUIDATION OF THEIR DEBTS BY RECEIVING PAYMENTS FROM SUCH CUSTOMERS
AND DISTRIBUTING SUCH AMOUNTS TO CREDITORS.
  2. EACH AND EVERY DEBT COLLECTION AGENCY SHALL INCLUDE IN EACH INITIAL
CORRESPONDENCE  ON  A  PAST DUE DEBT TO A DEBTOR A CLEAR AND CONSPICUOUS
WRITTEN STATEMENT OF AT LEAST THE FOLLOWING ITEMS, IN SUBSTANTIALLY  THE
FOLLOWING  FORM,  TO  BE  CLEARLY  AND  CONSPICUOUSLY  LABELED "DEBTOR'S
RIGHTS":
                            "DEBTOR'S RIGHTS
  AS A DEBTOR WHO OWES OR MAY OWE A CONSUMER CLAIM, YOU ARE  GIVEN  SOME
PROTECTION  AND  RIGHTS BY THE NEW YORK AND FEDERAL LAWS REGULATING DEBT
COLLECTION PROCEDURES.  YOU SHOULD BE AWARE OF YOUR RIGHTS.
  1. A DEBT COLLECTOR MAY CONTACT YOU OR ANY MEMBER OF  YOUR  FAMILY  OR
HOUSEHOLD DIRECTLY. HOWEVER, THEY MAY NOT CONTACT YOU WITH SUCH FREQUEN-
CY,  AT  UNUSUAL  HOURS, OR IN A MANNER THAT CAN BE EXPECTED TO ABUSE OR
HARASS YOU. THEY ALSO CANNOT THREATEN ACTION WHICH THEY DO NOT  TAKE  IN
THE USUAL COURSE OF BUSINESS.
  2.  A DEBT COLLECTOR MAY NOT THREATEN TO CONTACT YOUR EMPLOYER REGARD-
ING A DEBT PRIOR TO OBTAINING A FINAL JUDGMENT AGAINST YOU.  HOWEVER,  A
DEBT  COLLECTOR  MAY  CONTACT YOUR EMPLOYER TO EXECUTE A WAGE ASSIGNMENT
AGREEMENT IF YOU, THE DEBTOR, HAVE AGREED TO THE ASSIGNMENT.
  3. A DEBT COLLECTOR CANNOT USE A COMMUNICATION  WHICH  APPEARS  TO  BE
AUTHORIZED,  ISSUED, OR APPROVED BY A GOVERNMENT AGENCY OR ATTORNEY WHEN
IT IS NOT.
  4. A DEBT COLLECTOR CANNOT DISCLOSE OR THREATEN TO  DISCLOSE  INFORMA-
TION  AFFECTING  YOUR  REPUTATION  FOR CREDITWORTHINESS IF THE COLLECTOR
KNOWS OR HAS REASON TO KNOW THE INFORMATION IS FALSE. A  DEBT  COLLECTOR
ALSO  CANNOT ATTEMPT OR THREATEN TO ENFORCE A RIGHT WHEN IT KNOWS OR HAS
REASON TO KNOW THE RIGHT DOES NOT EXIST.
  FOR MORE INFORMATION ABOUT YOUR RIGHTS UNDER STATE  AND  FEDERAL  DEBT
COLLECTION  PROCEDURES  LAW, CONTACT THE CONSUMER PROTECTION DIVISION OF
THE NEW YORK STATE DEPARTMENT OF STATE AT (INSERT THE CURRENT  TELEPHONE
NUMBER  OR INTERNET WEBSITE ESTABLISHED BY THE CONSUMER PROTECTION DIVI-
SION FOR RECEIVING INQUIRIES FROM CONSUMERS).  YOU MAY ALSO CONTACT  THE
NEW  YORK STATE ATTORNEY GENERAL AT (INSERT THE CURRENT TELEPHONE NUMBER
ESTABLISHED BY THE  DEPARTMENT  OF  LAW  FOR  RECEIVING  INQUIRIES  FROM
CONSUMERS)  OR (INSERT THE CURRENT ADDRESS OF THE WEBSITE OF THE DEPART-
MENT OF LAW)."
  THE NOTICE REQUIRED BY THIS SUBDIVISION SHALL BE PRINTED OR WRITTEN IN
AT LEAST TEN POINT BOLD TYPE.
  § 2. Subdivision 1 of section 602 of  the  general  business  law,  as
added by chapter 753 of the laws of 1973, is amended to read as follows:
  1. Except as otherwise provided by law, any person who [shall violate]
VIOLATES the terms OF SECTION SIX HUNDRED ONE of this article [shall be]
IS  guilty  of  a misdemeanor, and each such violation shall be deemed a
separate offense. A VIOLATION BY ANY PERSON OF SECTION SIX HUNDRED ONE-B
OF THIS ARTICLE, IF SUCH VIOLATION CONSTITUTES THE FIRST SUCH OFFENSE BY
SUCH PERSON, IS PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED TWO  HUNDRED
FIFTY  DOLLARS.  THE SECOND OFFENSE AND ANY OFFENSE COMMITTED THEREAFTER
ARE PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS.
  § 3. Paragraphs 14 and 15 of subdivision 3  of  section  94-a  of  the
executive  law,  as  added  by section 21 of part A of chapter 62 of the
laws of 2011, are amended to read as follows:
  (14) cooperate with and assist consumers in class  actions  in  proper
cases; [and]
  (15)  create  an internet website or webpage pursuant to section three
hundred ninety-c of the general business law; AND

S. 2829                             3

  (16) CREATE AN INTERNET WEBSITE OR WEBPAGE THAT INCLUDES THE "DEBTOR'S
RIGHTS" FORM ESTABLISHED PURSUANT TO  SUBDIVISION  TWO  OF  SECTION  SIX
HUNDRED ONE-B OF THE GENERAL BUSINESS LAW. SUCH WEBSITE OR WEBPAGE SHALL
ALSO  INCLUDE,  BUT  NOT  LIMITED  TO,  A SAMPLE INITIAL DEBT COLLECTION
DISPUTE  LETTER,  A  SAMPLE DEBT COLLECTION CEASE AND DESIST LETTER, AND
THE CURRENT CONTACT INFORMATION FOR THE ATTORNEY GENERAL AND THE FEDERAL
TRADE COMMISSION.
  § 4. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

Co-Sponsors

view additional co-sponsors

S2829A - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §601-b, amd §602, Gen Bus L; amd §94-a, Exec L

S2829A - Summary

S2829A - Sponsor Memo

 
BILL NUMBER: S2829A

SPONSOR: THOMAS
 
TITLE OF BILL:  An act to amend the general business law and the exec-
utive law, in relation to debt collection notices

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide a "Debtor's Rights" statement which will inform consumers of
certain provisions of New York's debt collection practices law.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the general business law by adding a new
section 601-b.

-Subdivision 1 of section 601-b defines the term "debt collection agen-
cy".

-Subdivision 2 of section 601-b states the details that must be provided
in the initial correspondence on a past due debt to a consumer.

Section 2 of the bill amends subdivision 1 of section 602 of the general
business law as added by chapter 753 of the laws of 1973, which states
the penalties associated with violating the provisions put forth in
section 601.

Section 3 of the bill amends paragraph 14 and 15 of subdivision 3 of
section 94-a of the executive law, as added by section 21 of part A of
chapter 62 of the laws of 2011, which state that the consumer protection
division of the department of state will create a website that includes
the "Consumer's Rights" form established in section 601-b, including a
sample initial debt collection dispute letter, a sample debt collection
cease and desist letter, and the current contact information for the
attorney general and the federal trade commission.

Section 4 states the effective date.
 
JUSTIFICATION:

Consumers who cannot manage their debt may find themselves subject to a
debt collection, but very few consumers are aware of their rights as a
debtor. Debt collectors contact consumers at work in ways that violate
the law, late at night and through unauthorized third parties. Informing
consumers of their rights will allow them to report debt collectors who
operate illegally. Consumers deserve to be treated fairly and reason-
ably, even when they have outstanding debts.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A4150 Referred to Consumer Affairs and Protection
2015-2016: A.2072 Referred to Consumer Affairs and Protection
2013-2014: A.2246 Referred to Consumer Affairs and Protection
2012: A.8887 Referred to Consumer Affairs and Protection
2011: A.891 Referred to Consumer Affairs and Protection
2009-2010: A.271 Advanced to Third Reading
2007-2008: A.221 Passed Assembly
2005-2006: A.614 Advance to Third Reading

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None

 
EFFECTIVE DATE:
This bill would take effect on the first of January next succeeding the
date on which it shall have become law.

S2829A - Bill Text download pdf


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

                                 2829--A
    Cal. No. 547

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 29, 2019
                               ___________

Introduced  by  Sens. THOMAS, ADDABBO, BIAGGI, BROOKS, COMRIE, GAUGHRAN,
  GOUNARDES,  KENNEDY,  KRUEGER,  LIU,  MARTINEZ,  MONTGOMERY,   PARKER,
  PERSAUD,  RAMOS,  SALAZAR, SERRANO, STAVISKY -- read twice and ordered
  printed, and when printed to be committed to the Committee on Consumer
  Protection -- reported favorably from said committee, ordered to first
  and second report, ordered to a third  reading,  amended  and  ordered
  reprinted, retaining its place in the order of third reading

AN  ACT  to  amend  the  general  business law and the executive law, in
  relation to debt collection notices

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

  Section  1.    The  general  business  law  is amended by adding a new
section 601-b to read as follows:
  § 601-B. DEBT COLLECTION NOTICE TO CONSUMERS.  1. (A) AS USED IN  THIS
SECTION,  "DEBT  COLLECTION  AGENCY" SHALL MEAN A PERSON, FIRM OR CORPO-
RATION ENGAGED IN BUSINESS, THE PRINCIPAL PURPOSE OF WHICH IS  TO  REGU-
LARLY  COLLECT OR ATTEMPT TO COLLECT CONSUMER DEBTS: (I) OWED  OR DUE OR
ASSERTED TO BE OWED OR DUE TO ANOTHER; OR (II) OBTAINED BY, OR  ASSIGNED
TO,  SUCH PERSON, FIRM OR CORPORATION, THAT ARE IN DEFAULT WHEN OBTAINED
OR ACQUIRED BY SUCH PERSON, FIRM OR CORPORATION.
  (B) DEBT COLLECTION AGENCIES SHALL NOT INCLUDE: (I) ANY PERSON SUBJECT
TO (A) SERVING, FILING, OR CONVEYING FORMAL LEGAL  PLEADINGS,  DISCOVERY
REQUESTS,  JUDGMENTS OR OTHER DOCUMENTS PURSUANT TO THE APPLICABLE RULES
OF PROCEDURE; (B) COMMUNICATING IN, OR AT THE DIRECTION OF, A  COURT  OF
LAW  OR IN DEPOSITIONS OR SETTLEMENT CONFERENCES OR OTHER COMMUNICATIONS
IN CONNECTION WITH A PENDING LEGAL ACTION TO COLLECT A DEBT ON BEHALF OF
A CLIENT; OR (C) COLLECTING ON OR ENFORCING A MONEY JUDGMENT;
  (II) ANY ATTORNEY-AT-LAW OR LAW FIRM COLLECTING A DEBT IN SUCH CAPACI-
TY ON BEHALF OF AND IN THE NAME OF A  CLIENT  THROUGH  LEGAL  ACTIVITIES
SUCH  AS  PROSECUTION  OF LAWSUITS TO REDUCE DEBTS TO JUDGMENTS, BUT NOT
ANY ATTORNEY-AT-LAW OR LAW FIRM WHICH REGULARLY  ENGAGES  IN  ACTIVITIES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD01314-07-9

S. 2829--A                          2

TRADITIONALLY ASSOCIATED WITH DEBT COLLECTION, INCLUDING BUT NOT LIMITED
TO, SENDING DEMAND LETTERS OR MAKING COLLECTION TELEPHONE CALLS;
  (III)  ANY OFFICER OR EMPLOYEE OF THE UNITED STATES, ANY STATE THEREOF
OR ANY POLITICAL SUBDIVISION OF ANY STATE TO THE EXTENT THAT  COLLECTING
OR  ATTEMPTING  TO COLLECT ANY DEBT OWED IS IN THE PERFORMANCE OF HIS OR
HER OFFICIAL DUTIES; OR
  (IV) ANY NON-PROFIT ORGANIZATION WHICH, AT THE REQUEST  OF  CONSUMERS,
PERFORMS  BONA  FIDE CONSUMER CREDIT COUNSELING AND ASSISTS CUSTOMERS IN
THE LIQUIDATION OF THEIR DEBTS BY RECEIVING PAYMENTS FROM SUCH CUSTOMERS
AND DISTRIBUTING SUCH AMOUNTS TO CREDITORS.
  2. EACH AND EVERY DEBT COLLECTION AGENCY SHALL INCLUDE IN ITS  INITIAL
CORRESPONDENCE  ON  A  PAST DUE DEBT TO A CONSUMER THE FOLLOWING WRITTEN
STATEMENT LABELED "CONSUMER RIGHTS", IN A CLEAR AND CONSPICUOUS  MANNER,
AND IN A FORM IDENTICAL OR SUBSTANTIALLY SIMILAR TO THE FOLLOWING:
                           "CONSUMER'S RIGHTS
  AS  A  CONSUMER  WHO  OWES  OR  MAY OWE A CONSUMER DEBT, YOU ARE GIVEN
PROTECTION AND RIGHTS BY THE NEW YORK AND FEDERAL LAWS  REGULATING  DEBT
COLLECTION PROCEDURES.  YOU SHOULD BE AWARE OF YOUR RIGHTS.
  1. A DEBT COLLECTOR CANNOT CONTACT YOU WITH SUCH FREQUENCY, AT UNUSUAL
HOURS,  OR  IN  A  MANNER THAT CAN BE EXPECTED TO ABUSE OR HARASS YOU. A
DEBT COLLECTOR CANNOT USE FALSE OR MISLEADING STATEMENTS WHEN ATTEMPTING
TO COLLECT A DEBT, SUCH AS COLLECTING MORE THAN AMOUNT OWED, OR THREATEN
TO GARNISH YOUR WAGES OR LEVY YOUR  BANK  ACCOUNT  WITHOUT  FIRST  BEING
AWARDED A JUDGMENT BY A COURT. A DEBT COLLECTOR CANNOT CONTACT YOU AFTER
YOU  HAVE REQUESTED IN WRITING THAT THEY CEASE COMMUNICATIONS, EXCEPT TO
ACKNOWLEDGE RECEIPT OF YOUR LETTER.
  2. A DEBT COLLECTOR CANNOT THREATEN TO CONTACT YOUR EMPLOYER REGARDING
A DEBT PRIOR TO OBTAINING A  FINAL  JUDGMENT  AGAINST  YOU  UNLESS  SUCH
CONTACT IS DIRECTLY RELATED TO WAGE GARNISHMENTS.
  3.  A  DEBT  COLLECTOR  CANNOT USE A COMMUNICATION WHICH APPEARS TO BE
AUTHORIZED, ISSUED, OR APPROVED BY A GOVERNMENT AGENCY OR ATTORNEY  WHEN
IT IS NOT.
  4.  A  DEBT COLLECTOR CANNOT DISCLOSE OR THREATEN TO DISCLOSE INFORMA-
TION AFFECTING YOUR REPUTATION FOR  CREDITWORTHINESS  IF  THE  COLLECTOR
KNOWS  OR  HAS REASON TO KNOW THE INFORMATION IS FALSE. A DEBT COLLECTOR
ALSO CANNOT ATTEMPT OR THREATEN TO ENFORCE A RIGHT WHEN IT KNOWS OR  HAS
REASON TO KNOW THE RIGHT DOES NOT EXIST.
  FOR  MORE  INFORMATION  ABOUT YOUR RIGHTS UNDER STATE AND FEDERAL DEBT
COLLECTION PROCEDURES LAW, CONTACT THE CONSUMER PROTECTION  DIVISION  OF
THE  NEW YORK STATE DEPARTMENT OF STATE AT (INSERT THE CURRENT TELEPHONE
NUMBER OR INTERNET WEBSITE ESTABLISHED BY THE CONSUMER PROTECTION  DIVI-
SION  FOR RECEIVING INQUIRIES FROM CONSUMERS).  YOU MAY ALSO CONTACT THE
NEW YORK STATE ATTORNEY GENERAL AT (INSERT THE CURRENT TELEPHONE  NUMBER
ESTABLISHED  BY  THE  DEPARTMENT  OF  LAW  FOR  RECEIVING INQUIRIES FROM
CONSUMERS) OR (INSERT THE CURRENT ADDRESS OF THE WEBSITE OF THE  DEPART-
MENT  OF LAW), OR THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES AT
(INSERT THE CURRENT TELEPHONE NUMBER OR INTERNET WEBSITE ESTABLISHED  BY
THE DEPARTMENT OF FINANCIAL SERVICES).
  IF  YOU  LIVE  IN  NEW  YORK  CITY,  YOU MAY BE ENTITLED TO ADDITIONAL
PROTECTIONS UNDER THE LAWS AND RULES OF THE CITY OF NEW YORK. FOR INFOR-
MATION ABOUT YOUR RIGHTS UNDER CITY  LAW,  CONTACT  THE  NEW  YORK  CITY
DEPARTMENT OF CONSUMER AFFAIRS AT 311 OR WWW.NYC.GOV/DCA."
  THE NOTICE REQUIRED BY THIS SUBDIVISION SHALL BE PRINTED OR WRITTEN IN
AT LEAST TWELVE POINT BOLD TYPE.
  §  2.  Subdivision  1  of  section 602 of the general business law, as
added by chapter 753 of the laws of 1973, is amended to read as follows:

S. 2829--A                          3

  1. Except as otherwise provided by law, any person who [shall violate]
VIOLATES the terms OF SECTION SIX HUNDRED ONE of this article [shall be]
IS guilty of a misdemeanor, and each such violation shall  be  deemed  a
separate offense. A VIOLATION BY ANY PERSON OF SECTION SIX HUNDRED ONE-B
OF THIS ARTICLE, IF SUCH VIOLATION CONSTITUTES THE FIRST SUCH OFFENSE BY
SUCH  PERSON, IS PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED TWO HUNDRED
FIFTY DOLLARS.  THE SECOND OFFENSE AND ANY OFFENSE COMMITTED  THEREAFTER
ARE PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS.
  §  3.  Paragraphs  14  and  15 of subdivision 3 of section 94-a of the
executive law, as added by section 21 of part A of  chapter  62  of  the
laws of 2011, are amended to read as follows:
  (14)  cooperate  with  and assist consumers in class actions in proper
cases; [and]
  (15) create an internet website or webpage pursuant to  section  three
hundred ninety-c of the general business law; AND
  (16)  CREATE AN INTERNET WEBSITE OR WEBPAGE THAT INCLUDES THE "CONSUM-
ER'S RIGHTS" FORM ESTABLISHED PURSUANT TO SUBDIVISION TWO OF SECTION SIX
HUNDRED ONE-B OF THE GENERAL BUSINESS LAW. SUCH WEBSITE OR WEBPAGE SHALL
ALSO INCLUDE, BUT NOT LIMITED  TO,  A  SAMPLE  INITIAL  DEBT  COLLECTION
DISPUTE  LETTER,  A  SAMPLE DEBT COLLECTION CEASE AND DESIST LETTER, AND
THE CURRENT CONTACT INFORMATION FOR THE ATTORNEY GENERAL AND THE FEDERAL
TRADE COMMISSION.
  § 4. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

Co-Sponsors

view additional co-sponsors

S2829B (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §601-b, amd §602, Gen Bus L; amd §94-a, Exec L

S2829B (ACTIVE) - Summary

S2829B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S2829B

SPONSOR: THOMAS
 
TITLE OF BILL:  An act to amend the general business law and the exec-
utive law, in relation to debt collection notices

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide a "Debtor's Rights" statement which will inform consumers of
certain provisions of New York's debt collection practices law.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the general business law by adding a new
section 601-b.
-Subdivision 1 of section 601-b defines the term "debt collection agen-
cy".
-Subdivision 2 of section 601-b states the details that must be provided
in the initial correspondence on a past due debt to a consumer.

Section 2 of the bill amends subdivision 1 of section 602 of the general

business law as added by chapter 753 of the laws of 1973, which states
the penalties associated with violating the provisions put forth in
section 601.

Section 3 of the bill amends paragraph 14 and 15 of subdivision 3 of
section 94-a of the executive law, as added by section 21 of part A of
chapter 62 of the laws of 2011, which state that the consumer protection
division of the department of state will create a website that includes
the "Consumer's Rights" form established in section 601-b, including a
sample initial debt collection dispute letter, a sample debt collection
cease and desist letter, and the current contact information for the
attorney general and the federal trade commission.

Section 4 states the effective date.

 
JUSTIFICATION:

Consumers who cannot manage their debt may find themselves subject to a
debt collection, but very few consumers are aware of their rights as a
debtor. Debt collectors contact consumers at work in ways that violate
the law, late at night and through unauthorized third parties. Informing
consumers of their rights will allow them to report debt collectors who
operate illegally. Consumers deserve to be treated fairly and reason-
ably, even when they have outstanding debts.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A4150 Referred to Consumer Affairs and Protection
2015-2016: A.2072 Referred to Consumer Affairs and Protection
2013-2014: A.2246 Referred to Consumer Affairs and Protection
2012:A.8887 Referred to Consumer Affairs and Protection
2011: A.891 Referred to Consumer Affairs and Protection
2009-2010: A.271 Advanced to Third Reading
2007-2008: A.221 Passed Assembly
2005-2006: A.614 Advance to Third Reading

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
This bill would take effect on the first of January next succeeding the
date on which it shall have become law.

S2829B (ACTIVE) - Bill Text download pdf


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

                                 2829--B
    Cal. No. 547

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 29, 2019
                               ___________

Introduced  by  Sens. THOMAS, ADDABBO, BIAGGI, BROOKS, COMRIE, GAUGHRAN,
  GOUNARDES,  KENNEDY,  KRUEGER,  LIU,  MARTINEZ,  MONTGOMERY,   PARKER,
  PERSAUD,  RAMOS,  SALAZAR, SERRANO, STAVISKY -- read twice and ordered
  printed, and when printed to be committed to the Committee on Consumer
  Protection -- reported favorably from said committee, ordered to first
  and second report, ordered to a third  reading,  amended  and  ordered
  reprinted,  retaining its place in the order of third reading -- again
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

AN  ACT  to  amend  the  general  business law and the executive law, in
  relation to debt collection notices

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

  Section  1.    The  general  business  law  is amended by adding a new
section 601-b to read as follows:
  § 601-B. DEBT COLLECTION NOTICE TO CONSUMERS.  1. (A) AS USED IN  THIS
SECTION,  "DEBT  COLLECTION  AGENCY" SHALL MEAN A PERSON, FIRM OR CORPO-
RATION ENGAGED IN BUSINESS, THE PRINCIPAL PURPOSE OF WHICH IS  TO  REGU-
LARLY  COLLECT OR ATTEMPT TO COLLECT CONSUMER DEBTS: (I) OWED  OR DUE OR
ASSERTED TO BE OWED OR DUE TO ANOTHER; OR (II) OBTAINED BY, OR  ASSIGNED
TO,  SUCH PERSON, FIRM OR CORPORATION, THAT ARE IN DEFAULT WHEN OBTAINED
OR ACQUIRED BY SUCH PERSON, FIRM OR CORPORATION.
  (B) DEBT COLLECTION AGENCIES SHALL NOT INCLUDE: (I) ANY PERSON SUBJECT
TO (A) SERVING, FILING, OR CONVEYING FORMAL LEGAL  PLEADINGS,  DISCOVERY
REQUESTS,  JUDGMENTS OR OTHER DOCUMENTS PURSUANT TO THE APPLICABLE RULES
OF PROCEDURE; (B) COMMUNICATING IN, OR AT THE DIRECTION OF, A  COURT  OF
LAW  OR IN DEPOSITIONS OR SETTLEMENT CONFERENCES OR OTHER COMMUNICATIONS
IN CONNECTION WITH A PENDING LEGAL ACTION TO COLLECT A DEBT ON BEHALF OF
A CLIENT; OR (C) COLLECTING ON OR ENFORCING A MONEY JUDGMENT;
  (II) ANY ATTORNEY-AT-LAW OR LAW FIRM COLLECTING A DEBT IN SUCH CAPACI-
TY ON BEHALF OF AND IN THE NAME OF A  CLIENT  THROUGH  LEGAL  ACTIVITIES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD01314-09-9

S. 2829--B                          2

SUCH  AS  PROSECUTION  OF LAWSUITS TO REDUCE DEBTS TO JUDGMENTS, BUT NOT
ANY ATTORNEY-AT-LAW OR LAW FIRM WHICH REGULARLY  ENGAGES  IN  ACTIVITIES
TRADITIONALLY ASSOCIATED WITH DEBT COLLECTION, INCLUDING BUT NOT LIMITED
TO, SENDING DEMAND LETTERS OR MAKING COLLECTION TELEPHONE CALLS;
  (III)  ANY OFFICER OR EMPLOYEE OF THE UNITED STATES, ANY STATE THEREOF
OR ANY POLITICAL SUBDIVISION OF ANY STATE TO THE EXTENT THAT  COLLECTING
OR  ATTEMPTING  TO COLLECT ANY DEBT OWED IS IN THE PERFORMANCE OF HIS OR
HER OFFICIAL DUTIES; OR
  (IV) ANY NON-PROFIT ORGANIZATION WHICH, AT THE REQUEST  OF  CONSUMERS,
PERFORMS  BONA  FIDE CONSUMER CREDIT COUNSELING AND ASSISTS CUSTOMERS IN
THE LIQUIDATION OF THEIR DEBTS BY RECEIVING PAYMENTS FROM SUCH CUSTOMERS
AND DISTRIBUTING SUCH AMOUNTS TO CREDITORS.
  2. EACH AND EVERY DEBT COLLECTION AGENCY SHALL INCLUDE IN ITS  INITIAL
CORRESPONDENCE  ON  A PAST DUE DEBT TO A CONSUMER, OR ON A SEPARATE FORM
INCLUDED WITH SUCH INITIAL CORRESPONDENCE, THE FOLLOWING WRITTEN  STATE-
MENT  LABELED  "CONSUMER RIGHTS", IN A CLEAR AND CONSPICUOUS MANNER, AND
IN A FORM IDENTICAL OR SUBSTANTIALLY SIMILAR TO THE FOLLOWING:
                           "CONSUMER'S RIGHTS
  AS A CONSUMER WHO OWES OR MAY OWE  A  CONSUMER  DEBT,  YOU  ARE  GIVEN
PROTECTION  AND  RIGHTS BY THE NEW YORK AND FEDERAL LAWS REGULATING DEBT
COLLECTION PROCEDURES.  YOU SHOULD BE AWARE OF YOUR RIGHTS.
  1. A DEBT COLLECTOR CANNOT CONTACT YOU WITH SUCH FREQUENCY, AT UNUSUAL
HOURS, OR IN A MANNER THAT CAN BE EXPECTED TO ABUSE  OR  HARASS  YOU.  A
DEBT COLLECTOR CANNOT USE FALSE OR MISLEADING STATEMENTS WHEN ATTEMPTING
TO COLLECT A DEBT, SUCH AS COLLECTING MORE THAN AMOUNT OWED, OR THREATEN
TO  GARNISH  YOUR  WAGES  OR  LEVY YOUR BANK ACCOUNT WITHOUT FIRST BEING
AWARDED A JUDGMENT BY A COURT. A DEBT COLLECTOR CANNOT CONTACT YOU AFTER
YOU HAVE REQUESTED IN WRITING THAT THEY CEASE COMMUNICATIONS, EXCEPT  TO
ACKNOWLEDGE RECEIPT OF YOUR LETTER.
  2. A DEBT COLLECTOR CANNOT THREATEN TO CONTACT YOUR EMPLOYER REGARDING
A  DEBT  PRIOR  TO  OBTAINING  A  FINAL JUDGMENT AGAINST YOU UNLESS SUCH
CONTACT IS DIRECTLY RELATED TO WAGE GARNISHMENTS.
  3. A DEBT COLLECTOR CANNOT USE A COMMUNICATION  WHICH  APPEARS  TO  BE
AUTHORIZED,  ISSUED, OR APPROVED BY A GOVERNMENT AGENCY OR ATTORNEY WHEN
IT IS NOT.
  4. A DEBT COLLECTOR CANNOT DISCLOSE OR THREATEN TO  DISCLOSE  INFORMA-
TION  AFFECTING  YOUR  REPUTATION  FOR CREDITWORTHINESS IF THE COLLECTOR
KNOWS OR HAS REASON TO KNOW THE INFORMATION IS FALSE. A  DEBT  COLLECTOR
ALSO  CANNOT ATTEMPT OR THREATEN TO ENFORCE A RIGHT WHEN IT KNOWS OR HAS
REASON TO KNOW THE RIGHT DOES NOT EXIST.
  FOR MORE INFORMATION ABOUT YOUR RIGHTS UNDER STATE  AND  FEDERAL  DEBT
COLLECTION  PROCEDURES  LAW, CONTACT THE CONSUMER PROTECTION DIVISION OF
THE NEW YORK STATE DEPARTMENT OF STATE AT (INSERT THE CURRENT  TELEPHONE
NUMBER  OR INTERNET WEBSITE ESTABLISHED BY THE CONSUMER PROTECTION DIVI-
SION FOR RECEIVING INQUIRIES FROM CONSUMERS).  YOU MAY ALSO CONTACT  THE
NEW  YORK STATE ATTORNEY GENERAL AT (INSERT THE CURRENT TELEPHONE NUMBER
ESTABLISHED BY THE  DEPARTMENT  OF  LAW  FOR  RECEIVING  INQUIRIES  FROM
CONSUMERS)  OR (INSERT THE CURRENT ADDRESS OF THE WEBSITE OF THE DEPART-
MENT OF LAW), OR THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES  AT
(INSERT  THE CURRENT TELEPHONE NUMBER OR INTERNET WEBSITE ESTABLISHED BY
THE DEPARTMENT OF FINANCIAL SERVICES).
  IF YOU LIVE IN NEW YORK  CITY,  YOU  MAY  BE  ENTITLED  TO  ADDITIONAL
PROTECTIONS UNDER THE LAWS AND RULES OF THE CITY OF NEW YORK. FOR INFOR-
MATION  ABOUT  YOUR  RIGHTS  UNDER  CITY  LAW, CONTACT THE NEW YORK CITY
DEPARTMENT OF CONSUMER AFFAIRS AT 311 OR WWW.NYC.GOV/DCA."

S. 2829--B                          3

  THE NOTICE REQUIRED BY THIS SUBDIVISION SHALL BE PRINTED OR WRITTEN IN
AT LEAST TEN POINT BOLD TYPE.
  §  2.  Subdivision  1  of  section 602 of the general business law, as
added by chapter 753 of the laws of 1973, is amended to read as follows:
  1. Except as otherwise provided by law, any person who [shall violate]
VIOLATES the terms OF SECTION SIX HUNDRED ONE of this article [shall be]
IS guilty of a misdemeanor, and each such violation shall  be  deemed  a
separate offense. A VIOLATION BY ANY PERSON OF SECTION SIX HUNDRED ONE-B
OF THIS ARTICLE, IF SUCH VIOLATION CONSTITUTES THE FIRST SUCH OFFENSE BY
SUCH  PERSON, IS PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED TWO HUNDRED
FIFTY DOLLARS.  THE SECOND OFFENSE AND ANY OFFENSE COMMITTED  THEREAFTER
ARE PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS.
  §  3.  Subparagraphs  14  and  15 of paragraph (a) of subdivision 3 of
section 94-a of the executive law, as added by section 21 of part  A  of
chapter 62 of the laws of 2011, are amended to read as follows:
  (14)  cooperate  with  and assist consumers in class actions in proper
cases; [and]
  (15) create an internet website or webpage pursuant to  section  three
hundred ninety-c of the general business law; AND
  (16)  CREATE AN INTERNET WEBSITE OR WEBPAGE THAT INCLUDES THE "CONSUM-
ER'S RIGHTS" FORM ESTABLISHED PURSUANT TO SUBDIVISION TWO OF SECTION SIX
HUNDRED ONE-B OF THE GENERAL BUSINESS LAW. SUCH WEBSITE OR WEBPAGE SHALL
ALSO INCLUDE, BUT NOT LIMITED  TO,  A  SAMPLE  INITIAL  DEBT  COLLECTION
DISPUTE  LETTER,  A  SAMPLE DEBT COLLECTION CEASE AND DESIST LETTER, AND
THE CURRENT CONTACT INFORMATION FOR THE ATTORNEY GENERAL AND THE FEDERAL
TRADE COMMISSION.
  § 4. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

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