NY State Senate Bill 2009-S5046

Senate Bill S5046

2009-2010 Legislative Session

Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family and household members

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

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to consumer protection
Jun 02, 2009	reported and committed to codes
May 26, 2009	print number 5046a
May 26, 2009	amend and recommit to consumer protection
Apr 27, 2009	referred to consumer protection

Bill Amendments

Original

A (Active)

2009-S5046 - Details

Current Committee:: Senate Consumer Protection
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3281
2013-2014: S3317
2015-2016: S2032
2017-2018: S3491

2009-S5046 - Summary

Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family; both verbal and written.

2009-S5046 - Sponsor Memo

2009-S5046 - Bill Text download pdf

co-Sponsors

2009-S5046A (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3281
2013-2014: S3317
2015-2016: S2032
2017-2018: S3491

2009-S5046A (ACTIVE) - Summary

Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family; both verbal and written.

2009-S5046A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5046A

 TITLE OF BILL :
An act to amend the general business law, in relation to disclosure by
principal creditors and debt collection agencies of the legal
obligations of a deceased debtor's family and household members


 PURPOSE OR GENERAL IDEA OF BILL :
This bill would require that debt collection agencies that are
attempting to collect outstanding debts of deceased. individuals from
surviving family and household members inform them, both orally and in
writing, that they are not legally obligated to repay the debts of the
deceased.

 SUMMARY OF SPECIFIC PROVISIONS :
Section one amends the general business law by adding a new section
601-a. This section requires that all principal creditors and/or debt
collection agencies must disclose to any relative or household member
of a deceased debtor that is contacted that he or she may not be
legally required to repay such deceased debtor's debts. This
disclosure must be made both orally and in writing. Any aggrieved
person may bring an action against such a practice and recover a civil
penalty. Class actions to recover damages are specifically authorized.

Section two amends section 600 of the general business law by adding a

new subdivision 4. This section defines 'debt collection agency'.

Section three sets out the effective date.

 JUSTIFICATION :
Recent investigations have shown that debt collection companies often
pursue payments from relatives of deceased debtors. A New York Times
article described the practices of a debt collection agency whose
agents are specially trained to employ "empathic active listening"
techniques to comfort grieving families while luring them into paying
the deceased's debts. This may be a violation of the Fair Debt
Collection Practices Act since this law prevents collection companies
from contacting anyone other than the debtor about outstanding bills.
Even if this practice is not illegal, this legislation will ensure
that debt collectors are required to notify the relatives or household
members that they contact that they have no legal obligation to pay
off the debt of the deceased. As it stands, all relatives of deceased
debtors are not required by law to assume self loved ones' debts but
collection agencies often omit this information when they ask the
relatives to make payments on outstanding bills.

 PRIOR LEGISLATIVE HISTORY :
None.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become law.

2009-S5046A (ACTIVE) - Bill Text download pdf

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

                                 5046--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sens.  HASSELL-THOMPSON, DIAZ, SAMPSON -- 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 committee

AN ACT to amend the general business law, in relation to  disclosure  by
  principal  creditors  and  debt collection agencies of the legal obli-
  gations of a deceased debtor's family and household members

  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-a to read as follows:
  S  601-A.  DISCLOSURE  BY  PRINCIPAL  CREDITORS AND/OR DEBT COLLECTION
AGENCIES. 1. ALL PRINCIPAL CREDITORS  AND/OR  DEBT  COLLECTION  AGENCIES
SHALL  DISCLOSE TO ANY RELATIVE OR HOUSEHOLD MEMBER OF A DECEASED DEBTOR
THAT IS CONTACTED THAT HE OR SHE MAY NOT BE LEGALLY  REQUIRED  TO  REPAY
SUCH  DECEASED  DEBTOR'S  DEBTS.    IN ADDITION, THE PRINCIPAL CREDITORS
AND/OR DEBT COLLECTION AGENCIES SHALL  NOT  MAKE  ANY  MISREPRESENTATION
ABOUT THE FAMILY MEMBER'S OBLIGATION TO PAY SUCH DEBTS.
  2.  DISCLOSURE REQUIRED UNDER SUBDIVISION ONE OF THIS SECTION SHALL BE
MADE BOTH ORALLY AND IN WRITING.
  3. IN ADDITION TO ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY  GENERAL
PURSUANT  TO  THIS  ARTICLE, ANY AGGRIEVED PERSON MAY BRING AN ACTION TO
ENJOIN SUCH UNLAWFUL PRACTICE AND TO RECOVER A  CIVIL  PENALTY  OF  FIVE
THOUSAND  DOLLARS  FOR EACH VIOLATION, TOGETHER WITH ANY ACTUAL DAMAGES.
THE COURT SHALL AWARD REASONABLE ATTORNEY FEES AND COSTS TO A PREVAILING
PLAINTIFF. FOR PURPOSES OF THIS SECTION, EACH COMMUNICATION  THAT  FAILS
TO COMPLY WITH THIS SECTION SHALL CONSTITUTE A SEPARATE VIOLATION. CLASS
ACTIONS  TO  RECOVER  THE  DAMAGES SET FORTH IN THIS SECTION ARE SPECIF-
ICALLY AUTHORIZED.
  S 2. Section 600 of the general business law is amended  by  adding  a
new subdivision 4 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10546-03-9

S. 5046--A                          2

  4.  "DEBT  COLLECTION AGENCY" SHALL MEAN A PERSON, FIRM OR CORPORATION
ENGAGED IN BUSINESS, THE PRINCIPAL PURPOSE  OF  WHICH  IS  TO  REGULARLY
COLLECT  OR  ATTEMPT TO COLLECT DEBTS: (A) OWED OR DUE OR ASSERTED TO BE
OWED OR DUE TO ANOTHER; OR (B) OBTAINED BY, OR ASSIGNED TO, SUCH PERSON,
FIRM  OR  CORPORATION,  THAT ARE IN DEFAULT WHEN OBTAINED OR ACQUIRED BY
SUCH PERSON, FIRM OR CORPORATION.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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Senate Bill S5046

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Sponsored By

Ruth Hassell-Thompson