NY State Senate Bill 2009-S5896

Archive: Last Bill Status - Signed by Governor

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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Oct 20, 2010	signed chap.553
Oct 08, 2010	delivered to governor
May 18, 2010	returned to senate passed assembly ordered to third reading cal.841 substituted for a9784c
May 10, 2010	referred to judiciary returned to assembly repassed senate
May 03, 2010	amended on third reading 5896d
May 03, 2010	vote reconsidered - restored to third reading returned to senate recalled from assembly
Apr 27, 2010	referred to judiciary
Apr 26, 2010	delivered to assembly passed senate
Apr 19, 2010	advanced to third reading
Apr 14, 2010	2nd report cal.
Apr 13, 2010	1st report cal.378
Mar 23, 2010	print number 5896c
Mar 23, 2010	amend and recommit to codes
Mar 09, 2010	reported and committed to codes
Mar 03, 2010	print number 5896b
Mar 03, 2010	amend and recommit to judiciary
Jan 06, 2010	referred to judiciary
Sep 23, 2009	print number 5896a
Sep 23, 2009	amend and recommit to rules
Jun 18, 2009	referred to rules

Votes

- May 10, 2010 - Floor Vote
  S5896
  
  Aye
  
  57
  
  Nay
  
  4
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Floor Vote: May 10, 2010
      
      aye (57)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Foley
      
      Fuschillo
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      nay (4)
      
      DeFrancisco
      
      Flanagan
      
      Golden
      
      Lanza
      
      excused (1)
      
      Morahan
  Apr 26, 2010 - Floor Vote
  S5896
  
  Aye
  
  59
  
  Nay
  
  2
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Floor Vote: Apr 26, 2010
      
      aye (59)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      nay (2)
      
      Flanagan
      
      Lanza
      
      excused (1)
      
      Morahan
  Mar 9, 2010 - Judiciary Committee Vote
  S5896
  
  Aye
  
  12
  
  Nay
  
  1
  
  Aye with Reservations
  
  10
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Judiciary Committee Vote: Mar 9, 2010
      
      aye (12)
      
      Adams
      
      Breslin
      
      Diaz
      
      Dilan
      
      Espada
      
      Hassell-Thompson
      
      Klein
      
      Onorato
      
      Perkins
      
      Sampson
      
      Savino
      
      Schneiderman
      
      nay (1)
      
      Ranzenhofer
      
      aye wr (10)
      
      Bonacic
      
      DeFrancisco
      
      LaValle
      
      Lanza
      
      Leibell
      
      Maziarz
      
      Nozzolio
      
      Saland
      
      Volker
      
      Winner
  Apr 13, 2010 - Codes Committee Vote
  S5896
  
  Aye
  
  9
  
  Nay
  
  5
  
  Aye with Reservations
  
  2
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Codes Committee Vote: Apr 13, 2010
      
      aye (9)
      
      Breslin
      
      Duane
      
      Huntley
      
      Klein
      
      Parker
      
      Perkins
      
      Sampson
      
      Schneiderman
      
      Squadron
      
      nay (5)
      
      DeFrancisco
      
      Flanagan
      
      Golden
      
      Lanza
      
      Volker
      
      aye wr (2)
      
      Bonacic
      
      Saland

Bill Amendments

Original

D (Active)

2009-S5896 - Details

Law Section:: Real Property Law
Laws Affected:: Amd §265-b, RP L

2009-S5896 - Summary

Relates to distressed property consultants advertisements.

2009-S5896 - Sponsor Memo

                                 BILL NUMBER:  S5896

 TITLE OF BILL :

An act to amend the real property law, in relation to distressed
property consultants advertisements


 PURPOSE :

This bill requires that distressed property consultants provide
information about the availability of free state-funded services in
their advertisements.

 SUMMARY OF PROVISIONS :

Adds a new subdivision 5 to section 265-b of the real property law
providing that any advertisements for the services of a distressed
property consultant must include a disclaimer that free services are
available and contact information for the state banking department.

 JUSTIFICATION :

This bill would require all companies that offer distressed property
consulting or as defined by the New York State Banking Department to
include a disclaimer alerting consumers that the services that they

provide can be provided for free through housing counselors funded by
New York State. It would also require these companies to provide the
number to the New York State Banking Department as part of the
disclaimer.

With the onset of the subprime lending crisis and the resulting
economic crisis, the nationwide jump in foreclosures and mortgage
defaults has triggered a corresponding rise in the number of predatory
scams targeting financially-strapped homeowners. The federal
government recently is announced a crackdown on loan modification and
foreclosure rescue scams, with the FBI currently targeting more than
2,000 companies allegedly scamming troubled homeowners with "rescue"
offers -- up 400% from five years ago.  Also, a recent Federal Trade
Commission (FTC) investigation of nationwide online and print ads
offering mortgage foreclosure rescue assistance found about 70
separate companies running questionable ads.

In the Spring of 2009, Attorney General Andrew Cuomo announced that
his office has been conducting a statewide investigation into the loan
modification industry with subpoenas to twelve companies that offer
these services to consumers across New York. According to the Attorney
General's investigation, many of these companies lure consumers
through false and misleading tactics, such as using company names and
advertisements that give the false impression that they are affiliated
with a government agency, falsely claiming to have extraordinarily
high success rates - of as much as 100 percent, and falsely claiming
to have a special relationship with the homeowner's lender.
Capitalizing on the current economic downturn and housing crisis,
these companies often scour foreclosure notices and filings and prey
on consumers desperate to save their homes from being foreclosed.
Their solicitations may be in person, by mail, telephone or e-mail, or
via advertisements. Often, these scammers use titles that sound
official, such as "foreclosure or mortgage consultant" or falsely
market themselves as a "foreclosure service" or "foreclosure rescue
company."

By requiring a disclaimer in all advertisements that includes the
number for the new York State Banking Department as well as a reminder
that New York State provides free counseling services, this
legislation will reduce the number of distressed New York State
homeowners who compound their financial difficulties by falling victim
to the misleading advertisements of distressed property consulting
companies.

 LEGISLATIVE HISTORY :

New bill in 2009.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on immediately.

2009-S5896 - Bill Text download pdf

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

                                  5896

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 18, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the real property law, in relation to distressed proper-
  ty consultants advertisements

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

  Section 1. Section 265-b of the real property law is amended by adding
a new subdivision 5 to read as follows:
  5.  DISTRESSED  PROPERTY  CONSULTANTS  ADVERTISEMENTS. (A) IN NEW YORK
STATE, ALL ADVERTISEMENTS DISSEMINATED BY A DISTRESSED PROPERTY CONSULT-
ANT AS DEFINED IN THIS SECTION MUST INCLUDE THE FOLLOWING DISCLAIMER:
IN NEW YORK STATE APPROVED HOUSING COUNSELORS PROVIDE  SIMILAR  SERVICES
FOR  FREE.  A  LIST OF HOUSING COUNSELORS MAY BE FOUND ON THE WEBSITE OF
THE NEW YORK STATE BANKING  DEPARTMENT,  WWW.BANKING.STATE.NY.US  OR  BY
CALLING    THE    BANKING   DEPARTMENT   TOLL-FREE   AT   1-877-BANK-NYS
(1-877-226-5697). YOU ARE ADVISED TO CONSULT WITH  AN  APPROVED  HOUSING
COUNSELOR BEFORE SIGNING ANY CONTRACT.
  (B) ADVERTISEMENTS INCLUDE, BUT ARE NOT LIMITED TO, PRINTED MATERIALS,
RADIO  SCRIPTS,  TELEVISION  SCRIPTS,  LEAFLETS,  FORM LETTERS, PREPARED
SALES TALKS, AND PRESENTATIONS. ALL COMMONLY RECOGNIZED MARKETING  MEDIA
ARE CONSIDERED ADVERTISEMENTS.
  (C)  THE  PROVISIONS  OF  THIS  SECTION  APPLY  TO  ANY ADVERTISEMENTS
INTENDED FOR PRESENTATION, DISTRIBUTION OR  DISSEMINATION  IN  NEW  YORK
STATE  WHEN  SUCH  PRESENTATION,  DISTRIBUTION  OR DISSEMINATION IS MADE
EITHER DIRECTLY OR INDIRECTLY BY OR ON BEHALF OF A  DISTRESSED  PROPERTY
CONSULTANT  AS  DEFINED  IN  THIS  SECTION.  EVERY  DISTRESSED  PROPERTY
CONSULTANT WHO DOES BUSINESS IN THE STATE OF NEW  YORK  SHALL  ESTABLISH
AND  AT  ALL TIMES MAINTAIN CONTROL OVER THE CONTENT, FORM AND METHOD OF
DISSEMINATION OF ALL ADVERTISEMENTS OF ITS SERVICES.
  (D) ADVERTISEMENTS SHALL BE SUFFICIENTLY COMPLETE AND CLEAR  TO  AVOID
DECEPTION OR THE CAPACITY OR TENDENCY TO MISLEAD OR DECEIVE.
  S 2. This act shall take effect immediately.

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

                                                           LBD14323-01-9

co-Sponsors

2009-S5896A - Details

Law Section:: Real Property Law
Laws Affected:: Amd §265-b, RP L

2009-S5896A - Summary

Relates to distressed property consultants advertisements.

2009-S5896A - Sponsor Memo

                                 BILL NUMBER:  S5896A

 TITLE OF BILL :

An act to amend the real property law, in relation to distressed
property consultants advertisements


 PURPOSE :

This bill requires that distressed property consultants provide
information about the availability of free state-funded services in
their advertisements,

 SUMMARY OF PROVISIONS :

Section 1: Adds a new Real Property Law section 265-b (3-a) and
(3-b)to provide that any advertisements, be they in print media or
electronic media, for the services of a distressed property consultant
must include a statement that such services are available and can be
provided for free from certified Housing Counselors.  Further that a
listing of such counselors is available from the NYS Banking
Department.

 JUSTIFICATION :

This bill requires that all companies that offer distressed property
consulting services as defined by law, must include a statement that
alerts consumers that the services that they provide can often be
provided for free through housing counselors funded by New York state.
It also requires that these companies must provide the number of the
New York State Banking Department as part of the consumer disclosure
statement.

With the onset of the subprime lending crisis and the resulting
economic crisis, the nationwide jump in foreclosures and mortgage
defaults has triggered a corresponding rise in the number of predatory
scams targeting financially-strapped homeowners. The federal
government recently announced a crackdown on loan modification and
foreclosure rescue scams.  Further, the FBI is currently targeting
more than 2,000 companies for allegedly scamming troubled homeowners
with "rescue" offers -- up 400% from five years ago. Also, a recent
Federal Trade Commission (FTC) investigation of nationwide online and
print ads offering mortgage foreclosure rescue assistance found that
about 70 separate companies were running questionable ads.

In the Spring of 2009, Attorney General Andrew Cuomo announced that
his office was conducting a statewide investigation into the loan
modification industry. Supoenas were filed against twelve companies
that offer these services to consumers across New York. According to
the Attorney General's investigation, many of these companies lured
consumers through false and misleading tactics, such as using company
names and advertisements that give the false impression that they are
affiliated with a government agency. Further, such advertisements
falsely claim to have extraordinarily high success rates - of as much
as 100 percent, and falsely claimed to have a special relationship
with the homeowner's lender.

Capitalizing on the current economic downturn and housing crisis,
these companies often scour foreclosure notices and filings and prey
on consumers desperate to save their homes from being foreclosed.
Their solicitations may be in person, by mail, telephone or e-mail, or
via advertisements. Often, these scammers use titles that sound
official, such as "foreclosure or mortgage consultant" or falsely
market themselves as a "foreclosure service" or "foreclosure rescue
company."
By requiring a consumer warning statement in all distressed property
consultant advertisements with the phone number of the New York State
Banking Department as well as a reminder that New York State provides
free counseling services, this legislation will reduce the number of
distressed New York State homeowners who compound their financial
difficulties by falling victim to the misleading advertisements of
distressed property consulting companies.

 LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
On the sixtieth day after becoming law.

2009-S5896A - Bill Text download pdf

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

                                 5896--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 18, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Rules  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the real property law, in relation to distressed proper-
  ty consultants advertisements

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

  Section 1. Section 265-b of the real property law is amended by adding
two new subdivisions 3-a and 3-b to read as follows:
  3-A. DISTRESSED PROPERTY CONSULTANT ADVERTISEMENTS. (A) ALL ADVERTISE-
MENTS DISSEMINATED BY A DISTRESSED PROPERTY CONSULTANT MUST  PROMINENTLY
INCLUDE THE FOLLOWING STATEMENT: "IN NEW YORK STATE, HOUSING COUNSELORS,
WHO  ARE  APPROVED BY THE U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
OR THE NEW YORK STATE BANKING DEPARTMENT, MAY PROVIDE THE SAME OR  SIMI-
LAR  SERVICES  AS  A  DISTRESSED PROPERTY CONSULTANT FOR FREE. A LIST OF
APPROVED HOUSING COUNSELORS CAN BE FOUND ON THE NEW YORK  STATE  BANKING
DEPARTMENT  WEBSITE  AT WWW.BANKING.STATE.NY.US OR BY CONTACTING THE NEW
YORK   STATE   BANKING   DEPARTMENT    TOLL-FREE    AT    1-877-BANK-NYS
(1-877-226-5697).  YOU ARE STRONGLY ADVISED TO CONSULT WITH A GOVERNMENT
APPROVED  HOUSING  COUNSELOR  BEFORE  SIGNING  ANY  DISTRESSED  PROPERTY
CONSULTANT  CONTRACT." SUCH STATEMENT, IF DISSEMINATED BY PRINT MEDIA OR
THE INTERNET, MUST BE PRINTED IN AT LEAST TWELVE-POINT BOLD TYPE.
  (B) FOR THE PURPOSES OF THIS  SUBDIVISION,  THE  TERM  "ADVERTISEMENT"
SHALL  INCLUDE, BUT IS NOT LIMITED TO, ALL FORMS OF MARKETING, SOLICITA-
TION, OR DISSEMINATION OF INFORMATION RELATED, DIRECTLY  OR  INDIRECTLY,
TO SECURING OR OBTAINING A CONSULTING CONTRACT OR SERVICES.  FURTHER, IT
SHALL  INCLUDE  ANY AND ALL COMMONLY RECOGNIZED FORMS OF MEDIA MARKETING
VIA TELEVISION, RADIO, PRINT MEDIA, ALL  FORMS  OF  ELECTRONIC  COMMUNI-
CATION  VIA  THE INTERNET, AND ALL PREPARED SALES PRESENTATIONS GIVEN IN
PERSON OR OVER THE INTERNET TO THE GENERAL PUBLIC.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14323-02-9

S. 5896--A                          2

  (C) THE ADVERTISING PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO  ALL
DISTRESSED  PROPERTY  CONSULTANTS  WHO DISSEMINATE ADVERTISEMENTS IN THE
STATE OF NEW YORK OR WHO INTEND TO  DIRECTLY  OR  INDIRECTLY  CONTACT  A
HOMEOWNER WHO HAS PROPERTY LOCATED IN NEW YORK STATE. DISTRESSED PROPER-
TY  CONSULTANTS  SHALL  ESTABLISH AND AT ALL TIMES MAINTAIN CONTROL OVER
THE CONTENT, FORM AND METHOD OF DISSEMINATION OF ALL  ADVERTISEMENTS  OF
ITS SERVICES. FURTHER, ALL ADVERTISEMENTS SHALL BE SUFFICIENTLY COMPLETE
AND  CLEAR  TO  AVOID  THE  POSSIBILITY  OF  DECEPTION OR THE ABILITY TO
MISLEAD OR DECEIVE.
  3-B. THE BANKING DEPARTMENT, IN ITS DISCRETION, MAY CHANGE THE  INFOR-
MATION  THAT  IS STATED TO CONTACT THE BANKING DEPARTMENT IN THE NOTICES
PROVIDED FOR IN SUBPARAGRAPH (VIII)  OF  PARAGRAPH  (A)  OF  SUBDIVISION
THREE, SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION THREE, OR PARA-
GRAPH  (A)  OF  SUBDIVISION  THREE-A  OF THIS SECTION, IF THE WEBSITE OR
PHONE NUMBER OF THE BANKING DEPARTMENT IS ALTERED OR CHANGED.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

co-Sponsors

2009-S5896B - Details

Law Section:: Real Property Law
Laws Affected:: Amd §265-b, RP L

2009-S5896B - Summary

Relates to distressed property consultants advertisements.

2009-S5896B - Sponsor Memo

                                 BILL NUMBER:  S5896B

 TITLE OF BILL :

An act to amend the real property law, in relation to distressed
property consultants advertisements


 PURPOSE :

This bill requires that distressed property consultants provide
information about the availability of free state-funded services in
their advertisements.

 SUMMARY OF PROVISIONS :

Section 1: Adds a new subdivision 3-a to Real Property Law section
265-b to provide that any advertisements, be they in print media or
electronic media, for the services of a distressed property consultant
must include a statement that such services are available and can be
provided for free from certified Housing Counselors.  Further that a
listing of such counselors is available from the NYS Banking
Department.

 JUSTIFICATION :

This bill requires that all companies that offer distressed property
consulting services as defined by law, must include a statement that
alerts consumers that the services that they provide can often be
provided for free through housing counselors funded by New York state.
It also requires that these companies must provide the number of the
New York State Banking Department as part of the consumer disclosure
statement.

With the onset of the subprime lending crisis and the resulting
economic crisis, the nationwide jump in foreclosures and mortgage
defaults has triggered a corresponding rise in the number of predatory
scams targeting financially-strapped homeowners. The federal
government recently announced a crackdown on loan modification and
foreclosure rescue scams.  Further, the FBI is currently targeting
more than 2,000 companies for allegedly scamming troubled homeowners
with "rescue" offers -- up 400% from five years ago. Also, a recent
Federal Trade Commission (FTC) investigation of nationwide online and
print ads offering mortgage foreclosure rescue assistance found that
about 70 separate companies were running questionable ads.

In the Spring of 2009, Attorney General Andrew Cuomo announced that
his office was conducting a statewide investigation into the loan
modification industry. Subpoenas were filed against twelve companies
that offer these services to consumers across New York. According to
the Attorney General's investigation, many of these companies lured
consumers through false and misleading tactics, such as using company
names and advertisements that give the false impression that they are
affiliated with a government agency. Further, such advertisements
falsely claim to have extraordinarily high success rates - of as much
as 100 percent, and falsely claimed to have a special relationship
with the homeowner's lender.

Capitalizing on the current economic downturn and housing crisis,
these companies often scour foreclosure notices and filings and prey
on consumers desperate to save their homes from being foreclosed.
Their solicitations may be in person, by mail, telephone or e-mail, or
via advertisements. Often, these scammers use titles that sound
official, such as "foreclosure or mortgage consultant" or falsely
market themselves as a "foreclosure service" or "foreclosure rescue
company."
By requiring a consumer warning statement in all distressed property
consultant advertisements with the phone number of the New York State
Banking Department as well as a reminder that New York State provides
free counseling services, this legislation will reduce the number of
distressed New York State homeowners who compound their financial
difficulties by falling victim to the misleading advertisements of
distressed property consulting companies.

 LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
On the sixtieth day after becoming law.

2009-S5896B - Bill Text download pdf

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

                                 5896--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 18, 2009
                               ___________

Introduced  by  Sens. KLEIN, C. JOHNSON, KRUEGER, MONTGOMERY, ONORATO --
  read twice and ordered printed, and when printed to  be  committed  to
  the  Committee on Rules -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the real property law, in relation to distressed proper-
  ty consultants advertisements

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

  Section 1. Section 265-b of the real property law is amended by adding
a new subdivision  3-a to read as follows:
  3-A. DISTRESSED PROPERTY CONSULTANT ADVERTISEMENTS. (A) ALL ADVERTISE-
MENTS  DISSEMINATED BY A DISTRESSED PROPERTY CONSULTANT MUST PROMINENTLY
INCLUDE THE FOLLOWING STATEMENT: "IN NEW YORK STATE, HOUSING COUNSELORS,
WHO ARE APPROVED BY THE U.S. DEPARTMENT OF HOUSING &  URBAN  DEVELOPMENT
OR  THE NEW YORK STATE BANKING DEPARTMENT, MAY PROVIDE THE SAME OR SIMI-
LAR SERVICES AS A DISTRESSED PROPERTY CONSULTANT FOR  FREE.  A  LIST  OF
APPROVED  HOUSING  COUNSELORS CAN BE FOUND ON THE NEW YORK STATE BANKING
DEPARTMENT WEBSITE AT WWW.BANKING.STATE.NY.US OR BY CONTACTING  THE  NEW
YORK    STATE    BANKING    DEPARTMENT   TOLL-FREE   AT   1-877-BANK-NYS
(1-877-226-5697). YOU ARE STRONGLY ADVISED TO CONSULT WITH A  GOVERNMENT
APPROVED  HOUSING  COUNSELOR  BEFORE  SIGNING  ANY  DISTRESSED  PROPERTY
CONSULTANT CONTRACT." SUCH STATEMENT, IF DISSEMINATED BY PRINT MEDIA  OR
THE INTERNET, MUST BE PRINTED IN AT LEAST TWELVE-POINT BOLD TYPE.
  (B)  FOR  THE  PURPOSES  OF THIS SUBDIVISION, THE TERM "ADVERTISEMENT"
SHALL INCLUDE, BUT IS NOT LIMITED TO, ALL FORMS OF MARKETING,  SOLICITA-
TION,  OR  DISSEMINATION OF INFORMATION RELATED, DIRECTLY OR INDIRECTLY,
TO SECURING OR OBTAINING A CONSULTING CONTRACT OR SERVICES.  FURTHER, IT
SHALL INCLUDE ANY AND ALL COMMONLY RECOGNIZED FORMS OF  MEDIA  MARKETING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14323-04-0

S. 5896--B                          2

VIA  TELEVISION,  RADIO,  PRINT  MEDIA, ALL FORMS OF ELECTRONIC COMMUNI-
CATION VIA THE INTERNET, AND ALL PREPARED SALES PRESENTATIONS  GIVEN  IN
PERSON OR OVER THE INTERNET TO THE GENERAL PUBLIC.
  (C)  THE ADVERTISING PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ALL
DISTRESSED PROPERTY CONSULTANTS WHO DISSEMINATE  ADVERTISEMENTS  IN  THE
STATE  OF  NEW  YORK  OR  WHO INTEND TO DIRECTLY OR INDIRECTLY CONTACT A
HOMEOWNER WHO HAS PROPERTY LOCATED IN NEW YORK STATE. DISTRESSED PROPER-
TY CONSULTANTS SHALL ESTABLISH AND AT ALL TIMES  MAINTAIN  CONTROL  OVER
THE  CONTENT,  FORM AND METHOD OF DISSEMINATION OF ALL ADVERTISEMENTS OF
ITS SERVICES. FURTHER, ALL ADVERTISEMENTS SHALL BE SUFFICIENTLY COMPLETE
AND CLEAR TO AVOID THE  POSSIBILITY  OF  DECEPTION  OR  THE  ABILITY  TO
MISLEAD OR DECEIVE.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

co-Sponsors

View additional co-sponsors

2009-S5896C - Details

Law Section:: Real Property Law
Laws Affected:: Amd §265-b, RP L

2009-S5896C - Summary

Relates to distressed property consultants advertisements.

2009-S5896C - Sponsor Memo

                                 BILL NUMBER:  S5896C

 TITLE OF BILL :

An act to amend the real property law, in relation to distressed
property consultants advertisements


 PURPOSE :

This bill requires that distressed property consultants provide
information about the availability of free state-funded services in
their advertisements.

 SUMMARY OF PROVISIONS :

Section 1: Adds a new subdivision 3-a to Real Property Law section
265-b to provide that any advertisements, be they in print media or
electronic media, for the services of a distressed property consultant
must include a statement that such services are available and can be
provided for free from certified Housing Counselors.  Further that a
listing of such counselors is available from the NYS Banking
Department.

 JUSTIFICATION :

This bill requires that all companies that offer distressed property
consulting services as defined by law, must include a statement that
alerts consumers that the services that they provide can often be
provided for free through housing counselors funded by New York state.
It also requires that these companies must provide the number of the
New York state Banking Department as part of the consumer disclosure
statement.

With the onset of the subprime lending crisis and the resulting
economic crisis, the nationwide jump in foreclosures and mortgage
defaults has triggered a corresponding rise in the number of predatory
scams targeting financially-strapped homeowners. The federal
government recently announced a crackdown on loan modification and
foreclosure rescue scams.  Further, the FBI is currently targeting
more than 2,000 companies for allegedly scamming troubled homeowners
with "rescue" offers -- up 400% from five years ago. Also, a recent
Federal Trade Commission (FTC) investigation of nationwide online and
print ads offering mortgage foreclosure rescue assistance found that
about 70 separate companies were running questionable ads.

In the Spring of 2009, Attorney General Andrew Cuomo announced that
his office was conducting a statewide investigation into the loan
modification industry. Subpoenas were filed against twelve companies
that offer these services to consumers across New York. According to
the Attorney General's investigation, many of these companies lured
consumers through false and misleading tactics, such as using company
names and advertisements that give the false impression that they are
affiliated with a government agency. Further, such advertisements
falsely claim to have extraordinarily high success rates - of as much
as 100 percent, and falsely claimed to have a special relationship
with the homeowner's lender.

Capitalizing on the current economic downturn and housing crisis,
these companies often scour foreclosure notices and filings and prey
on consumers desperate to save their homes from being foreclosed.
Their solicitations may be in person, by mail, telephone or e-mail, or
via advertisements. Often, these scammers use titles that sound
official, such as "foreclosure or mortgage consultant" or falsely
market themselves as a "foreclosure service" or "foreclosure rescue
company."
By requiring a consumer warning statement in all distressed property
consultant advertisements with the phone number of the New York State
Banking Department as well as a reminder that New York State provides
free counseling services, this legislation will reduce the number of
distressed New York State homeowners who compound their financial
difficulties by falling victim to the misleading advertisements of
distressed property consulting companies.

 LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
On the sixtieth day after becoming law.

2009-S5896C - Bill Text download pdf

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

                                 5896--C

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 18, 2009
                               ___________

Introduced  by  Sens. KLEIN, C. JOHNSON, KRUEGER, MONTGOMERY, ONORATO --
  read twice and ordered printed, and when printed to  be  committed  to
  the  Committee on Rules -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee  --  reported  favorably  from  said
  committee  and  committed  to  the  Committee  on  Codes  -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the real property law, in relation to distressed proper-
  ty consultants advertisements

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

  Section 1. Section 265-b of the real property law is amended by adding
a new subdivision  3-a to read as follows:
  3-A. DISTRESSED PROPERTY CONSULTANT ADVERTISEMENTS. (A) ALL ADVERTISE-
MENTS  DISSEMINATED BY A DISTRESSED PROPERTY CONSULTANT MUST PROMINENTLY
INCLUDE THE FOLLOWING STATEMENT: "IN NEW YORK STATE, HOUSING COUNSELORS,
WHO ARE APPROVED BY THE U.S. DEPARTMENT OF HOUSING &  URBAN  DEVELOPMENT
OR  THE NEW YORK STATE BANKING DEPARTMENT, MAY PROVIDE THE SAME OR SIMI-
LAR SERVICES AS A DISTRESSED PROPERTY CONSULTANT FOR  FREE.  A  LIST  OF
APPROVED  HOUSING  COUNSELORS CAN BE FOUND ON THE NEW YORK STATE BANKING
DEPARTMENT WEBSITE AT WWW.BANKING.STATE.NY.US OR BY CONTACTING  THE  NEW
YORK    STATE    BANKING    DEPARTMENT   TOLL-FREE   AT   1-877-BANK-NYS
(1-877-226-5697). YOU ARE STRONGLY ADVISED TO CONSULT WITH A  GOVERNMENT
APPROVED  HOUSING  COUNSELOR  BEFORE  SIGNING  ANY  DISTRESSED  PROPERTY
CONSULTANT CONTRACT." SUCH STATEMENT, IF DISSEMINATED BY PRINT MEDIA  OR
THE  INTERNET,  SHALL BE CLEARLY AND LEGIBLY PRINTED OR DISPLAYED IN NOT
LESS THAN TWELVE-POINT BOLD TYPE, OR, IF THE ADVERTISEMENT IS PRINTED TO
BE DISPLAYED IN PRINT THAT IS SMALLER THAN TWELVE POINT,  IN  BOLD  TYPE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14323-06-0

S. 5896--C                          2

PRINT  THAT IS NO SMALLER THAN THE PRINT IN WHICH THE TEXT OF THE ADVER-
TISEMENT IS PRINTED OR DISPLAYED.
  (B)  FOR  THE  PURPOSES  OF THIS SUBDIVISION, THE TERM "ADVERTISEMENT"
SHALL INCLUDE, BUT IS NOT LIMITED TO, ALL FORMS OF MARKETING,  SOLICITA-
TION,  OR  DISSEMINATION OF INFORMATION RELATED, DIRECTLY OR INDIRECTLY,
TO SECURING OR OBTAINING A CONSULTING CONTRACT OR SERVICES.  FURTHER, IT
SHALL INCLUDE ANY AND ALL COMMONLY RECOGNIZED FORMS OF  MEDIA  MARKETING
VIA  TELEVISION,  RADIO,  PRINT  MEDIA, ALL FORMS OF ELECTRONIC COMMUNI-
CATION VIA THE INTERNET, AND ALL PREPARED SALES PRESENTATIONS  GIVEN  IN
PERSON OR OVER THE INTERNET TO THE GENERAL PUBLIC.
  (C)  THE ADVERTISING PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ALL
DISTRESSED PROPERTY CONSULTANTS WHO DISSEMINATE  ADVERTISEMENTS  IN  THE
STATE  OF  NEW  YORK  OR  WHO INTEND TO DIRECTLY OR INDIRECTLY CONTACT A
HOMEOWNER WHO HAS PROPERTY LOCATED IN NEW YORK STATE. DISTRESSED PROPER-
TY CONSULTANTS SHALL ESTABLISH AND AT ALL TIMES  MAINTAIN  CONTROL  OVER
THE  CONTENT,  FORM AND METHOD OF DISSEMINATION OF ALL ADVERTISEMENTS OF
ITS SERVICES. FURTHER, ALL ADVERTISEMENTS SHALL BE SUFFICIENTLY COMPLETE
AND CLEAR TO AVOID THE  POSSIBILITY  OF  DECEPTION  OR  THE  ABILITY  TO
MISLEAD OR DECEIVE.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

co-Sponsors

View additional co-sponsors

2009-S5896D (ACTIVE) - Details

Law Section:: Real Property Law
Laws Affected:: Amd §265-b, RP L

2009-S5896D (ACTIVE) - Summary

Relates to distressed property consultants advertisements.

2009-S5896D (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5896D

TITLE OF BILL:

An act
to amend the real property law, in relation to distressed property
consultants advertisements

PURPOSE:

This bill requires that distressed property consultants provide
information about the availability of free state-funded services in
their advertisements.

SUMMARY OF PROVISIONS:

Section 1: Adds a new subdivision 3-a to Real Property Law section
265-b to provide that any advertisements, be they in print media or
electronic media, for the services of a distressed property
consultant must include a statement that such services are available
and can be provided for free from certified Housing Counselors.
Further that a listing of such counselors is available from the NYS
Banking Department.

JUSTIFICATION:

This bill requires that all companies that offer distressed property
consulting services as defined by law, must include a statement that
alerts consumers that the services that they provide can often be
provided for free through housing counselors funded by New York State
and that they should consult an attorney before signing such a
contract. It also requires that these companies must provide the
number of the New York State Banking Department as part of the
consumer disclosure statement.

With the onset of the subprime lending crisis and the resulting
economic crisis, the nationwide jump in foreclosures and mortgage
defaults has triggered a corresponding rise in the number of
predatory scams targeting financially-strapped homeowners. The
federal government recently announced a crackdown on loan
modification and foreclosure rescue scams.
Further, the FBI is currently targeting more than 2,000 companies for
allegedly scamming troubled homeowners with "rescue" offers -- up
400% from five years ago. Also, a recent Federal Trade Commission
(FTC) investigation of nationwide online and print ads offering
mortgage foreclosure rescue assistance found that about 70 separate
companies were running questionable ads.

In the spring of 2009, Attorney General Andrew Cuomo announced that
his office was conducting a statewide investigation into the loan
modification industry. Subpoenas were filed against twelve companies
that offer these services to consumers across New York. According to
the Attorney General's investigation, many of these companies lured
consumers through false and misleading tactics, such as using company
names and advertisements that give the false impression that they are
affiliated with a government agency. Further, such advertisements


falsely claim to have extraordinarily high success rates - of as much
as 100 percent, and falsely claimed to have a special relationship
with the homeowner's lender.

Capitalizing on the current economic downturn and housing crisis,
these companies often scour foreclosure notices and filings and prey
on consumers desperate to save their homes from being foreclosed.
Their solicitations may be in person, by mail, telephone or e-mail,
or via advertisements. Often, these scammers use titles that sound
official, such as "foreclosure or mortgage consultant" or falsely
market themselves as a "foreclosure service" or "foreclosure rescue
company."

By requiring a consumer warning statement in all distressed property
consultant advertisements with the phone number of the New York State
Banking Department as well as a reminder that New York State provides
free counseling services, this legislation will reduce the number of
distressed New York State homeowners who compound their financial
difficulties by falling victim to the misleading advertisements of
distressed property consulting companies.

The amendment from the "C" Print to "D" Print was a minor revision of
the disclosure statement contained in subdivision (3-a) (a) of this
bill.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

On the sixtieth day after becoming law.

2009-S5896D (ACTIVE) - Bill Text download pdf

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

                                 5896--D
    Cal. No. 378

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 18, 2009
                               ___________

Introduced  by  Sens.  KLEIN,  C. JOHNSON, KRUEGER, MONTGOMERY, ONORATO,
  SAVINO -- read twice and ordered  printed,  and  when  printed  to  be
  committed  to  the  Committee  on  Rules -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee  --  recommitted  to the Committee on Judiciary in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted  as  amended  and  recommitted to said committee -- reported
  favorably from said committee and committed to the Committee on  Codes
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee  --  reported  favorably  from  said
  committee,  ordered  to  first  and  second report, ordered to a third
  reading, passed by Senate and delivered  to  the  Assembly,  recalled,
  vote  reconsidered,  restored  to  third  reading, amended and ordered
  reprinted, retaining its place in the order of third reading

AN ACT to amend the real property law, in relation to distressed proper-
  ty consultants advertisements

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

  Section 1. Section 265-b of the real property law is amended by adding
a new subdivision  3-a to read as follows:
  3-A. DISTRESSED PROPERTY CONSULTANT ADVERTISEMENTS. (A) ALL ADVERTISE-
MENTS  DISSEMINATED BY A DISTRESSED PROPERTY CONSULTANT MUST PROMINENTLY
INCLUDE THE FOLLOWING STATEMENT: "IN NEW YORK STATE, HOUSING COUNSELORS,
WHO ARE APPROVED BY THE U.S. DEPARTMENT OF HOUSING &  URBAN  DEVELOPMENT
OR  THE NEW YORK STATE BANKING DEPARTMENT, MAY PROVIDE THE SAME OR SIMI-
LAR SERVICES AS A DISTRESSED PROPERTY CONSULTANT FOR  FREE.  A  LIST  OF
APPROVED  HOUSING  COUNSELORS CAN BE FOUND ON THE NEW YORK STATE BANKING
DEPARTMENT WEBSITE AT WWW.BANKING.STATE.NY.US OR BY CONTACTING  THE  NEW
YORK    STATE    BANKING    DEPARTMENT   TOLL-FREE   AT   1-877-BANK-NYS
(1-877-226-5697).   YOU SHOULD CONSIDER  CONSULTING  AN  ATTORNEY  OR  A
GOVERNMENT-APPROVED  HOUSING COUNSELOR BEFORE SIGNING ANY LEGAL DOCUMENT

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

                                                           LBD14323-09-0

S. 5896--D                          2

CONCERNING A  DISTRESSED  PROPERTY  CONSULTANT."    SUCH  STATEMENT,  IF
DISSEMINATED  BY PRINT MEDIA OR THE INTERNET, SHALL BE CLEARLY AND LEGI-
BLY PRINTED OR DISPLAYED IN NOT LESS THAN TWELVE-POINT BOLD TYPE, OR, IF
THE  ADVERTISEMENT  IS  PRINTED TO BE DISPLAYED IN PRINT THAT IS SMALLER
THAN TWELVE POINT, IN BOLD TYPE PRINT THAT IS NO SMALLER THAN THE  PRINT
IN WHICH THE TEXT OF THE ADVERTISEMENT IS PRINTED OR DISPLAYED.
  (B)  FOR  THE  PURPOSES  OF THIS SUBDIVISION, THE TERM "ADVERTISEMENT"
SHALL INCLUDE, BUT IS NOT LIMITED TO, ALL FORMS OF MARKETING,  SOLICITA-
TION,  OR  DISSEMINATION OF INFORMATION RELATED, DIRECTLY OR INDIRECTLY,
TO SECURING OR OBTAINING A CONSULTING CONTRACT OR SERVICES.  FURTHER, IT
SHALL INCLUDE ANY AND ALL COMMONLY RECOGNIZED FORMS OF  MEDIA  MARKETING
VIA  TELEVISION,  RADIO,  PRINT  MEDIA, ALL FORMS OF ELECTRONIC COMMUNI-
CATION VIA THE INTERNET, AND ALL PREPARED SALES PRESENTATIONS  GIVEN  IN
PERSON OR OVER THE INTERNET TO THE GENERAL PUBLIC.
  (C)  THE ADVERTISING PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ALL
DISTRESSED PROPERTY CONSULTANTS WHO DISSEMINATE  ADVERTISEMENTS  IN  THE
STATE  OF  NEW  YORK  OR  WHO INTEND TO DIRECTLY OR INDIRECTLY CONTACT A
HOMEOWNER WHO HAS PROPERTY LOCATED IN NEW YORK STATE. DISTRESSED PROPER-
TY CONSULTANTS SHALL ESTABLISH AND AT ALL TIMES  MAINTAIN  CONTROL  OVER
THE  CONTENT,  FORM AND METHOD OF DISSEMINATION OF ALL ADVERTISEMENTS OF
ITS SERVICES. FURTHER, ALL ADVERTISEMENTS SHALL BE SUFFICIENTLY COMPLETE
AND CLEAR TO AVOID THE  POSSIBILITY  OF  DECEPTION  OR  THE  ABILITY  TO
MISLEAD OR DECEIVE.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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Senate Bill S5896

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2009-S5896 - Details

2009-S5896 - Summary

2009-S5896 - Sponsor Memo

2009-S5896 - Bill Text download pdf

co-Sponsors

2009-S5896A - Details

2009-S5896A - Summary

2009-S5896A - Sponsor Memo

2009-S5896A - Bill Text download pdf

co-Sponsors

2009-S5896B - Details

2009-S5896B - Summary

2009-S5896B - Sponsor Memo

2009-S5896B - Bill Text download pdf

co-Sponsors

2009-S5896C - Details

2009-S5896C - Summary

2009-S5896C - Sponsor Memo

2009-S5896C - Bill Text download pdf

co-Sponsors

2009-S5896D (ACTIVE) - Details

2009-S5896D (ACTIVE) - Summary

2009-S5896D (ACTIVE) - Sponsor Memo

2009-S5896D (ACTIVE) - Bill Text download pdf

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