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Assembly Bill A3820

2009-2010 Legislative Session

Prohibits "universal default clauses"; and prevents credit card issuers from increasing interests upon the holder of such credit card for late payment to creditors

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Archive: Last Bill Status - In Assembly Committee

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2009-A3820 (ACTIVE) - Details

Current Committee:
Assembly Consumer Affairs And Protection
Law Section:
General Business Law
Laws Affected:
Amd §511, redesig §521-f to be §521-h, add §§521-f & 521-g, Gen Bus L

2009-A3820 (ACTIVE) - Summary

Prohibits "universal default clauses" in contract agreements or contracts; prevents credit card issuers from increasing interests upon the holder of such credit card for late payment to other creditors.

2009-A3820 (ACTIVE) - Bill Text download pdf 

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

                                  3820

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2009
                               ___________

Introduced by M. of A. CHRISTENSEN, GREENE, KELLNER, COLTON, MAGNARELLI,
  DelMONTE, MAISEL, HEVESI, PHEFFER, COOK -- Multi-Sponsored by -- M. of
  A.  ALFANO,  BURLING,  CALHOUN, CROUCH, ERRIGO, FARRELL, HIKIND, KOLB,
  MAGEE, McDONOUGH, McENENY, RABBITT, RUSSELL, SAYWARD, SWEENEY,  TOWNS,
  WALKER,  WEISENBERG  --  read  once  and  referred to the Committee on
  Consumer Affairs and Protection

AN ACT to amend the general business law,  in  relation  to  prohibiting
  "universal  default  clauses"  in  credit  card agreements and related
  increased interest rates

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

  Section  1.  Section  511  of  the  general business law is amended by
adding a new subdivision 11 to read as follows:
  11. "UNIVERSAL DEFAULT CLAUSE" MEANS ANY CLAUSE OR PROVISION  INCLUDED
WITHIN  A  CREDIT  CARD  AGREEMENT OR CONTRACT WHICH ALLOWS AN ISSUER TO
INCREASE THE INTEREST RATE ON SUCH ISSUER'S CREDIT CARD IF A  HOLDER  IS
LATE WITH A PAYMENT TO ANOTHER CREDIT CARD ISSUER OR CREDITOR.
  S 2. Section 521-f of the general business law is redesignated section
521-h and two new sections 521-f and 521-g are added to read as follows:
  S  521-F.  PROHIBITION  OF  UNIVERSAL  DEFAULT CLAUSES. NO ISSUER OF A
CREDIT CARD SHALL INCLUDE IN  SUCH  ISSUER'S  CREDIT  CARD  CONTRACT  OR
AGREEMENT  A  "UNIVERSAL  DEFAULT CLAUSE" WHICH INCREASES INTEREST RATES
UPON THE HOLDER OF SUCH CREDIT CARD FOR LATE PAYMENT TO  ANOTHER  CREDIT
CARD ISSUER OR CREDITOR.
  S 521-G. PROHIBITION OF INCREASED INTEREST RATES. NO ISSUER OF A CRED-
IT  CARD  SHALL  INCREASE THE INTEREST RATE UPON A CREDIT CARD HOLDER IF
SUCH HOLDER IS LATE WITH A PAYMENT TO  ANOTHER  CREDIT  CARD  ISSUER  OR
CREDITOR,  UNLESS SUCH HOLDER IS ALSO LATE WITH A CREDIT CARD PAYMENT TO
SUCH ISSUER.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01941-01-9

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