Assembly Bill A4804

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

                                  4804

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2009
                               ___________

Introduced  by  M.  of  A. PHEFFER, ZEBROWSKI, LANCMAN, REILLY, MILLMAN,
  KOON, GOTTFRIED, GALEF, CLARK, P. RIVERA, BENEDETTO,  JAFFEE,  FIELDS,
  PEOPLES, KAVANAGH -- Multi-Sponsored by -- M. of A. BENJAMIN, BOYLAND,
  CAHILL,   DESTITO,  DINOWITZ,  FARRELL,  HOYT,  HYER-SPENCER,  LIFTON,
  MAISEL, MARKEY,  McENENY,  N. RIVERA,  ROBINSON,  ROSENTHAL,  SWEENEY,
  TITUS, TOWNS, WEISENBERG -- read once and referred to the Committee on
  Consumer Affairs and Protection

AN ACT to amend the general business law, in relation to debt collection
  requirements

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

  Section 1. Section 600 of the general business law, as added by  chap-
ter 753 of the laws of 1973, is amended to read as follows:
  S  600.  Definitions.  As  used in this article, unless the context or
subject matter otherwise requires:
  1. "BOARD" SHALL MEAN THE CONSUMER PROTECTION BOARD.
  2. "Consumer claim" means any obligation of a natural person  for  the
payment  of  money  or  its  equivalent  which is or is alleged to be in
default and which arises out of a transaction wherein  credit  has  been
offered  or  extended  to  a  natural person, and the money, property or
service which was the subject  of  the  transaction  was  primarily  for
personal,  family or household purposes. The term includes an obligation
of a natural person who is a co-maker, endorser, guarantor or surety  as
well as the natural person to whom such credit was originally extended.
  [2]  3.  "Debtor" means any natural person who owes or who is asserted
to owe a consumer claim.
  [3] 4. "Principal creditor" means any  person,  firm,  corporation  or
organization to whom a consumer claim is owed, due or asserted to be due
or  owed, or any assignee for value of said person, firm, corporation or
organization.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08610-01-9

              

A. 4804                             2

  5. "THIRD PARTY DEBT COLLECTOR" SHALL MEAN ANY  PERSON  WHO  REGULARLY
COLLECTS  OR  ATTEMPTS TO COLLECT, DIRECTLY OR INDIRECTLY, DEBTS OWED OR
DUE OR ASSERTED TO BE OWED OR DUE ANOTHER.
  S 2. The general business law is amended by adding a new section 601-a
to read as follows:
  S  601-A.  DEBT  COLLECTION REQUIREMENTS. 1. IN EVERY NOTICE OF A PAST
DUE DEBT SENT TO A DEBTOR FROM THE PRINCIPAL  CREDITOR  OR  HIS  OR  HER
AGENT, SUCH NOTICE SHALL SEPARATELY STATE:
  (A)  THE  NAME, ADDRESS AND TELEPHONE NUMBER OF THE PRINCIPAL CREDITOR
OR HIS OR HER AGENT;
  (B) THE ORIGINAL AMOUNT OF THE DEBT;
  (C) THE DATE THE DEBT WAS DEEMED IN DEFAULT;
  (D) THE ACCRUED INTEREST ON THE DEBT;
  (E) A COPY OF THE LAST BILL OR NOTICE  OF  COLLECTION  SENT  FROM  THE
PRINCIPAL CREDITOR TO THE DEBTOR; AND
  (F)  IF  APPLICABLE, A COPY OF THE LETTER ADVISING THE DEBTOR THAT HIS
OR HER DEBT HAS BEEN SOLD OR TRANSFERRED.
  2. EVERY PRINCIPAL CREDITOR OR HIS OR HER AGENT SHALL SEND A NOTICE TO
THE LAST KNOWN ADDRESS OF THE DEBTOR ADVISING THE DEBTOR THAT HIS OR HER
DEBT IS BEING SOLD OR TRANSFERRED  TO  AN  AGENT  OR  THIRD  PARTY  DEBT
COLLECTOR  FOR  THE  PURPOSE  OF  DEBT COLLECTION. A COPY OF THIS NOTICE
SHALL ALSO BE SENT TO THE ENTITY OR AGENT TO WHOM THE PRINCIPAL CREDITOR
HAS AGREED TO SELL OR TRANSFER THE DEBT.
  3. THE BOARD SHALL ESTABLISH ANY RULES AND  REGULATIONS  NECESSARY  TO
ADMINISTER THIS SECTION.
  4.  (A)  WHERE  IT  IS  DETERMINED  AFTER  HEARING THAT ANY PERSON HAS
VIOLATED ONE OR MORE PROVISIONS OF THIS SECTION,  THE  DIRECTOR  OF  THE
BOARD,  OR  ANY  PERSON  DEPUTIZED  OR  SO DESIGNATED BY HIM OR HER, MAY
ASSESS A FINE NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH VIOLATION.
  (B) ANY PROCEEDING CONDUCTED PURSUANT TO PARAGRAPH (A) OF THIS  SUBDI-
VISION SHALL BE SUBJECT TO THE STATE ADMINISTRATIVE PROCEDURE ACT.
  (C)  NOTHING  IN  THIS  SUBDIVISION SHALL BE CONSTRUED TO RESTRICT ANY
RIGHT WHICH ANY PERSON MAY HAVE UNDER ANY OTHER  STATUTE  OR  AT  COMMON
LAW.
  S  3.  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.
  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.