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

                                  7205

                            I N  S E N A T E

                             March 22, 2010
                               ___________

Introduced  by  Sen.  SAVINO -- 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,  in  relation  to  prohibiting
  debt  collectors  from collecting or attempting to collect a debt owed
  by a deceased debtor that is known to be deceased

  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.  PROHIBITED PRACTICES REGARDING DECEASED DEBTORS. 1. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
MEANINGS:
  (A) "DEBT" MEANS ANY OBLIGATION OR ALLEGED OBLIGATION OF A CONSUMER TO
PAY  MONEY  ARISING  OUT  OF A TRANSACTION IN WHICH THE MONEY, PROPERTY,
INSURANCE, OR SERVICES WHICH ARE THE  SUBJECT  OF  THE  TRANSACTION  ARE
PRIMARILY  FOR  PERSONAL,  FAMILY, OR HOUSEHOLD PURPOSES, WHETHER OR NOT
SUCH OBLIGATION HAS BEEN REDUCED TO JUDGMENT; AND
  (B) "DEBT COLLECTOR" MEANS AN INDIVIDUAL WHO, AS PART OF  HIS  OR  HER
JOB, REGULARLY COLLECTS OR ATTEMPTS 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.
  2.    ANY  PRINCIPAL CREDITOR OR DEBT COLLECTOR COMMUNICATING WITH ANY
PERSON FOR THE PURPOSE OF ATTEMPTING TO COLLECT A  DEBT  INCURRED  BY  A
DECEASED  DEBTOR  THAT SUCH PERSON IS NOT LEGALLY REQUIRED TO PAY, SHALL
DISCLOSE TO SUCH PERSON THAT HE OR SHE IS NOT LEGALLY  REQUIRED  TO  PAY
SUCH  DEBT. IN ADDITION, SUCH PRINCIPAL CREDITOR OR DEBT COLLECTOR SHALL
NOT MAKE ANY MISREPRESENTATION ABOUT SUCH  PERSON'S  OBLIGATION  TO  PAY
SUCH DEBT.
  3.  (A)  IN  ADDITION  TO  ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY
GENERAL PURSUANT TO THIS ARTICLE, ANY PERSON AGGRIEVED BY REASON OF  ANY
VIOLATION  OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO
ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER  HIS  OR  HER
ACTUAL  DAMAGES  OR  FIVE HUNDRED DOLLARS, WHICHEVER IS GREATER, OR BOTH

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

                                                           LBD10546-08-0

S. 7205                             2

SUCH ACTIONS. IN THE CASE OF ANY SUCCESSFUL ACTION TO ENFORCE THE  FORE-
GOING  LIABILITY,  THE  COURT MAY AWARD THE COSTS OF THE ACTION TOGETHER
WITH REASONABLE ATTORNEY'S FEES. EACH COMMUNICATION THAT FAILS TO COMPLY
WITH  THE  REQUIREMENTS  OF  THIS  SECTION  SHALL  CONSTITUTE A SEPARATE
VIOLATION.
  (B) ANY CONSUMER ENTITLED TO BRING AN ACTION  UNDER  THIS  SUBDIVISION
MAY,  IF THE UNLAWFUL ACT OR PRACTICE HAS CAUSED DAMAGE TO OTHER CONSUM-
ERS SIMILARLY SITUATED, BRING AN ACTION ON BEHALF OF  HIMSELF  AND  SUCH
OTHER  CONSUMERS  TO  RECOVER DAMAGES OR OBTAIN OTHER RELIEF AS PROVIDED
FOR IN THIS SUBDIVISION. ANY ACTION BROUGHT UNDER THIS SUBDIVISION SHALL
COMPLY WITH ARTICLE NINE OF THE CIVIL PRACTICE LAW AND RULES.
  S 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]
WILLFULLY  VIOLATES  the  terms  of  this article [shall be], EXCEPT THE
TERMS CONTAINED IN SECTION SIX HUNDRED ONE-A OF THIS ARTICLE, IS  guilty
of  a  misdemeanor,  and  each such violation shall be deemed a separate
offense.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.