Senate Bill S7296A

                                BILL NUMBER:S7296A

TITLE OF BILL:
An act
to amend the general business law, in relation to prohibiting
an additional fee or rate to be charged
in certain circumstances

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to prohibit businesses from imposing an
additional rate or fee on the account of a consumer who chooses to
receive paper billing statements or pay by United States mail.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would prohibit any person,
partnership, corporation, association or other business entity from
charging a consumer an additional rate or fee or a differential in
the rate or fee associated with payment on an account when the
consumer chooses to pay by United States mail or receive a paper
billing statement.

The bill stipulates that its provisions shall not be construed to
prohibit a person, partnership, corporation, association or other
business entity from offering consumers a credit or other incentive
to elect a specific payment or billing option.

              

Violations would be deemed a deceptive act and practice subject to
enforcement under Article 22-A of the General Business Law.

JUSTIFICATION:
In recent months, there have been instances of major companies
proposing to impose an additional fee on the accounts of customers
that choose to receive a paper bill or pay by United States mail.
Such paper billing and payment fees unfairly impact consumers that do
not have Internet access in their homes, as well as, those that are
uncomfortable using the Internet, including many senior citizens and
those concerned about personal privacy.

Paper billing and payment fees disproportionately affect low-income
consumers, who are less likely to have access to the Internet.
Furthermore, such policies impose an additional burden on those
customers who choose to file their billing statements for later
reference, as such customers will be forced to bear the cost of
printing electronic billing statements on their home printer.

While the environmental benefits of electronic billing and payment are
clear, a better approach to reducing paper use in this area is
available. Several major companies have successfully reduced paper
usage by
offering customers an incentive to switch to electronic billing and
payment.

This legislation would expand upon the provisions of Section 702 of
the General Business Law, which prohibit creditors from charging
customers an additional rate or fee when the consumer chooses to pay
by United States mail.


PRIOR LEGISLATIVE HISTORY:
New bill.

EFFECTIVE DATE:
180 days after it shall have become a law.