Senate Bill S8099

                                BILL NUMBER:S8099

TITLE OF BILL:
An act
to amend the civil practice law and rules, in relation to consumer
credit actions

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of her Local
Courts Advisory Committee.

This measure amends CPLR 3016 to require that a complaint in an action
arising out of a consumer credit transaction plead the last four
digits of the account number of the credit card used to incur the
consumer debt at issue in the action.

Under the CPLR, a "consumer credit transaction" is defined as "a
transaction wherein credit is extended to an individual and the
money, property, or service which is the subject of the transaction
is primarily for personal, family, or household purposes." CPLR 105(f).

Where the action arising out of a consumer credit transaction involves
a credit card, resolution of the dispute and satisfaction of the
outstanding debt raises the issue of closure. Because credit card
debt is sold to third parties and commonly to several debt collectors
serially, it often is impossible for a debtor to identify if the debt
              

is valid or who the original creditor is. It is, therefore, not
uncommon to find a debtor being sued by different debt collectors for
the same debt. In addition, credit card numbers are changed by the
original creditor or debt purchaser so that it appears that there may
be more than one credit card issued to the debtor. As a result, a
debtor who pays off a claim against the original card number will
often find that he or she has a "second" card that needs to be paid.

By requiring that the last four digits of the account number of the
original credit card be pled in the complaint, the consumer-debtor
would be able to verify the obligation and have proof of payment when
the debt is satisfied.
Moreover, by having part of the account number in the complaint, the
court can insist that any stipulation of settlement of the action
contain that information and prevent creditors from suing on the same
debt twice. This measure restricts the use of the credit account
number to the last four digits in order provide enough information to
obtain closure but not so much information as to make the
consumer-debtor vulnerable to identity theft.

This measure, which would have no fiscal impact upon the State, would
take effect on the first day of January after becoming a law and
apply in actions commenced on or after such date.

2010 LEGISLATIVE HISTORY:

None. New proposal.