senate Bill S6276B

2011-2012 Legislative Session

Requires transmitters of money to provide a certain warning to consumers

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 08, 2012 print number 6276b
amend and recommit to rules
Apr 17, 2012 print number 6276a
amend and recommit to rules
Mar 12, 2012 committee discharged and committed to rules
Mar 08, 2012 notice of committee consideration - requested
Jan 19, 2012 referred to banks

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

view additional co-sponsors

S6276 - Bill Details

See Assembly Version of this Bill:
A8928B
Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §652-c, Bank L
Versions Introduced in 2011-2012 Legislative Session:
A8928, A8928B

S6276 - Bill Texts

view summary

Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

view sponsor memo
BILL NUMBER:S6276

TITLE OF BILL:
An act
to amend the banking law, in relation to requiring transmitters of money
to provide a certain warning to consumers

PURPOSE OR GENERAL IDEA OF BILL:
This bill would require a transmitter of money to provide a warning
about fraud to consumers.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this act would amend the banking law by adding a new
section, requiring a person engaged in the business of receiving
money for transmission or transmitting money to clearly and
prominently warn the consumers about fraud prior to completing the
transfer.

Section 2 makes this act effective on the one hundred eightieth day
after it shall have become a law.

JUSTIFICATION:
Consumer fraud hurts everyone regardless of age. The elderly, however,
are especially vulnerable to scams that call for the transferring of
money.
People receive calls or emails informing them that they won the
lottery, that they have been offered a great deal, or that they can
apply for a credit card if they simply transfer funds to an
unspecified address. People have lost hundreds of thousands of
dollars when they electronically transfer funds to individuals they
do not know. This bill would require a financial institution to alert
their customers to the dangers of consumer fraud. It would help them
make better decisions before things go terribly wrong.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6276

                            I N  S E N A T E

                            January 19, 2012
                               ___________

Introduced  by Sen. GIANARIS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to  requiring  transmitters
  of money to provide a certain warning to consumers

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

  Section 1. The banking law is amended by adding a new section 652-c to
read as follows:
  S 652-C. REQUIRED WARNING. 1.   A PERSON ENGAGED IN  THE  BUSINESS  OF
RECEIVING  MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC-
TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER  PERSON,  BUSI-
NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
THE  TRANSMISSION  PRIOR  TO  COMPLETING  SUCH  TRANSMISSION OF FUNDS AS
FOLLOWS:
  "WARNING: PLEASE DO NOT FALL VICTIM TO CONSUMER FRAUD. ARE YOU SENDING
MONEY TO CLAIM LOTTERY WINNINGS? ARE YOU SENDING MONEY BECAUSE YOU  WERE
GUARANTEED  A  CREDIT CARD OR LOAN? ARE YOU RESPONDING TO AN INTERNET OR
PHONE OFFER THAT YOU ARE NOT SURE IS HONEST? ARE YOU  SENDING  MONEY  TO
SOMEONE  YOU  DO  NOT  KNOW  OR WHOSE IDENTITY YOU CANNOT VERIFY? IF SO,
PLEASE ASK THE SALES CLERK OR REPRESENTATIVE TO STOP YOUR TRANSFER RIGHT
AWAY."
  2. FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY"  MEANS:
(I) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN
ELECTRONIC  MEDIUM  (SUCH  AS VIDEO AND INTERACTIVE MEDIA INCLUDING, BUT
NOT LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL)  THE
WARNING  SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE THE
TRANSMISSION OF FUNDS, SHALL BE IN A TYPE SIZE  SUFFICIENTLY  NOTICEABLE
FOR  AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING AND
SHALL BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH  THE
WRITTEN  WARNING  APPEARS;  AND (II) IN ORAL COMMUNICATIONS, THE WARNING
SHALL BE DELIVERED IN A VOLUME AND CADENCE SUFFICIENT  FOR  AN  ORDINARY
CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13850-01-2

S. 6276                             2

LY  THROUGH  ORAL,  WRITTEN  OR  VISUAL MEANS, THE WARNING SHALL BE MADE
THROUGH THE SAME MEANS.
  3.  A  VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL BE PUNISHABLE
BY A CIVIL PENALTY OF NOT  MORE  THAN  FIVE  HUNDRED  DOLLARS  FOR  EACH
VIOLATION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

Co-Sponsors

view additional co-sponsors

S6276A - Bill Details

See Assembly Version of this Bill:
A8928B
Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §652-c, Bank L
Versions Introduced in 2011-2012 Legislative Session:
A8928, A8928B

S6276A - Bill Texts

view summary

Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

view sponsor memo
BILL NUMBER:S6276A

TITLE OF BILL:
An act
to amend the banking law, in relation to requiring transmitters of money
to provide a certain warning to consumers

PURPOSE OR GENERAL IDEA OF BILL:
This bill would require a transmitter of money to provide a warning
about fraud to consumers.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this act would amend the banking law by adding a new
section, requiring a person engaged in the business of receiving
money for transmission or transmitting money to clearly and
prominently warn the consumers about fraud prior to completing the
transfer.

Section 2 makes this act effective on the one hundred eightieth day
after it shall have become a law.

JUSTIFICATION:
Consumer fraud hurts everyone regardless of age. The elderly, however,
are especially vulnerable to scams that call for the transferring of
money.
People receive calls or emails informing them that they won the
lottery, that they have been offered a great deal, or that they can
apply for a credit card if they simply transfer funds to an
unspecified address. People have lost hundreds of thousands of
dollars when they electronically transfer funds to individuals they
do not know. This bill would require a financial institution to alert
their customers to the dangers of consumer fraud. It would help them
make better decisions before things go terribly wrong.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6276--A

                            I N  S E N A T E

                            January 19, 2012
                               ___________

Introduced   by   Sens.   GIANARIS,   ADAMS,   ADDABBO,  AVELLA,  DUANE,
  HASSELL-THOMPSON, KENNEDY, KRUEGER, MONTGOMERY,  OPPENHEIMER,  PARKER,
  STAVISKY,  STEWART-COUSINS -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Banks  --  committee
  discharged  and  said  bill  committed  to  the  Committee on Rules --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to amend the banking law, in relation to requiring transmitters
  of money to provide a certain warning to consumers

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

  Section 1. The banking law is amended by adding a new section 652-c to
read as follows:
  S  652-C.  REQUIRED  WARNING. 1.   A PERSON ENGAGED IN THE BUSINESS OF
RECEIVING MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR  ELEC-
TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
TELEPHONE  OR  ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER PERSON, BUSI-
NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
THE TRANSMISSION PRIOR TO COMPLETING SUCH TRANSMISSION  OF  FUNDS.  SUCH
WARNING SHALL CONTAIN AT THE MINIMUM THE FOLLOWING STATEMENTS:
  (A) "WARNING: DO NOT FALL VICTIM TO CONSUMER FRAUD."
  (B) "ARE YOU SENDING MONEY TO CLAIM LOTTERY WINNINGS?"
  (C)  "ARE  YOU SENDING MONEY BECAUSE YOU WERE GUARANTEED A CREDIT CARD
OR LOAN?"
  (D) "ARE YOU RESPONDING TO AN INTERNET OR PHONE OFFER THAT YOU ARE NOT
SURE IS HONEST?"
  (E) "ARE YOU SENDING MONEY TO SOMEONE YOU DO NOT KNOW OR WHOSE IDENTI-
TY YOU CANNOT VERIFY?"
  (F) "ASK THE SALES CLERK OR REPRESENTATIVE TO STOP YOUR TRANSFER RIGHT
AWAY IF YOU HAVE ANY QUESTIONS OR ARE UNSURE ABOUT THE  NATURE  OF  YOUR
TRANSACTION. IT COULD BE FRAUD."
  2.  FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY" MEANS:
(A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN
ELECTRONIC MEDIUM (SUCH AS VIDEO AND INTERACTIVE  MEDIA  INCLUDING,  BUT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13850-03-2

S. 6276--A                          2

NOT  LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL) THE
WARNING SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE  THE
TRANSMISSION  OF  FUNDS, SHALL BE IN A TYPE SIZE SUFFICIENTLY NOTICEABLE
FOR  AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING AND
SHALL BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH  THE
WRITTEN  WARNING  APPEARS;  AND  (B) IN ORAL COMMUNICATIONS, THE WARNING
SHALL BE DELIVERED IN A VOLUME AND CADENCE SUFFICIENT  FOR  AN  ORDINARY
CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE-
LY  THROUGH  ORAL,  WRITTEN  OR  VISUAL MEANS, THE WARNING SHALL BE MADE
THROUGH THE SAME MEANS.
  3. A VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL  BE  PUNISHABLE
BY  A  CIVIL  PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR THE
FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

Co-Sponsors

view additional co-sponsors

S6276B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A8928B
Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §652-c, Bank L
Versions Introduced in 2011-2012 Legislative Session:
A8928, A8928B

S6276B (ACTIVE) - Bill Texts

view summary

Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

view sponsor memo
BILL NUMBER:S6276B

TITLE OF BILL:
An act to amend the banking law, in relation to requiring transmitters
of money to provide a certain warning to consumers

PURPOSE OR GENERAL IDEA OF BILL:
This bill would require a transmitter of money to provide a warning
about fraud to consumers.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this act would amend the banking law by adding a new
section, requiring a person engaged in the business of receiving money
for transmission or transmitting money to clearly and prominently warn
the consumers about fraud prior to completing the transfer.

Section 2 makes this act effective on the one hundred eightieth day
after it shall have become a law.

JUSTIFICATION:
Consumer fraud hurts everyone regardless of age. The elderly, however,
are especially vulnerable to scams that call for the transferring of
money. People receive calls or emails informing them that they won the
lottery, that they have been offered a great deal, or that they can
apply for a credit card if they simply transfer funds to an unspecified
address. People have lost hundreds of thousands of dollars when they
electronically transfer funds to individuals they do not know. This bill
would require a financial institution to alert their customers to the
dangers of consumer fraud. It would help them make better decisions
before things go terribly wrong.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6276--B

                            I N  S E N A T E

                            January 19, 2012
                               ___________

Introduced   by   Sens.   GIANARIS,   ADAMS,   ADDABBO,  AVELLA,  DUANE,
  HASSELL-THOMPSON, KENNEDY, KRUEGER, MONTGOMERY,  OPPENHEIMER,  PARKER,
  STAVISKY,  STEWART-COUSINS -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Banks  --  committee
  discharged  and  said  bill  committed  to  the  Committee on Rules --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to  said committee -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the banking law, in relation to  requiring  transmitters
  of money to provide a certain warning to consumers

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

  Section 1. The banking law is amended by adding a new section 652-c to
read as follows:
  S 652-C. REQUIRED WARNING. 1.   A PERSON ENGAGED IN  THE  BUSINESS  OF
RECEIVING  MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC-
TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER  PERSON,  BUSI-
NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
THE  TRANSMISSION  PRIOR  TO COMPLETING SUCH TRANSMISSION OF FUNDS. SUCH
WARNING SHALL CONTAIN AT THE MINIMUM THE FOLLOWING STATEMENTS:
  (A) "WARNING: DO NOT FALL VICTIM TO CONSUMER FRAUD."
  (B) "ARE YOU SENDING MONEY TO CLAIM LOTTERY WINNINGS?"
  (C) "ARE YOU SENDING MONEY BECAUSE YOU WERE GUARANTEED A  CREDIT  CARD
OR LOAN?"
  (D) "ARE YOU RESPONDING TO AN INTERNET OR PHONE OFFER THAT YOU ARE NOT
SURE IS HONEST?"
  (E) "ARE YOU SENDING MONEY TO SOMEONE YOU DO NOT KNOW OR WHOSE IDENTI-
TY YOU CANNOT VERIFY?"
  (F) "ASK THE SALES CLERK OR REPRESENTATIVE TO STOP YOUR TRANSFER RIGHT
AWAY  IF  YOU  HAVE ANY QUESTIONS OR ARE UNSURE ABOUT THE NATURE OF YOUR
TRANSACTION. IT COULD BE FRAUD."
  2. FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY"  MEANS:
(A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13850-05-2

S. 6276--B                          2

ELECTRONIC  MEDIUM  (SUCH  AS VIDEO AND INTERACTIVE MEDIA INCLUDING, BUT
NOT LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL)  THE
WARNING  SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE THE
TRANSMISSION  OF  FUNDS, SHALL BE IN A TYPE SIZE SUFFICIENTLY NOTICEABLE
FOR AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING  AND
SHALL  BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH THE
WRITTEN WARNING APPEARS; AND (B) IN  ORAL  COMMUNICATIONS,  THE  WARNING
SHALL  BE  DELIVERED  IN A VOLUME AND CADENCE SUFFICIENT FOR AN ORDINARY
CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE-
LY THROUGH ORAL, WRITTEN OR VISUAL MEANS,  THE  WARNING  SHALL  BE  MADE
THROUGH THE SAME MEANS.
  3.  THE  WARNING  REQUIRED BY THIS SECTION SHALL NOT APPLY TO AN ELEC-
TRONIC FUNDS TRANSFER IN WHICH FUNDS ARE  NOT  TRANSFERRED  DIRECTLY  TO
ANOTHER  PERSON  AND  ARE NOT AVAILABLE FOR IMMEDIATE USE, NOR SHALL ANY
WARNING BE REQUIRED IN AN ELECTRONIC FUNDS TRANSFER  MADE  WITH  A  GIFT
CERTIFICATE  AS  DEFINED  IN  SECTION  THREE HUNDRED NINETY-SIX-I OF THE
GENERAL BUSINESS LAW.
  4. A VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL  BE  PUNISHABLE
BY  A  CIVIL  PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR THE
FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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