Senate Bill S6661

                                BILL NUMBER:S6661

TITLE OF BILL:
An act
to amend the civil practice law and rules, in relation to requiring
plaintiffs in consumer credit actions involving credit card debt to
state the last four digits of the credit card number in the complaint

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.

An action arising out of a consumer credit transaction concerns "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 is often 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
to provide enough information to obtain closure but not so much
information as to make the consumer-debtor vulnerable to identity
theft.

This measure would have no fiscal impact upon the State. It would take
effect on the first day of January next succeeding the date on which
it shall have become law and shall apply to all actions and
proceedings commenced on or after such effective date.

LEGISLATIVE HISTORY:
None. New proposal.