senate Bill S73

2011-2012 Legislative Session

Requires debt collectors to send consumers a written notice of their rights under state law along with their debt collection correspondence

download bill text pdf

Sponsored By

Archive: Last Bill Status -


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

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Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 12, 2012 committee discharged and committed to rules
Mar 08, 2012 notice of committee consideration - requested
Jan 04, 2012 referred to consumer protection
Jan 05, 2011 referred to consumer protection

S73 - Details

Law Section:
General Business Law
Laws Affected:
Add §601-a, amd §602, Gen Bus L; amd §553, Exec L
Versions Introduced in 2009-2010 Legislative Session:
S3797, S7303A

S73 - Summary

Requires debt collectors to send consumers a written notice of their rights under state law along with their initial debt collection correspondence; such notice would contain information such as who and when a principal creditor may contact a debtor about the debt owed as well as the fact that a principal creditor cannot disclose information affecting a consumer debtor's reputation for creditworthiness if the principal creditor knows or has reason to know such information is false; applies to consumer rather than commercial debts.

S73 - Sponsor Memo

S73 - Bill Text download pdf

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

                                   73

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. PERALTA -- 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  and  the  executive  law,  in
  relation to debt collection notices

  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.  DEBT  COLLECTION  NOTICE TO CONSUMERS.   1. AS USED IN THIS
SECTION, THE FOLLOWING TERM SHALL HAVE THE FOLLOWING MEANING:
  "DEBT COLLECTION AGENCY" SHALL MEAN  A  PERSON,  FIRM  OR  CORPORATION
ENGAGED  IN  BUSINESS,  THE  PRINCIPAL  PURPOSE OF WHICH IS TO REGULARLY
COLLECT OR ATTEMPT 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.
  THE  TERM  DOES NOT INCLUDE: (I) ANY OFFICER OR EMPLOYEE OF A CREDITOR
WHILE, IN THE NAME OF THE CREDITOR, COLLECTING DEBTS FOR SUCH CREDITOR;
  (II) ANY  PERSON WHILE ACTING AS  A DEBT COLLECTION AGENCY FOR ANOTHER
PERSON, BOTH OF WHOM ARE RELATED BY COMMON OWNERSHIP  OR  AFFILIATED  BY
CORPORATE CONTROL, IF THE PERSON ACTING AS A DEBT COLLECTION AGENCY DOES
SO  ONLY  FOR  PERSONS TO WHOM IT IS SO RELATED OR AFFILIATED AND IF THE
PRINCIPAL BUSINESS OF SUCH PERSON IS NOT THE COLLECTION OF DEBTS;
  (III) ANY PERSON WHILE SERVING OR ATTEMPTING TO SERVE LEGAL PROCESS ON
ANY OTHER PERSON IN CONNECTION WITH  THE  JUDICIAL  ENFORCEMENT  OF  ANY
DEBT;
  (IV) ANY ATTORNEY-AT-LAW OR LAW FIRM COLLECTING A DEBT IN SUCH CAPACI-
TY  ON  BEHALF  OF  AND IN THE NAME OF A CLIENT THROUGH LEGAL ACTIVITIES
SUCH AS THE FILING AND PROSECUTION OF LAWSUITS TO REDUCE DEBTS TO  JUDG-
MENTS,  BUT NOT ANY ATTORNEY-AT-LAW OR LAW FIRM WHO REGULARLY ENGAGES IN

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

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