senate Bill S2432A

2013-2014 Legislative Session

Prohibits fee charges for payment of an account regardless of the method of payment

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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

view actions (11)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 committed to rules
Feb 10, 2014 advanced to third reading
Feb 04, 2014 2nd report cal.
Feb 03, 2014 1st report cal.84
Jan 08, 2014 referred to consumer protection
Jun 21, 2013 committed to rules
Jun 12, 2013 amended on third reading 2432a
May 01, 2013 advanced to third reading
Apr 30, 2013 2nd report cal.
Apr 29, 2013 1st report cal.445
Jan 17, 2013 referred to consumer protection

Votes

view votes

Feb 3, 2014 - Consumer Protection committee Vote

S2432A
9
0
committee
9
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Consumer Protection committee vote details

Consumer Protection Committee Vote: Feb 3, 2014

aye wr (1)

Apr 29, 2013 - Consumer Protection committee Vote

S2432
9
0
committee
9
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: Apr 29, 2013

aye wr (2)

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S2432 - Bill Details

See Assembly Version of this Bill:
A370B
Current Committee:
Law Section:
General Business Law
Laws Affected:
Amd §399-zzz, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
S6728A, A9352A

S2432 - Bill Texts

view summary

Prohibits fee charges for payment of an account regardless of the method of payment.

view sponsor memo
BILL NUMBER:S2432

TITLE OF BILL:
An act
to amend the general business law, in relation to prohibiting fee
charges for payment of an account regardless of the method of payment

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to protect consumers from unfair payment
fees.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would prohibit any person or 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, whether such payment is
made by mail, electronic transfer, telephone authorization, or other
means, unless such payment involves an expedited service by a service
representative of the person, partnership, corporation, association
or other business entity.

JUSTIFICATION:
In recent months, there have been instances of major companies
announcing plans to impose an additional fee on the accounts of
customers that choose certain payment methods, such as one-time
payments made online or over the telephone. Such payment fees
unfairly penalize certain consumers and may disproportionately impact
low- and moderate-income consumers. In today's world of
highly-automated payment systems, the cost of processing payments is
often nominal and considered a standard cost of doing business that
is included in the total rate or amount charged for services. The
recent emergence of proposals that would set payment fees at levels
that appears to be significantly higher than the actual cost of
processing payments has generated thousands of consumer complaints.

During these tough economic times, many consumers are struggling to
pay their bills and must budget very carefully. These consumers
should not be forced to bear the burden of an additional payment
charge, unless expedited service is provided. Under this legislation,
businesses interested in encouraging the use of certain payment
methods may elect to implement incentive-based programs that do not
penalize consumers. Several major companies have successfully
convinced customers to use electronic billing by providing an
incentive to switch from paper billing.

This legislation would expand upon the provisions of section 399-zzz of
the General Business Law, which prohibits businesses from charging
customers an additional rate or fee when the consumer chooses to pay by
United States mail or received a paper billing statement. The bill's
provisions are also consistent with the federal Credit C.A.R.D. Act
of 2009, which similarly restricts the ability of card issuers to
impose payment fees on cardholder accounts.

PRIOR LEGISLATIVE HISTORY:
2012: S. 6728 - Referred to Consumer Affairs


FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.

EFFECTIVE DATE: This act shall take effect on January
1st next succeeding.

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

                                  2432

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sens.  KLEIN, MAZIARZ -- 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, in relation to prohibiting fee
  charges for payment of an account regardless of the method of payment

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

  Section 1. Subdivision 1 of section 399-zzz of  the  general  business
law,  as added by chapter 556 of the laws of 2010, is amended to read as
follows:
  1. (A) Subject to federal law and regulation, no person,  partnership,
corporation, association or other business entity shall charge a consum-
er  an additional rate or fee or a differential in the rate or fee asso-
ciated with payment on an account:
  (I) when the consumer chooses  to  [pay  by  United  States  mail  or]
receive a paper billing statement; OR
  (II)  WHETHER SUCH PAYMENT IS MADE BY MAIL, ELECTRONIC TRANSFER, TELE-
PHONE AUTHORIZATION, OR OTHER MEANS, UNLESS  SUCH  PAYMENT  INVOLVES  AN
EXPEDITED  SERVICE  BY  A SERVICE REPRESENTATIVE OF THE PERSON, PARTNER-
SHIP, CORPORATION, ASSOCIATION OR OTHER BUSINESS ENTITY.
  (B) This subdivision 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.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03106-02-3

Co-Sponsors

S2432A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A370B
Current Committee:
Law Section:
General Business Law
Laws Affected:
Amd §399-zzz, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
S6728A, A9352A

S2432A (ACTIVE) - Bill Texts

view summary

Prohibits fee charges for payment of an account regardless of the method of payment.

view sponsor memo
BILL NUMBER:S2432A

TITLE OF BILL: An act to amend the general business law, in relation
to prohibiting fee charges for payment of an account regardless of the
method of payment

PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to
protect consumers from unfair payment fees.

SUMMARY OF SPECIFIC PROVISIONS: This bill would prohibit any person
or 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, whether such payment is made by mail, electronic transfer,
telephone authorization, or other means, unless such payment involves
an expedited service by a service representative of the person,
partnership, corporation, association or other business entity. This
bill was amended to make technical changes.

JUSTIFICATION: In recent months, there have been instances of major
companies announcing plans to impose an additional fee on the accounts
of customers that choose certain payment methods, such as one-time
payments made online or over the telephone. Such payment fees unfairly
penalize certain consumers and may disproportionately impact low- and
moderate-income consumers. In today's world of highly-automated
payment systems, the cost of processing payments is often nominal and
considered a standard cost of doing business that is included in the
total rate or amount charged for services. The recent emergence of
proposals that would set payment fees at levels that appears to be
significantly higher than the actual cost or processing payments has
generated thousands or consumer complaints.

During these tough economic times, many consumers are struggling to
Pay their bills and must budget very carefully. These consumers should
not be forced to bear the burden of an additional payment charge,
unless expedited service is provided. Under this legislation,
businesses interested in encouraging the use of certain payment
methods may elect to implement incentive-based programs that do not
penalize consumers. Several major companies have successfully
convinced customers to use electronic billing by providing an
incentive to switch from paper billing.

This legislation would expand upon the provisions of section 399-zzz
of the General Business Law, which prohibits businesses from charging
customers an additional rate or fee when the consumer chooses to pay
by United States mail or received a paper billing statement. The
bill's provisions are also consistent with the federal Credit C.R.R.D.
Act Of 2009, which similarly restricts the ability of card issuers to
impose payment fees on cardholder accounts.

PRIOR LEGISLATIVE HISTORY: 2012: S. 6728 - Referred to Consumer
Affairs

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the
State.

EFFECTIVE DATE: This act shall take effect on January 1st next
succeeding.


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

                                 2432--A
    Cal. No. 445

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sens.  KLEIN, MAZIARZ -- read twice and ordered printed,
  and when  printed  to  be  committed  to  the  Committee  on  Consumer
  Protection -- reported favorably from said committee, ordered to first
  and  second  report,  ordered  to a third reading, amended and ordered
  reprinted, retaining its place in the order of third reading

AN ACT to amend the general business law, in relation to prohibiting fee
  charges for payment of an account regardless of the method of payment

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

  Section  1.  Subdivision  1 of section 399-zzz of the general business
law, as added by chapter 556 of the laws of 2010, is amended to read  as
follows:
  1.  (A) Subject to federal law and regulation, no person, partnership,
corporation, association or other business entity shall charge a consum-
er an additional rate or fee or a differential in the rate or fee  asso-
ciated with payment on an account:
  (I)  when  the  consumer  chooses  to  [pay  by United States mail or]
receive a paper billing statement; OR
  (II) WHETHER SUCH PAYMENT IS MADE BY MAIL, ELECTRONIC TRANSFER, A LIVE
CUSTOMER SERVICE REPRESENTATIVE, TELEPHONE AUTHORIZATION BY MEANS  OF  A
VOICE RESPONSE UNIT OR INTERACTIVE VOICE RESPONSE SYSTEM, OTHER MEANS OR
A  COMBINATION THEREOF, UNLESS SUCH PAYMENT IS EXPEDITED BY SUCH PERSON,
PARTNERSHIP, CORPORATION, ASSOCIATION OR OTHER BUSINESS ENTITY TO CREDIT
SUCH PAYMENT THE SAME DAY OR, IF  THE  PAYMENT  IS  RECEIVED  AFTER  ANY
ESTABLISHED  CUT-OFF  TIME,  THE  NEXT BUSINESS DAY. FOR THE PURPOSES OF
THIS SUBPARAGRAPH, "EXPEDITED" MEANS A RUSH PAYMENT METHOD  OUTSIDE  THE
NORMAL AND USUAL COURSE OF BUSINESS.
  (B)  This  subdivision  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.
  S 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03106-05-3

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