Senate Bill S3317

2013-2014 Legislative Session

Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family and household members

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to consumer protection
Jan 31, 2013	referred to consumer protection

co-Sponsors

2013-S3317 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §601-a, amd §600, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5046
2011-2012: S3281
2015-2016: S2032
2017-2018: S3491

2013-S3317 (ACTIVE) - Summary

Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family; requires such disclosure be both verbal and written.

2013-S3317 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3317

TITLE  OF BILL:  An act to amend the general business law, in relation
to disclosure by principal creditors and debt collection  agencies  of
the  legal  obligations  of  a  deceased debtor's family and household
members

PURPOSE OR GENERAL IDEA OF BILL:  This bill would  require  that  debt
collection  agencies  that are attempting to collect outstanding debts
of deceased. individuals from surviving family and  household  members
inform  them,  both  orally  and in writing, that they are not legally
obligated to repay the debts of the deceased.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the general business law by adding  a  new  section
601-a.  This section requires that all principal creditors and/or debt
collection agencies must disclose to any relative or household  member
of  a  deceased  debtor  that  is  contacted that he or she may not be
legally  required  to  repay  such  deceased  debtor's   debts.   This
disclosure  must  be  made  both  orally and in writing. Any aggrieved
person may bring an action against such a practice and recover a civil
penalty. Class actions to recover damages are specifically authorized.

Section two amends section 600 of the general business law by adding a
new subdivision 4. This section defines 'debt collection agency'.

Section three sets out the effective date.

JUSTIFICATION:  Recent investigations have shown that debt  collection
companies  often pursue payments from relatives of deceased debtors. A
New York Times article described the practices of  a  debt  collection
agency  whose  agents are specially trained to employ "empathic active
listening" techniques to comfort grieving families while  luring  them
into  paying the deceased's debts. This may be a violation of the Fair
Debt Collection Practices  Act  since  this  law  prevents  collection
companies   from   contacting  anyone  other  than  the  debtor  about
outstanding bills.   Even  if  this  practice  is  not  illegal,  this
legislation  will  ensure  that debt collectors are required to notify
the relatives or household members that they contact that they have no
legal obligation to pay off the debt of the deceased.  As  it  stands,
all  relatives  of  deceased debtors are not required by law to assume
self loved  ones'  debts  but  collection  agencies  often  omit  this
information   when   they  ask  the  relatives  to  make  payments  on
outstanding bills.

PRIOR LEGISLATIVE HISTORY:; 2009-10: S.5046A -  Referred  to  Consumer
Protection

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  This act shall take effect on the ninetieth day after
it shall have become law.

2013-S3317 (ACTIVE) - Bill Text download pdf

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

                                  3317

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 31, 2013
                               ___________

Introduced  by Sens. HASSELL-THOMPSON, KRUEGER -- 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  disclosure  by
  principal  creditors  and  debt collection agencies of the legal obli-
  gations of a deceased debtor's family and household members

  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.  DISCLOSURE  BY  PRINCIPAL  CREDITORS AND/OR DEBT COLLECTION
AGENCIES. 1. ALL PRINCIPAL CREDITORS  AND/OR  DEBT  COLLECTION  AGENCIES
SHALL  DISCLOSE TO ANY RELATIVE OR HOUSEHOLD MEMBER OF A DECEASED DEBTOR
THAT IS CONTACTED THAT HE OR SHE MAY NOT BE LEGALLY  REQUIRED  TO  REPAY
SUCH  DECEASED  DEBTOR'S  DEBTS.    IN ADDITION, THE PRINCIPAL CREDITORS
AND/OR DEBT COLLECTION AGENCIES SHALL  NOT  MAKE  ANY  MISREPRESENTATION
ABOUT THE FAMILY MEMBER'S OBLIGATION TO PAY SUCH DEBTS.
  2.  DISCLOSURE REQUIRED UNDER SUBDIVISION ONE OF THIS SECTION SHALL BE
MADE BOTH ORALLY AND IN WRITING.
  3. IN ADDITION TO ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY  GENERAL
PURSUANT  TO  THIS  ARTICLE, ANY AGGRIEVED PERSON MAY BRING AN ACTION TO
ENJOIN SUCH UNLAWFUL PRACTICE AND TO RECOVER A  CIVIL  PENALTY  OF  FIVE
THOUSAND  DOLLARS  FOR EACH VIOLATION, TOGETHER WITH ANY ACTUAL DAMAGES.
THE COURT SHALL AWARD REASONABLE ATTORNEY FEES AND COSTS TO A PREVAILING
PLAINTIFF. FOR PURPOSES OF THIS SECTION, EACH COMMUNICATION  THAT  FAILS
TO COMPLY WITH THIS SECTION SHALL CONSTITUTE A SEPARATE VIOLATION. CLASS
ACTIONS  TO  RECOVER  THE  DAMAGES SET FORTH IN THIS SECTION ARE SPECIF-
ICALLY AUTHORIZED.
  S 2. Section 600 of the general business law is amended  by  adding  a
new subdivision 4 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06432-01-3

S. 3317                             2

  4.  "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: (A) OWED OR DUE OR ASSERTED TO BE
OWED OR DUE TO ANOTHER; OR (B) OBTAINED BY, OR ASSIGNED TO, SUCH PERSON,
FIRM  OR  CORPORATION,  THAT ARE IN DEFAULT WHEN OBTAINED OR ACQUIRED BY
SUCH PERSON, FIRM OR CORPORATION.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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Senate Bill S3317

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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co-Sponsors

2013-S3317 (ACTIVE) - Details

2013-S3317 (ACTIVE) - Summary

2013-S3317 (ACTIVE) - Sponsor Memo

2013-S3317 (ACTIVE) - Bill Text download pdf

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Sponsored By

Ruth Hassell-Thompson

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Actions

co-Sponsors

Liz Krueger

2013-S3317 (ACTIVE) - Details

2013-S3317 (ACTIVE) - Summary

2013-S3317 (ACTIVE) - Sponsor Memo

2013-S3317 (ACTIVE) - Bill Text download pdf

Comments