senate Bill S4301

Signed By Governor
2013-2014 Legislative Session

Prohibits the unsolicited mailing of convenience checks to consumers without the express consent of the consumer

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Archive: Last Bill Status Via A3601 - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Nov 13, 2013 signed chap.467
Nov 01, 2013 delivered to governor
May 07, 2013 returned to assembly
passed senate
3rd reading cal.449
substituted for s4301
May 07, 2013 substituted by a3601
May 01, 2013 advanced to third reading
Apr 30, 2013 2nd report cal.
Apr 29, 2013 1st report cal.449
Mar 20, 2013 referred to consumer protection

Votes

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Apr 29, 2013 - Consumer Protection committee Vote

S4301
10
0
committee
10
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Consumer Protection committee vote details

Consumer Protection Committee Vote: Apr 29, 2013

aye wr (1)

Co-Sponsors

S4301 - Bill Details

See Assembly Version of this Bill:
A3601
Law Section:
General Business Law
Laws Affected:
Add ยง520-d, Gen Bus L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A2995A
2009-2010: A7500

S4301 - Bill Texts

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Prohibits the unsolicited mailing of convenience checks to consumers without the express consent of the consumer.

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BILL NUMBER:S4301

TITLE OF BILL: An act to amend the general business law, in relation
to prohibiting the unsolicited mailing of convenience checks to
consumers

PURPOSE OR GENERAL IDEA OF BILL:

This bill will discourage banks and other financial institutions from
sending out unsolicited checks to consumers and protect consumers from
the fraudulent use of such checks.

SUMMARY OF SPECIFIC PROVISIONS: The general business law is amended by
adding a new section 520-d. This section provides that consumers sent
convenience checks by credit or debit card issuers shall not be liable
for the use of such checks unless the consumer has accepted the check
by using such check.

JUSTIFICATION:

When banks send out unsolicited checks, consumers are unable to know
whether or not these unrequested checks have come in the mail. These
checks are easy targets for mail theft. Thieves may falsely use these
checks, and it may be some time before the consumer becomes aware that
these were stolen and fraudulently used. By this time, the consumer's
credit and bank account balance may have taken a serious hit. This
bill would ensure that consumers are not held liable for fraudulent
use of such checks.

PRIOR LEGISLATIVE HISTORY:

A2995 (2011-2012)
A7500 (2009-2010)

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  4301

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 20, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 the
  unsolicited mailing of convenience checks to consumers

  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
520-d to read as follows:
  S  520-D. UNSOLICITED CONVENIENCE CHECKS.  1. AS USED IN THIS SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "CHECK" MEANS ANY NEGOTIABLE INSTRUMENT,  AS  DEFINED  BY  SECTION
3-104 OF THE UNIFORM COMMERCIAL CODE, THAT HAS IMPRINTED ON IT THE HOLD-
ER'S  NAME  AND THE DEPOSITORY INSTITUTION'S NAME, LOCATION, AND ROUTING
NUMBER.
  (B) "UNSOLICITED CHECK" MEANS ANY CHECK MAILED OR OTHERWISE  DELIVERED
TO  A HOLDER BY AN ISSUER OR AGENT ACTING ON BEHALF OF AN ISSUER FOR THE
PURPOSE OF DRAWING ON AN EXISTING ACCOUNT THAT IS AN EXTENSION OF CREDIT
OR ACTIVATING AN ACCOUNT TO OBTAIN CREDIT OTHER THAN:
  (1) IN RESPONSE TO A REQUEST OR APPLICATION FOR A CHECK OR ACCOUNT; OR
  (2) AS A SUBSTITUTE FOR A CHECK OR ACCOUNT PREVIOUSLY  ISSUED  TO  THE
PERSON TO WHOM THE CHECK IS MAILED OR OTHERWISE DELIVERED.
  2.  NO  HOLDER  IN  WHOSE NAME AN UNSOLICITED CHECK IS ISSUED SHALL BE
LIABLE FOR ANY AMOUNT RESULTING FROM  USE  OF  THAT  CHECK  OR  ACCOUNT,
UNLESS  THE  HOLDER HAS ACCEPTED THE CHECK OR ACCOUNT BY USING THE CHECK
OR ACCOUNT. FAILURE TO DESTROY OR RETURN AN UNSOLICITED CHECK SHALL  NOT
CONSTITUTE ACCEPTANCE OF THE CHECK OR ACCOUNT.
  3.  ANY  AGREEMENT  ENTERED  INTO  BY A HOLDER WHICH WAIVES, LIMITS OR
DISCLAIMS THE RIGHTS SET FORTH IN THIS SECTION SHALL BE VOID AS CONTRARY
TO PUBLIC POLICY.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07754-01-3

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