senate Bill S633

2013-2014 Legislative Session

Relates to creating a forty-eight hour grace period from due date of credit card bill

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Archive: Last Bill Status - STRICKEN


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 14, 2013 recommit, enacting clause stricken
Jan 09, 2013 referred to consumer protection

S633 - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add ยง515-a, Gen Bus L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1215
2009-2010: S3769

S633 - Bill Texts

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Relates to creating a forty-eight hour grace period from due date of credit card bill.

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BILL NUMBER:S633

TITLE OF BILL:
An act
to amend the general business law, in relation to creating a forty-eight
hour grace period from the due date of a credit card bill

PURPOSE OR GENERAL IDEA OF BILL:
To allow for a grace period of
forty-eight hours from the due date of a credit card bill payment so
to give the payment ample time to arrive via mail or electronic
transfer.

SUMMARY OF SPECIFIC PROVISIONS:
The general business law is amended
to add new section 515-a: allows for a forty-eight hour grace period
for which the issuer of a credit card cannot impose or modify any
charges related to the annual percentage rate (APR), fees for
issuance of availability, minimum finance charges, transaction
charges, cash advance fees, renewal fees, over-the-limit fees, or any
other fee or rate related to use of a credit card for forty-eight
hours.

A violation of section 515-a is deemed a deceptive act and a civil
penalty of up to one thousand dollars can be imposed. Each
subsequent violation can impose a penalty of up to two-thousand
dollars.

JUSTIFICATION:
Credit card bills are usually paid by mail or
electronic deposit. Because of the processing involved when a payment
is received by the credit card issuer and the time it takes for mail
to arrive, a bill arriving on time may not be processed before the
due date. When this happens the credit card issuer charges a
retributive late fee and raises special interest rates on the
customer, when the issuer is at fault. The forty-eight hour grace
period protects the consumer from late fees and rate changes when
the consumer is not at fault.

PRIOR LEGISLATIVE HISTORY:
This legislation was previously introduced.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
The first of January next succeeding the date on which
it shall have become a law.

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

                                   633

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. STAVISKY -- 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  creating  a
  forty-eight hour grace period from the due date of a credit card bill

  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
515-a to read as follows:
  S 515-A. GRACE PERIOD FOR FEES AND CHARGES. 1. ISSUERS OF CREDIT CARDS
SHALL NOT IMPOSE OR MODIFY ANY CHARGES RELATED TO THE ANNUAL  PERCENTAGE
RATE, FEES FOR ISSUANCE OF AVAILABILITY, MINIMUM FINANCE CHARGES, TRANS-
ACTION CHARGES, CASH ADVANCE FEES, RENEWAL FEES, OVER-THE-LIMIT FEES, OR
ANY  OTHER  FEE  OR RATE RELATED TO USE OF A CREDIT CARD FOR A PERIOD OF
FORTY-EIGHT HOURS FROM THE DUE DATE OF A CREDIT CARD BILL FOR ALL NEW OR
RENEWED CREDIT CARD ACCOUNTS CREATED ON OR AFTER THE EFFECTIVE  DATE  OF
THIS SECTION.
  2. (A) EVERY VIOLATION OF THIS SECTION SHALL BE DEEMED A DECEPTIVE ACT
AND  PRACTICE  SUBJECT TO ENFORCEMENT UNDER ARTICLE TWENTY-TWO-A OF THIS
CHAPTER. IN EVERY CASE WHERE THE COURT SHALL DETERMINE THAT A  VIOLATION
OF  THIS SECTION HAS OCCURRED, IT MAY IMPOSE A CIVIL PENALTY OF NOT MORE
THAN ONE THOUSAND DOLLARS FOR SUCH VIOLATION, AND  MAY  IMPOSE  A  CIVIL
PENALTY  OF  NOT  MORE  THAN  TWO  THOUSAND  DOLLARS FOR EACH SUBSEQUENT
VIOLATION.
  (B) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO RESTRICT  ANY  RIGHT
WHICH ANY PERSON MAY HAVE UNDER ANY OTHER STATUTE OR THE COMMON LAW.
  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.
                                                           LBD03567-01-3

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