|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|May 14, 2014||referred to consumer protection|
senate Bill S7421
Archive: Last Bill Status - In Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S7421 - Details
S7421 - Sponsor Memo
BILL NUMBER:S7421 TITLE OF BILL: An act to amend the general business law, in relation to limiting the liability of a debit cardholder for unauthorized use of a debit card PURPOSE OR GENERAL IDEA OF BILL: To limit the liability of a debit card- holder in the event an unauthorized use of the card occurs as a result of fraud or theft. SUMMARY OF PROVISIONS: Amends Section 512 of the general business law as amended by chapter 556 of the laws of 1987 to require that a cardholder shall be liable for the unauthorized use of a debit card only if: -the card is a debit card the holder has used, received, or requested, or authorized another to use. -the liability of the cardholder does not exceed fifty dollars - the card issuer gives the holder adequate notice of the potential liability -the issuer has provided the holder with a means by which to inform the issuer of the loss or theft of the card -the unauthorized use occurs before the issuer is informed of the loss
S7421 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7421 I N S E N A T E May 14, 2014 ___________ Introduced by Sen. SANDERS -- 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 limiting the liability of a debit cardholder for unauthorized use of a debit card THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 512 of the general business law, as amended by chapter 556 of the laws of 1987, is amended to read as follows: S 512. Limitation of liability for unauthorized use of a credit card or a debit card. 1. A provision which imposes liability upon a holder for a cash advance or loan or for the purchase or lease of property or services obtained by the unauthorized use of a credit card or a debit card shall not be enforceable to the extent that it imposes a greater liability upon the holder than is imposed upon the holder of a credit card under the provisions of the act of congress entitled "Truth in Lending Act" and the regulations thereunder, as such act and regulations may from time to time be amended. 2. (A) A CARDHOLDER SHALL BE LIABLE FOR THE UNAUTHORIZED USE OF A DEBIT CARD ONLY IF: (1) THE CARD IS A DEBIT CARD WHICH THE CARDHOLDER HAS REQUESTED AND RECEIVED OR HAS SIGNED OR HAS USED, OR AUTHORIZED ANOTHER TO USE, FOR THE PURPOSE OF OBTAINING MONEY, PROPERTY, LABOR, OR SERVICES; (2) THE LIABILITY IS NOT IN EXCESS OF FIFTY DOLLARS; (3) THE CARD ISSUER GIVES ADEQUATE NOTICE TO THE CARDHOLDER OF THE POTENTIAL LIABILITY; (4) THE CARD ISSUER HAS PROVIDED THE CARDHOLDER WITH A DESCRIPTION OF A MEANS BY WHICH THE CARD ISSUER MAY BE NOTIFIED OF LOSS OR THEFT OF THE CARD, WHICH DESCRIPTION MAY BE PROVIDED ON THE FACE OR REVERSE SIDE OF EACH MONTHLY, QUARTERLY OR OTHER PERIODIC ACCOUNT STATEMENT ISSUED TO THE CARDHOLDER BY THE CARD ISSUER, AS APPLICABLE, OR ON A SEPARATE NOTICE ACCOMPANYING SUCH STATEMENT; (5) THE UNAUTHORIZED USE OCCURS BEFORE THE CARD ISSUER HAS BEEN NOTI- FIED THAT AN UNAUTHORIZED USE OF THE DEBIT CARD HAS OCCURRED OR MAY OCCUR AS THE RESULT OF LOSS, THEFT, OR OTHERWISE; AND EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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