S T A T E O F N E W Y O R K
________________________________________________________________________
2780
2015-2016 Regular Sessions
I N A S S E M B L Y
January 20, 2015
___________
Introduced by M. of A. NOLAN, JAFFEE, DINOWITZ -- Multi-Sponsored by --
M. of A. COOK, GLICK, PERRY, WEINSTEIN -- read once and referred to
the Committee on Banks
AN ACT to amend the banking law, in relation to requiring transmitters
of money to provide a certain warning to consumers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The banking law is amended by adding a new section 652-c to
read as follows:
S 652-C. REQUIRED WARNING. 1. A PERSON ENGAGED IN THE BUSINESS OF
RECEIVING MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC-
TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER PERSON, BUSI-
NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
THE TRANSMISSION PRIOR TO COMPLETING SUCH TRANSMISSION OF FUNDS. SUCH
WARNING SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
(A) A TITLE IN BOLD, CAPITAL LETTERS SAYING "WARNING: DO NOT FALL
VICTIM TO CONSUMER FRAUD;"
(B) QUESTIONS OR INFORMATION THAT ALERT A CONSUMER ABOUT THE DANGERS
OF SENDING FUNDS FOR LOTTERY WINNINGS, CREDIT CARD GUARANTEES OR LOANS,
INTERNET OR PHONE OFFERS, TO PERSONS UNKNOWN TO THE CONSUMER OR PERSONS
WHOSE IDENTITY THE CONSUMER CANNOT VERIFY AND ANY OTHER FRAUD ALERT; AND
(C) INFORMATION ABOUT HOW TO ASK QUESTIONS OF THE SALES CLERK OR
REPRESENTATIVE; AND
(D) INFORMATION ABOUT HOW TO STOP A TRANSFER.
2. FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY" MEANS:
(A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN
ELECTRONIC MEDIUM (SUCH AS VIDEO AND INTERACTIVE MEDIA INCLUDING, BUT
NOT LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL) THE
WARNING SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE THE
TRANSMISSION OF FUNDS, SHALL BE IN A TYPE SIZE SUFFICIENTLY NOTICEABLE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03589-01-5
A. 2780 2
FOR AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING AND
SHALL BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH THE
WRITTEN WARNING APPEARS; AND (B) IN ORAL COMMUNICATIONS, THE WARNING
SHALL BE DELIVERED IN A VOLUME AND CADENCE SUFFICIENT FOR AN ORDINARY
CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE-
LY THROUGH ORAL, WRITTEN OR VISUAL MEANS, THE WARNING SHALL BE MADE
THROUGH THE SAME MEANS.
3. THE WARNING REQUIRED BY THIS SECTION SHALL NOT APPLY TO AN ELEC-
TRONIC FUNDS TRANSFER IN WHICH FUNDS ARE NOT TRANSFERRED DIRECTLY TO
ANOTHER PERSON AND ARE NOT AVAILABLE FOR IMMEDIATE USE, NOR SHALL ANY
WARNING BE REQUIRED IN AN ELECTRONIC FUNDS TRANSFER MADE WITH A GIFT
CERTIFICATE AS DEFINED IN SECTION THREE HUNDRED NINETY-SIX-I OF THE
GENERAL BUSINESS LAW.
4. A VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL BE PUNISHABLE
BY A CIVIL PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR THE
FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.