S T A T E O F N E W Y O R K
________________________________________________________________________
894
2015-2016 Regular Sessions
I N A S S E M B L Y
January 8, 2015
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Introduced by M. of A. ROSENTHAL, GLICK, JAFFEE, DenDEKKER, HOOPER,
COOK, SCARBOROUGH, ROBINSON, MILLER, ABINANTI, WEPRIN -- Multi-Spon-
sored by -- M. of A. CAHILL, GUNTHER, MAGEE, PERRY -- read once and
referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting
debt collectors from collecting or attempting to collect a debt owed
by a deceased debtor that is known to be deceased
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. PROHIBITED PRACTICES REGARDING DECEASED DEBTORS. 1. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
(A) "DEBT" MEANS ANY OBLIGATION OR ALLEGED OBLIGATION OF A CONSUMER TO
PAY MONEY ARISING OUT OF A TRANSACTION IN WHICH THE MONEY, PROPERTY,
INSURANCE, OR SERVICES WHICH ARE THE SUBJECT OF THE TRANSACTION ARE
PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, WHETHER OR NOT
SUCH OBLIGATION HAS BEEN REDUCED TO JUDGMENT;
(B) "DEBT COLLECTOR" MEANS AN INDIVIDUAL WHO, AS PART OF HIS OR HER
JOB, REGULARLY COLLECTS OR ATTEMPTS TO COLLECT DEBTS: (I) OWED OR DUE OR
ASSERTED TO BE OWED OR DUE TO ANOTHER; OR (II) OBTAINED BY, OR ASSIGNED
TO, SUCH PERSON, FIRM OR CORPORATION, THAT ARE IN DEFAULT WHEN OBTAINED
OR ACQUIRED BY SUCH PERSON, FIRM OR CORPORATION; AND
(C) "ATTEMPTING TO COLLECT A DEBT" MEANS ANY ACTION TAKEN OR COMMUNI-
CATION MADE BY A PRINCIPAL CREDITOR OR DEBT COLLECTOR TO ANY PERSON WHO
IS AUTHORIZED TO RECEIVE SUCH COMMUNICATIONS ABOUT A DEBT.
2. ANY PRINCIPAL CREDITOR OR DEBT COLLECTOR ATTEMPTING TO COLLECT A
DEBT INCURRED BY A DECEASED DEBTOR FROM A PERSON WHO THE PRINCIPAL CRED-
ITOR OR DEBT COLLECTOR KNOWS IS NOT LEGALLY REQUIRED TO PAY SUCH DEBT
SHALL DISCLOSE TO SUCH PERSON THAT HE OR SHE IS NOT LEGALLY REQUIRED TO
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03927-01-5
A. 894 2
PAY SUCH DEBTS. IN ADDITION, SUCH PRINCIPAL CREDITOR OR DEBT COLLECTOR
SHALL NOT MAKE ANY MISREPRESENTATION ABOUT SUCH PERSON'S OBLIGATION TO
PAY SUCH DEBT.
3. (A) IN ADDITION TO ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY
GENERAL PURSUANT TO THIS ARTICLE, ANY PERSON AGGRIEVED BY REASON OF ANY
VIOLATION OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO
ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER
ACTUAL DAMAGES OR FIVE HUNDRED DOLLARS, WHICHEVER IS GREATER, OR BOTH
SUCH ACTIONS. IN THE CASE OF ANY SUCCESSFUL ACTION TO ENFORCE THE FORE-
GOING LIABILITY, THE COURT MAY AWARD THE COSTS OF THE ACTION TOGETHER
WITH REASONABLE ATTORNEY'S FEES. EACH COMMUNICATION THAT FAILS TO COMPLY
WITH THE REQUIREMENTS OF THIS SECTION SHALL CONSTITUTE A SEPARATE
VIOLATION.
(B) ANY CONSUMER ENTITLED TO BRING AN ACTION UNDER THIS SUBDIVISION
MAY, IF THE UNLAWFUL ACT OR PRACTICE HAS CAUSED DAMAGE TO OTHER CONSUM-
ERS SIMILARLY SITUATED, BRING AN ACTION ON BEHALF OF HIMSELF AND SUCH
OTHER CONSUMERS TO RECOVER DAMAGES OR OBTAIN OTHER RELIEF AS PROVIDED
FOR IN THIS SUBDIVISION. ANY ACTION BROUGHT UNDER THIS SUBDIVISION SHALL
COMPLY WITH ARTICLE NINE OF THE CIVIL PRACTICE LAW AND RULES.
S 2. Subdivision 1 of section 602 of the general business law, as
added by chapter 753 of the laws of 1973, is amended to read as follows:
1. Except as otherwise provided by law, any person who [shall violate]
WILLFULLY VIOLATES the terms of this article [shall be], EXCEPT THE
TERMS CONTAINED IN SECTION SIX HUNDRED ONE-A OF THIS ARTICLE, IS guilty
of a misdemeanor, and each such violation shall be deemed a separate
offense.
S 3. This act shall take effect on the ninetieth day after it shall
have become a law.