S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8099
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 26, 2017
                                ___________
 
 Introduced  by  M.  of A. KAVANAGH, DINOWITZ, GOTTFRIED, JAFFEE, WEPRIN,
   SOLAGES -- read once and referred to the Committee on Consumer Affairs
   and Protection
 
 AN ACT to amend the general business law, in relation to debt collection
   procedures
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 29-H of the general business law, as added by chap-
 ter 753 of the laws of 1973, subdivision 9 of section 601 as amended and
 subdivision  10 of section 601 and subdivision 3 of section 602 as added
 by chapter 342 of the laws of 2011, is amended to read as follows:
                               ARTICLE 29-H
                        DEBT COLLECTION PROCEDURES
 Section 600. Definitions.
         601. Prohibited CREDITOR practices.
         602. [Violations and penalties] CREDITOR RESPONSIBILITIES.
         603. [Severability] PROHIBITED DEBT COLLECTION PRACTICES.
         603-A. SELLING OR TRANSFERRING OF DEBTS.
         603-B. PRIVATE RIGHT OF ACTION.
         603-C. VIOLATIONS AND PENALTIES.
         603-D. SEVERABILITY.
   § 600. Definitions. As used in this article,  unless  the  context  or
 subject  matter  otherwise  requires:  1.  "[Consumer  claim]  DEBT"  OR
 "CONSUMER DEBT" means any obligation OR ALLEGED OBLIGATION of a  natural
 person  for  the  payment  of  money  [or  its equivalent which is or is
 alleged to be in default and which arises] ARISING  out  of  a  CONSUMER
 transaction  wherein  credit  has  been offered or extended to a natural
 person, and the money, property [or],  INSURANCE,  service  OR  SERVICES
 which  [was]  ARE the subject of the transaction [was] ARE primarily for
 personal, family or household purposes, WHETHER OR NOT  SUCH  OBLIGATION
 HAS  BEEN  REDUCED  TO A JUDGMENT.  The term includes an obligation of a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11895-01-7

 A. 8099                             2
 
 natural person who is a co-maker, endorser, guarantor or surety as  well
 as the natural person to whom such credit was originally extended.
   2.  "Debtor"  means  any natural person who owes or who is asserted to
 owe a [consumer claim] CONSUMER DEBT.
   3. "[Principal creditor] CREDITOR" means  any  person,  firm,  ASSOCI-
 ATION, corporation, [or] organization [to whom] OR OTHER BUSINESS ENTITY
 THAT OFFERS OR EXTENDS CREDIT, CREATING a consumer [claim is] DEBT owed,
 due  or  asserted  to be due or owed, [or any assignee for value of said
 person, firm, corporation  or  organization]  BUT  SUCH  TERM  DOES  NOT
 INCLUDE  ANY  PERSON,  ASSOCIATION,  FIRM,  CORPORATION, ORGANIZATION OR
 OTHER BUSINESS ENTITY TO THE EXTENT THAT IT RECEIVES  AN  ASSIGNMENT  OR
 TRANSFER  OF  A  DEBT  IN DEFAULT SOLELY FOR THE PURPOSE OF FACILITATING
 COLLECTION OF SUCH DEBT FOR ANOTHER.
   4. "COMMUNICATION" MEANS THE CONVEYING OF INFORMATION REGARDING A DEBT
 DIRECTLY OR INDIRECTLY TO ANY PERSON THROUGH ANY MEDIUM.
   5. "CONSUMER" MEANS ANY NATURAL PERSON OBLIGATED  OR  ALLEGEDLY  OBLI-
 GATED  TO  PAY ANY DEBT ARISING OUT OF A TRANSACTION IN WHICH THE MONEY,
 PROPERTY, INSURANCE, OR SERVICES WHICH ARE THE  SUBJECT  OF  THE  TRANS-
 ACTION ARE PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, WHETH-
 ER OR NOT SUCH OBLIGATION HAS BEEN REDUCED TO JUDGMENT.
   6.  "DEBT  COLLECTOR"  MEANS  AN INDIVIDUAL, ASSOCIATION, FIRM, CORPO-
 RATION, ORGANIZATION OR OTHER BUSINESS ENTITY WHO, AS PART OF HIS OR HER
 JOB, REGULARLY COLLECTS OR SEEKS TO COLLECT FROM A CONSUMER A DEBT  OWED
 OR DUE TO ANOTHER OR ALLEGED TO BE OWED OR DUE.
   THE TERM DOES NOT INCLUDE:
   (A)  ANY  OFFICER  OR EMPLOYEE OF A CREDITOR WHILE, IN THE NAME OF THE
 CREDITOR, COLLECTING DEBTS FOR SUCH CREDITOR;
   (B) ANY OFFICER OR EMPLOYEE OF THE UNITED STATES,  ANY  STATE  OR  ANY
 POLITICAL  SUBDIVISION  OF  ANY  STATE  TO THE EXTENT THAT COLLECTING OR
 ATTEMPTING TO COLLECT ANY DEBT OWED IS IN THE PERFORMANCE OF HIS OR  HER
 OFFICIAL DUTIES;
   (C)  ANY  PERSON WHILE SERVING OR ATTEMPTING TO SERVE LEGAL PROCESS ON
 ANY OTHER PERSON IN CONNECTION WITH  THE  JUDICIAL  ENFORCEMENT  OF  ANY
 DEBT;
   (D)  ANY INDIVIDUAL EMPLOYED BY A NONPROFIT ORGANIZATION WHICH, AT THE
 REQUEST OF CONSUMERS, PERFORMS BONA FIDE CONSUMER CREDIT COUNSELING  AND
 ASSISTS  CONSUMERS  IN  THE  LIQUIDATION  OF  THEIR  DEBTS  BY RECEIVING
 PAYMENTS FROM SUCH CONSUMERS AND DISTRIBUTING SUCH AMOUNTS TO CREDITORS;
   (E) ANY PERSON WHILE ACTING AS A DEBT COLLECTOR  FOR  ANOTHER  PERSON,
 BOTH  OF WHOM ARE RELATED BY COMMON OWNERSHIP OR AFFILIATED BY CORPORATE
 CONTROL, IF THE PERSON ACTING AS A  DEBT  COLLECTOR  DOES  SO  ONLY  FOR
 PERSONS  TO  WHOM  IT  IS  SO RELATED OR AFFILIATED AND IF THE PRINCIPAL
 BUSINESS OF SUCH PERSON IS NOT THE COLLECTION OF DEBTS; OR
   (F) ANY PERSON COLLECTING OR ATTEMPTING TO COLLECT ANY  DEBT  OWED  OR
 DUE  OR  ASSERTED  TO BE OWED OR DUE ANOTHER TO THE EXTENT SUCH ACTIVITY
 (I) IS INCIDENTAL TO A BONA FIDE FIDUCIARY OBLIGATION  OR  A  BONA  FIDE
 ESCROW  ARRANGEMENT;  (II)  CONCERNS A DEBT WHICH WAS ORIGINATED BY SUCH
 PERSON; (III) CONCERNS A DEBT WHICH WAS NOT IN DEFAULT AT  THE  TIME  IT
 WAS  OBTAINED  BY  SUCH PERSON; OR (IV) CONCERNS A DEBT OBTAINED BY SUCH
 PERSON'S SECURED PARTY IN A COMMERCIAL CREDIT TRANSACTION INVOLVING  THE
 CREDITOR.
   7. "LOCATION INFORMATION" MEANS A CONSUMER'S PLACE OF ABODE AND HIS OR
 HER TELEPHONE NUMBER AT SUCH PLACE, OR HIS OR HER PLACE OF EMPLOYMENT.
   8.  "VERIFICATION OF THE DEBT" MEANS A COPY OF THE LAST BILL OR NOTICE
 OF COLLECTION SENT FROM THE CREDITOR TO THE DEBTOR, ANY JUDGMENT  LEVIED
 IN  CONJUNCTION  WITH SUCH DEBT, AND, IF APPLICABLE, A COPY OF THE JUDG-

 A. 8099                             3
 
 MENT RELEASE AND A COPY OF THE WRITTEN COMMUNICATION ADVISING THE DEBTOR
 THAT HIS OR HER DEBT HAS BEEN SOLD OR TRANSFERRED.
   §  601.  Prohibited  CREDITOR  practices.  No [principal] creditor, as
 defined by this article, or his OR HER agent shall:
   1. Simulate in any manner a law enforcement officer,  or  a  represen-
 tative of any governmental agency of the state of New York or any of its
 political subdivisions; or
   2.  Knowingly  collect,  attempt  to collect, or assert a right to any
 collection fee, attorney's  fee,  court  cost  or  expense  unless  such
 [changes]  CHARGES  are  justly  due  and legally chargeable against the
 debtor; or
   3. Disclose or threaten to disclose information affecting the debtor's
 reputation for credit worthiness with knowledge or reason to  know  that
 the information is false; or
   4.  Communicate  or  threaten  to communicate the nature of a consumer
 [claim] DEBT to the debtor's employer prior to obtaining final  judgment
 against  the  debtor.    The  provisions  of  this subdivision shall not
 prohibit a [principal] creditor from  communicating  with  the  debtor's
 employer  to  execute  a  wage  assignment  agreement  if the debtor has
 consented to such an agreement; or
   5. Disclose or threaten to disclose information concerning the  exist-
 ence  of  a  debt  known to be disputed by the debtor without disclosing
 that fact; or
   6. Communicate with the debtor or any member of his OR HER  family  or
 household AT ANY TIME OTHER THAN BETWEEN THE HOURS OF 8:00 A.M. AND 9:00
 P.M.  LOCAL TIME OR with such frequency [or at such unusual hours] or in
 such a manner as can reasonably be  expected  to  abuse  or  harass  the
 debtor; or
   7.  Threaten  any  action  which the [principal] creditor in the usual
 course of his OR HER business does not in fact take; or
   8. Claim, or attempt or threaten to enforce a right with knowledge  or
 reason to know that the right does not exist; or
   9. Use a communication which simulates in any manner legal or judicial
 process  or  which  gives  the appearance of being authorized, issued or
 approved by a government, governmental agency, or attorney at  law  when
 it is not; or
   10. If such [principal] creditor or agent sends more than fifty infor-
 mation subpoenas per month, fail to keep complete records concerning all
 information  subpoenas  sent by such [principal] creditor or agent. Such
 records shall be maintained  for  five  years.  Contemporaneous  records
 shall  be  kept  that  set  forth  with specificity the grounds for such
 [principal] creditor or agent's reasonable belief, which must be  certi-
 fied  and accompany each information subpoena pursuant to rule fifty-two
 hundred twenty-four of the civil practice law and rules, that the  party
 receiving  the  subpoena  has  in  its  possession information about the
 debtor that will assist the creditor in collecting his or her judgement.
 In addition to any other penalty that [my] MAY be  imposed,  failure  to
 maintain  records in accordance with this subdivision shall subject such
 [principal] creditor or agent to a civil penalty of not more than  fifty
 dollars  per  subpoena,  up  to  a  maximum of five thousand dollars per
 violation, in an action brought by the attorney general.
   § 602. CREDITOR RESPONSIBILITIES.  EVERY CREDITOR OR HIS OR HER  AGENT
 SHALL SEND A NOTICE TO THE LAST KNOWN ADDRESS OF THE DEBTOR ADVISING THE
 DEBTOR  WHEN  HIS  OR HER DEBT IS BEING SOLD OR TRANSFERRED, PRIOR TO OR
 CONTEMPORANEOUS WITH THE SALE OF THE DEBT. A COPY OF THIS  NOTICE  SHALL
 BE  TRANSMITTED  TO THE PERSON, FIRM, ORGANIZATION OR ENTITY TO WHOM THE

 A. 8099                             4
 
 CREDITOR OR HIS OR HER AGENT HAS AGREED TO SELL OR  TRANSFER  THE  DEBT,
 ALONG  WITH  A  COPY OF ANY NOTICE IN REGARD TO THE DEBT PROVIDED TO THE
 CREDITOR IN ACCORDANCE  WITH  PARAGRAPH  (B)  OF  SUBDIVISION  SEVEN  OF
 SECTION  SIX  HUNDRED  THREE OF THIS ARTICLE. A CREDITOR SHALL PROVIDE A
 COPY OF SUCH NOTICE TO ANY DEBT COLLECTOR HIRED TO COLLECT SUCH DEBT.
   § 603. PROHIBITED DEBT COLLECTION PRACTICES.  IT IS AN  UNCONSCIONABLE
 AND  DECEPTIVE TRADE PRACTICE FOR A DEBT COLLECTOR TO ATTEMPT TO COLLECT
 A DEBT OWED, DUE, OR ASSERTED TO BE OWED OR  DUE  EXCEPT  IN  ACCORDANCE
 WITH THE FOLLOWING:
   1. ACQUISITION OF LOCATION INFORMATION. ANY DEBT COLLECTOR COMMUNICAT-
 ING WITH ANY PERSON OTHER THAN THE CONSUMER FOR THE PURPOSE OF ACQUIRING
 LOCATION  INFORMATION  ABOUT  THE  CONSUMER  IN  ORDER TO COLLECT A DEBT
 SHALL:
   (A) IDENTIFY HIMSELF OR HERSELF, STATE THAT HE OR SHE IS CONFIRMING OR
 CORRECTING  LOCATION  INFORMATION  ABOUT  THE  CONSUMER,  AND,  ONLY  IF
 EXPRESSLY REQUESTED, IDENTIFY HIS OR HER EMPLOYER;
   (B) NOT STATE OR IMPLY THAT SUCH CONSUMER OWES ANY DEBT;
   (C)  NOT  COMMUNICATE  WITH  ANY  SUCH  PERSON  MORE THAN ONCE, UNLESS
 REQUESTED TO DO SO BY SUCH PERSON OR UNLESS THE DEBT  COLLECTOR  REASON-
 ABLY  BELIEVES  THAT THE EARLIER RESPONSE OF SUCH PERSON IS ERRONEOUS OR
 INCOMPLETE AND THAT SUCH PERSON NOW HAS  CORRECT  OR  COMPLETE  LOCATION
 INFORMATION. FOR THE PURPOSES OF THIS PARAGRAPH, THE DEBT COLLECTOR NEED
 NOT  COUNT  AS  A COMMUNICATION RETURNED UNOPENED MAIL OR A MESSAGE LEFT
 WITH A PARTY OTHER THAN THE PERSON THE DEBT COLLECTOR IS  ATTEMPTING  TO
 REACH  IN  ORDER  TO ACQUIRE LOCATION INFORMATION ABOUT THE CONSUMER, AS
 LONG AS THE MESSAGE IS LIMITED TO A TELEPHONE NUMBER, THE  NAME  OF  THE
 DEBT  COLLECTOR  AND  A  REQUEST  THAT  THE RECIPIENT TELEPHONE THE DEBT
 COLLECTOR;
   (D) NOT COMMUNICATE BY POST CARD;
   (E) NOT USE ANY LANGUAGE OR SYMBOL ON ANY ENVELOPE OR IN THE  CONTENTS
 OF  ANY  COMMUNICATION  EFFECTED BY THE MAILS OR TELEGRAM THAT INDICATES
 THAT THE DEBT COLLECTOR IS IN THE DEBT COLLECTION BUSINESS OR  THAT  THE
 COMMUNICATION  RELATES TO THE COLLECTION OF A DEBT, PROVIDED THAT A DEBT
 COLLECTOR MAY USE HIS OR HER BUSINESS NAME OR THE NAME OF  A  DEPARTMENT
 WITHIN HIS OR HER ORGANIZATION AS LONG AS ANY NAME USED DOES NOT CONNOTE
 DEBT COLLECTION; AND
   (F)  IF  THE  DEBT  COLLECTOR  KNOWS THE CONSUMER IS REPRESENTED BY AN
 ATTORNEY WITH REGARD TO THE SUBJECT DEBT AND IF THE DEBT  COLLECTOR  HAS
 KNOWLEDGE  OF  THE  ATTORNEY'S NAME AND ADDRESS OR CAN READILY ASCERTAIN
 SUCH ATTORNEY'S NAME AND ADDRESS, NOT COMMUNICATE WITH ANY PERSON  OTHER
 THAN  THAT  ATTORNEY  FOR  THE PURPOSE OF ACQUIRING LOCATION INFORMATION
 ABOUT THE CONSUMER UNLESS THE ATTORNEY FAILS TO PROVIDE  THE  CONSUMER'S
 LOCATION  WITHIN  A  REASONABLE  PERIOD  OF TIME AFTER A REQUEST FOR THE
 CONSUMER'S LOCATION FROM THE DEBT COLLECTOR AND:
   (I) INFORMS THE DEBT COLLECTOR THAT HE OR SHE  IS  NOT  AUTHORIZED  TO
 ACCEPT PROCESS FOR THE CONSUMER, OR
   (II) FAILS TO RESPOND TO THE DEBT COLLECTOR'S INQUIRY ABOUT THE ATTOR-
 NEY'S  AUTHORITY  TO  ACCEPT  PROCESS WITHIN A REASONABLE PERIOD OF TIME
 AFTER THE INQUIRY.
   2. COMMUNICATION IN CONNECTION WITH DEBT COLLECTION.  (A) WITHOUT  THE
 PRIOR WRITTEN CONSENT OF THE CONSUMER GIVEN DIRECTLY TO THE DEBT COLLEC-
 TOR  AFTER  THE  INSTITUTION  OF  DEBT COLLECTION PROCEDURES, OR WITHOUT
 PERMISSION OF A COURT OF COMPETENT JURISDICTION, A DEBT COLLECTOR  SHALL
 NOT  COMMUNICATE  WITH THE CONSUMER IN CONNECTION WITH THE COLLECTION OF
 ANY DEBT:

 A. 8099                             5
 
   (I) ORALLY, AT ANY TIME OTHER THAN BETWEEN THE HOURS OF 8:00 A.M.  AND
 9:00  P.M.  LOCAL  TIME  OR  ANY UNUSUAL PLACE KNOWN, OR WHICH SHOULD BE
 KNOWN, TO BE INCONVENIENT TO THE CONSUMER;
   (II) AT THE CONSUMER'S PLACE OF EMPLOYMENT.  IF THE DEBT COLLECTOR HAS
 RECEIVED  CONSENT  FROM THE CONSUMER TO COMMUNICATE WITH THE CONSUMER AT
 THE CONSUMER'S PLACE OF EMPLOYMENT, THE DEBT COLLECTOR  MAY  COMMUNICATE
 WITH THE CONSUMER, UNLESS THE DEBT COLLECTOR KNOWS OR HAS REASON TO KNOW
 THAT  THE  CONSUMER'S EMPLOYER OR SUPERVISOR PROHIBITS THE CONSUMER FROM
 RECEIVING SUCH A COMMUNICATION, OR
   (III) WITH EXCESSIVE FREQUENCY. IN THE ABSENCE OF KNOWLEDGE OF CIRCUM-
 STANCES TO THE CONTRARY, A DEBT COLLECTOR SHALL ASSUME  THAT  MORE  THAN
 TWICE  DURING  A  SEVEN-CALENDAR-DAY PERIOD IS EXCESSIVELY FREQUENT.  IN
 MAKING ITS CALCULATION, THE DEBT COLLECTOR NEED NOT INCLUDE ANY COMMUNI-
 CATION BETWEEN A CONSUMER AND THE DEBT COLLECTOR WHICH IS IN RESPONSE TO
 AN ORAL OR WRITTEN COMMUNICATION FROM THE CONSUMER, OR RETURNED UNOPENED
 MAIL, OR A MESSAGE LEFT WITH A PARTY OTHER THAN ONE WHO  IS  RESPONSIBLE
 FOR  THE  DEBT  AS LONG AS THE MESSAGE IS LIMITED TO A TELEPHONE NUMBER,
 THE NAME OF THE DEBT COLLECTOR AND A REQUEST THAT ONE WHO IS RESPONSIBLE
 FOR THE DEBT TELEPHONE THE DEBT COLLECTOR; OR ANY COMMUNICATION WHICH IS
 REQUIRED BY LAW OR CHOSEN  FROM  AMONG  ALTERNATIVES  OF  WHICH  ONE  IS
 REQUIRED BY LAW.
   (B)  IN ORDER TO COLLECT A DEBT, AND EXCEPT AS PROVIDED BY SUBDIVISION
 ONE OF THIS SECTION, WITHOUT THE PRIOR WRITTEN CONSENT OF  THE  CONSUMER
 GIVEN  DIRECTLY  TO  THE  DEBT  COLLECTOR  AFTER THE INSTITUTION OF DEBT
 COLLECTION PROCEDURES, OR WITHOUT  THE  PRIOR  WRITTEN  CONSENT  OF  THE
 CONSUMER'S  ATTORNEY  OR  WITHOUT  THE  EXPRESS PERMISSION OF A COURT OF
 COMPETENT JURISDICTION, OR AS REASONABLY NECESSARY TO EFFECTUATE A  POST
 JUDGMENT  JUDICIAL  REMEDY,  A  DEBT  COLLECTOR  MAY NOT COMMUNICATE, IN
 CONNECTION WITH THE COLLECTION OF ANY DEBT, WITH ANY PERSON  OTHER  THAN
 THE CONSUMER, HIS OR HER ATTORNEY, A CONSUMER REPORTING AGENCY IF OTHER-
 WISE  PERMITTED  BY  LAW, THE CREDITOR, THE ATTORNEY OF THE CREDITOR, OR
 ATTORNEY OF THE DEBT COLLECTOR.
   (C) AFTER INSTITUTION OF DEBT COLLECTION, A DEBT COLLECTOR  SHALL  NOT
 COMMUNICATE  WITH  A CONSUMER WITH RESPECT TO A DEBT IF THE CONSUMER HAS
 NOTIFIED THE DEBT COLLECTOR IN WRITING THAT THE CONSUMER REFUSES TO  PAY
 A  DEBT OR WISHES THE DEBT COLLECTOR TO CEASE FURTHER COMMUNICATION WITH
 THE CONSUMER WITH RESPECT TO THAT DEBT, EXCEPT:
   (I) TO ADVISE THE CONSUMER THAT THE DEBT COLLECTOR'S  FURTHER  EFFORTS
 ARE BEING TERMINATED;
   (II)  TO NOTIFY THE CONSUMER THAT THE DEBT COLLECTOR MAY INVOKE SPECI-
 FIED REMEDIES WHICH ARE ORDINARILY INVOKED BY SUCH DEBT COLLECTOR;
   (III) WHERE APPLICABLE, TO NOTIFY THE CONSUMER THAT THE DEBT COLLECTOR
 INTENDS TO INVOKE A SPECIFIED REMEDY, OR
   (IV) TO RESPOND TO EACH SUBSEQUENT COMMUNICATION FROM THE CONSUMER.
   (D) FOR THE PURPOSE OF THIS SUBDIVISION THE TERM  "CONSUMER"  INCLUDES
 THE  CONSUMER'S PARENT (IF THE CONSUMER IS A MINOR), GUARDIAN, EXECUTOR,
 ADMINISTRATOR, AND SPOUSE (UNLESS THE DEBT COLLECTOR KNOWS OR HAS REASON
 TO KNOW THAT THE CONSUMER IS LEGALLY SEPARATED FROM OR NO LONGER  LIVING
 WITH  HIS OR HER SPOUSE), OR AN INDIVIDUAL AUTHORIZED BY THE CONSUMER TO
 MAKE  PURCHASES  AGAINST  THE  ACCOUNT  WHICH  IS  THE  SUBJECT  OF  THE
 COLLECTION  EFFORTS.  A  REQUEST  THAT  THE DEBT COLLECTOR CEASE FURTHER
 COMMUNICATION, PROVIDED FOR UNDER  THIS  SUBDIVISION,  IF  MADE  BY  THE
 CONSUMER'S  SPOUSE  OR  AN INDIVIDUAL AUTHORIZED BY THE CONSUMER TO MAKE
 PURCHASES AGAINST THE ACCOUNT, ONLY AFFECTS THE DEBT COLLECTOR'S ABILITY
 TO COMMUNICATE FURTHER WITH THE PERSON MAKING THE REQUEST.

 A. 8099                             6

   3. HARASSMENT OR ABUSE. A DEBT COLLECTOR SHALL NOT HARASS, OPPRESS  OR
 ABUSE  ANY  PERSON  IN CONNECTION WITH THE COLLECTION OF A DEBT. WITHOUT
 LIMITING THE GENERAL APPLICATION OF THE FOREGOING, THE FOLLOWING CONDUCT
 IS PROHIBITED:
   (A)  THE USE OR THREAT OF VIOLENCE OR OTHER CRIMINAL MEANS TO HARM THE
 PHYSICAL PERSON, REPUTATION, OR PROPERTY OF ANY PERSON;
   (B) THE USE OF OBSCENE OR PROFANE LANGUAGE  OR  LANGUAGE  THE  NATURAL
 CONSEQUENCE OF WHICH IS TO ABUSE THE RECIPIENT OF THE COMMUNICATION;
   (C)  THE  ADVERTISEMENT  FOR SALE OF ANY DEBT TO COERCE PAYMENT OF THE
 DEBT;
   (D) CAUSING A TELEPHONE TO RING OR ENGAGING ANY  PERSON  IN  TELEPHONE
 CONVERSATION  REPEATEDLY OR CONTINUOUSLY WITH INTENT TO ANNOY, ABUSE, OR
 HARASS ANY PERSON AT THE CALLED NUMBER;
   (E) THE PUBLICATION OF A LIST OF CONSUMERS WHO ALLEGEDLY REFUSE TO PAY
 DEBTS, EXCEPT TO ANOTHER EMPLOYEE OF THE DEBT COLLECTOR'S EMPLOYER OR TO
 A CONSUMER REPORTING AGENCY OR TO PERSONS MEETING THE REQUIREMENTS OF 15
 USC 1681A(F) OR 15 USC 1681B(3); OR
   (F) EXCEPT AS PROVIDED BY SUBDIVISION ONE OF THIS SECTION, THE  PLACE-
 MENT  OF  TELEPHONE  CALLS WITHOUT MEANINGFUL DISCLOSURE OF THE CALLER'S
 IDENTITY.
   4. FALSE OR MISLEADING REPRESENTATIONS. A  DEBT  COLLECTOR  SHALL  NOT
 MAKE  ANY  FALSE,  DECEPTIVE,  OR  MISLEADING REPRESENTATION OR MEANS IN
 CONNECTION WITH THE COLLECTION OF ANY DEBT. WITHOUT LIMITING THE GENERAL
 APPLICATION OF THE FOREGOING, THE FOLLOWING CONDUCT IS PROHIBITED:
   (A) THE FALSE REPRESENTATION OR IMPLICATION THAT THE DEBT COLLECTOR IS
 VOUCHED FOR, BONDED BY, OR AFFILIATED WITH  THE  UNITED  STATES  OR  ANY
 STATE, INCLUDING THE USE OF ANY BADGE, UNIFORM OR FACSIMILE THEREOF;
   (B) THE FALSE REPRESENTATION OF:
   (I) THE CHARACTER, AMOUNT, OR LEGAL STATUS OF ANY DEBT, OR
   (II)  ANY  SERVICES  RENDERED  OR  COMPENSATION  WHICH MAY BE LAWFULLY
 RECEIVED BY ANY DEBT COLLECTOR FOR THE COLLECTION OF A DEBT;
   (C) THE FALSE REPRESENTATION OR IMPLICATION THAT ANY INDIVIDUAL IS  AN
 ATTORNEY OR ANY COMMUNICATION IS FROM AN ATTORNEY;
   (D) THE REPRESENTATION OR IMPLICATION THAT NONPAYMENT OF ANY DEBT WILL
 RESULT  IN  THE  ARREST  OR  IMPRISONMENT  OF ANY PERSON OR THE SEIZURE,
 GARNISHMENT, ATTACHMENT, OR SALE OF ANY PROPERTY OR WAGES OF ANY  PERSON
 UNLESS  SUCH ACTION IS LAWFUL AND THE DEBT COLLECTOR OR CREDITOR INTENDS
 TO PURSUE SUCH ACTION;
   (E) THE THREAT TO TAKE ANY ACTION THAT CANNOT LEGALLY BE TAKEN OR THAT
 IS NOT INTENDED TO BE TAKEN;
   (F) THE FALSE REPRESENTATION OR IMPLICATION THAT A SALE, REFERRAL,  OR
 OTHER TRANSFER OF ANY INTEREST IN A DEBT SHALL CAUSE THE CONSUMER TO:
   (I) LOSE ANY CLAIM OR DEFENSE TO PAYMENT OF THE DEBT; OR
   (II) BECOME SUBJECT TO ANY PRACTICE PROHIBITED BY THIS ARTICLE;
   (G)  THE FALSE REPRESENTATION OR IMPLICATION MADE IN ORDER TO DISGRACE
 THE CONSUMER THAT THE CONSUMER COMMITTED ANY CRIME OR OTHER CONDUCT;
   (H) THE FALSE REPRESENTATION OR IMPLICATION THAT  ACCOUNTS  HAVE  BEEN
 TURNED OVER TO INNOCENT PURCHASERS FOR VALUE;
   (I)  COMMUNICATING  OR THREATENING TO COMMUNICATE TO ANY PERSON CREDIT
 INFORMATION WHICH IS KNOWN OR WHICH SHOULD BE KNOWN TO BE FALSE, INCLUD-
 ING THE FAILURE TO COMMUNICATE A DISPUTED DEBT'S STATUS AS DISPUTED;
   (J) THE FALSE REPRESENTATION OR IMPLICATION THAT DOCUMENTS  ARE  LEGAL
 PROCESS;
   (K)  THE USE OF ANY FALSE REPRESENTATION OR DECEPTIVE MEANS TO COLLECT
 OR ATTEMPT TO COLLECT ANY DEBT OR TO  OBTAIN  INFORMATION  CONCERNING  A
 CONSUMER;

 A. 8099                             7
 
   (L)  THE  USE OR DISTRIBUTION OF ANY WRITTEN COMMUNICATION WHICH SIMU-
 LATES OR IS FALSELY REPRESENTED TO BE A DOCUMENT AUTHORIZED, ISSUED,  OR
 APPROVED  BY  ANY  COURT,  OFFICIAL  OR AGENCY OF THE UNITED STATES, THE
 STATE OR ANY POLITICAL SUBDIVISION THEREOF, OR  WHICH  CREATES  A  FALSE
 IMPRESSION AS TO ITS SOURCE, AUTHORIZATION, OR APPROVAL;
   (M)  THE  FALSE  REPRESENTATION  OR IMPLICATION THAT DOCUMENTS ARE NOT
 LEGAL PROCESS FORMS AND DO NOT REQUIRE ACTION BY THE CONSUMER;
   (N) THE FALSE REPRESENTATION OR  IMPLICATION  THAT  A  DEBT  COLLECTOR
 OPERATES  OR IS EMPLOYED BY A CONSUMER REPORTING AGENCY AS DEFINED BY 15
 USC 1681A(F);
   (O) COMMUNICATING OR THREATENING TO COMMUNICATE TO ANY  PERSON  CREDIT
 INFORMATION WHICH IS KNOWN OR WHICH SHOULD BE KNOWN TO BE FALSE, INCLUD-
 ING THE FAILURE TO COMMUNICATE A DISPUTED DEBT'S STATUS AS DISPUTED;
   (P) EXCEPT AS OTHERWISE PROVIDED UNDER SUBDIVISION ONE OF THIS SECTION
 AND EXCEPT FOR ANY COMMUNICATION WHICH IS REQUIRED BY LAW OR CHOSEN FROM
 AMONG ALTERNATIVES OF WHICH ONE IS REQUIRED BY LAW, OR ANY FORMAL PLEAD-
 ING IN CONNECTION WITH ANY LEGAL ACTION, THE FAILURE TO DISCLOSE CLEARLY
 IN  ALL  COMMUNICATIONS  MADE TO COLLECT A DEBT OR TO OBTAIN INFORMATION
 ABOUT A CONSUMER, THAT THE DEBT COLLECTOR IS  ATTEMPTING  TO  COLLECT  A
 DEBT AND THAT ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE; OR
   (Q)  THE USE OF ANY BUSINESS, COMPANY, OR ORGANIZATION NAME OTHER THAN
 THE TRUE NAME OF THE DEBT COLLECTOR'S BUSINESS,  COMPANY,  OR  ORGANIZA-
 TION.
   5.  UNFAIR  PRACTICES.  A  DEBT  COLLECTOR SHALL NOT USE ANY UNFAIR OR
 UNCONSCIONABLE MEANS TO COLLECT OR ATTEMPT TO COLLECT  A  DEBT.  WITHOUT
 LIMITATION OF THE FOREGOING, SUCH PROHIBITED CONDUCT INCLUDES:
   (A) THE COLLECTION OF ANY AMOUNT (INCLUDING ANY INTEREST, FEE, CHARGE,
 OR EXPENSE INCIDENTAL TO THE PRINCIPAL OBLIGATION) UNLESS SUCH AMOUNT IS
 EXPRESSLY AUTHORIZED BY THE AGREEMENT CREATING THE DEBT;
   (B) THE SOLICITATION OR USE BY A DEBT COLLECTOR OF ANY POSTDATED CHECK
 OR  OTHER POSTDATED PAYMENT INSTRUMENT FOR THE PURPOSE OF THREATENING OR
 INSTITUTING CRIMINAL PROSECUTION;
   (C) CAUSING CHARGES TO BE MADE TO ANY  PERSON  FOR  COMMUNICATIONS  BY
 MISREPRESENTATION  OF  TRUE  PURPOSE  OF THE COMMUNICATION. SUCH CHARGES
 INCLUDE COLLECT TELEPHONE CALLS, TELEGRAM AND WIRELESS TELEPHONE FEES;
   (D) TAKING OR THREATENING TO TAKE ANY  NONJUDICIAL  ACTION  TO  EFFECT
 DISPOSSESSION OR DISABLEMENT OF PROPERTY IF:
   (I) THERE IS NO PRESENT RIGHT TO POSSESSION OF THE PROPERTY CLAIMED AS
 COLLATERAL;
   (II) THERE IS NO PRESENT INTENTION TO TAKE POSSESSION OF THE PROPERTY;
 OR
   (III)  THE  PROPERTY IS EXEMPT BY LAW FROM SUCH DISPOSSESSION OR DISA-
 BLEMENT;
   (E) COMMUNICATING WITH A CONSUMER REGARDING A DEBT BY POST CARD;
   (F) USING ANY LANGUAGE OR SYMBOL,  OTHER  THAN  THE  DEBT  COLLECTOR'S
 ADDRESS,  ON  ANY  ENVELOPE WHEN COMMUNICATING WITH A CONSUMER BY USE OF
 THE MAILS OR BY TELEGRAM, OR ELECTRONIC COMMUNICATION COPIED TO A  THIRD
 PARTY  EXCEPT  THAT A DEBT COLLECTOR MAY USE HIS OR HER BUSINESS NAME OR
 THE NAME OF A DEPARTMENT WITHIN HIS OR HER ORGANIZATION AS LONG  AS  ANY
 NAME  USED  DOES  NOT INDICATE THAT HE OR SHE IS IN THE BUSINESS OF DEBT
 COLLECTION;
   (G) COMMUNICATING WITH A CONSUMER REGARDING A DEBT WITHOUT IDENTIFYING
 HIMSELF OR HERSELF AND HIS OR HER EMPLOYER OR COMMUNICATING  IN  WRITING
 WITH  A CONSUMER REGARDING A DEBT WITHOUT IDENTIFYING HIMSELF OR HERSELF
 BY NAME AND ADDRESS; OR

 A. 8099                             8
 
   (H) IF ANY CONSUMER OWES MULTIPLE DEBTS AND MAKES ANY  SINGLE  PAYMENT
 TO  ANY  DEBT  COLLECTOR WITH RESPECT TO SUCH DEBTS, SUCH DEBT COLLECTOR
 MAY NOT APPLY SUCH PAYMENT TO ANY DEBT WHICH IS DISPUTED BY THE CONSUMER
 AND, WHERE APPLICABLE, SHALL APPLY SUCH PAYMENT IN ACCORDANCE  WITH  THE
 CONSUMER'S DIRECTIONS.
   6.  DECEPTIVE  FORMS. IT IS UNLAWFUL FOR ANY PERSON TO DESIGN, COMPILE
 AND FURNISH ANY FORM KNOWING THAT SUCH FORM WOULD BE USED TO CREATE  THE
 FALSE BELIEF IN A CONSUMER THAT A PERSON OTHER THAN THE CREDITOR OF SUCH
 CONSUMER  IS  PARTICIPATING  IN  THE  COLLECTION  OF OR IN AN ATTEMPT TO
 COLLECT A DEBT SUCH CONSUMER ALLEGEDLY OWES SUCH CREDITOR, WHEN IN  FACT
 SUCH PERSON IS NOT SO PARTICIPATING.
   7.  VALIDATION OF DEBTS.  THE FOLLOWING VALIDATION PROCEDURES SHALL BE
 FOLLOWED BY DEBT COLLECTORS:
   (A) WITHIN FIVE DAYS AFTER THE INITIAL COMMUNICATION WITH  A  CONSUMER
 IN  CONNECTION  WITH THE COLLECTION OF ANY DEBT, A DEBT COLLECTOR SHALL,
 UNLESS THE FOLLOWING INFORMATION IS CONTAINED IN  THE  INITIAL  COMMUNI-
 CATION  OR  THE  CONSUMER  HAS  PAID THE DEBT, SEND THE CONSUMER A CLEAR
 WRITTEN NOTICE TITLED "DEBTOR'S RIGHTS," WHICH SHALL CONTAIN:
   (I) THE DELINEATED AMOUNTS OF THE  ORIGINAL  DEBT,  ANY  INTEREST  AND
 PENALTIES ACCRUED, AND THE TOTAL DEBT DUE AT THE TIME OF THE NOTICE,
   (II)  THE  NAME,  ADDRESS AND TELEPHONE NUMBER OF THE CREDITOR TO WHOM
 THE DEBT IS OWED, OR SUCH CREDITOR'S AGENT, AND THE  NAME,  ADDRESS  AND
 TELEPHONE NUMBER OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM THE CURRENT
 DEBT COLLECTOR,
   (III) THE DATE THE DEBT WAS DEEMED IN DEFAULT,
   (IV)  A  STATEMENT  THAT UNLESS THE CONSUMER, WITHIN THIRTY DAYS AFTER
 RECEIPT OF THE NOTICE, DISPUTES THE VALIDITY OF THE DEBT, OR ANY PORTION
 THEREOF, THE DEBT WILL BE ASSUMED VALID BY THE DEBT COLLECTOR, AND
   (V) A STATEMENT THAT, IF THE CONSUMER NOTIFIES THE DEBT  COLLECTOR  IN
 WRITING  WITHIN  THE  THIRTY-DAY PERIOD AT THE ADDRESS DESIGNATED BY THE
 DEBT COLLECTOR IN THE NOTICE, THAT THE DEBT, OR ANY PORTION  THEREOF  IS
 DISPUTED,  THE  DEBT  COLLECTOR  WILL  OBTAIN  VERIFICATION  OF THE DEBT
 AGAINST THE CONSUMER AND A COPY OF SUCH VERIFICATION WILL BE  MAILED  TO
 THE CONSUMER BY THE DEBT COLLECTOR.
   (B)  IF THE CONSUMER NOTIFIES THE DEBT COLLECTOR IN WRITING WITHIN THE
 THIRTY DAY PERIOD DESCRIBED IN PARAGRAPH (A) OF  THIS  SUBDIVISION  THAT
 THE  DEBT,  OR  ANY  PORTION  THEREOF  IS DISPUTED, OR IF NOTICE OF SUCH
 DISPUTE IS GIVEN TO THE DEBT COLLECTOR IN ACCORDANCE WITH THIS  ARTICLE,
 THE  DEBT  COLLECTOR  SHALL NOT ATTEMPT TO COLLECT THE AMOUNT IN DISPUTE
 UNTIL THE DEBT COLLECTOR OBTAINS AND MAILS TO THE CONSUMER  VERIFICATION
 OF  THE DEBT.   A DEBT COLLECTOR THAT RECEIVES SUCH WRITTEN NOTICE SHALL
 PROVIDE A COPY THEREOF TO THE OWNER OF THE DEBT.
   (C) THE DEBT COLLECTOR SHALL MAINTAIN FOR ONE YEAR FROM THE  DATE  THE
 DEBTOR'S RIGHTS NOTICE WAS MAILED, DOCUMENTATION OF THE DATE SUCH NOTICE
 WAS  MAILED,  THE DATE THE RESPONSE, IF ANY, WAS RECEIVED AND ANY ACTION
 TAKEN FOLLOWING SUCH RESPONSE.
   (D) THE FAILURE OF A CONSUMER TO DISPUTE THE VALIDITY OF A DEBT  UNDER
 THIS  SECTION  SHALL  NOT  BE  CONSTRUED BY ANY COURT AS AN ADMISSION OF
 LIABILITY BY THE CONSUMER.
   (E) THE SENDING OR DELIVERY OF ANY  FORM  OR  NOTICE  WHICH  DOES  NOT
 RELATE  TO  DEBT  COLLECTION  AND  IS EXPRESSLY REQUIRED BY THE INTERNAL
 REVENUE CODE OF 1986, TITLE V OF  THE  GRAMM-LEACH-BLILEY  ACT,  OR  ANY
 PROVISION  OF  FEDERAL  OR STATE LAW RELATING TO NOTICE OF DATA SECURITY
 BREACH OR PRIVACY, OR ANY REGULATION PRESCRIBED UNDER ANY SUCH PROVISION
 OF LAW, SHALL NOT BE TREATED AS AN INITIAL COMMUNICATION  IN  CONNECTION
 WITH DEBT COLLECTION FOR PURPOSES OF THIS SECTION.

 A. 8099                             9
 
   (F)  IF  THE CONSUMER NOTIFIES THE DEBT COLLECTOR IN WRITING AFTER THE
 THIRTY-DAY PERIOD DESCRIBED IN PARAGRAPH (A) OF  THIS  SUBDIVISION  THAT
 THE  DEBT,  OR ANY PORTION THEREOF IS DISPUTED, THE DEBT COLLECTOR SHALL
 OBTAIN VERIFICATION OF THE DEBT,  AND  MAIL  SUCH  VERIFICATION  TO  THE
 CONSUMER.  THE  DEBT  COLLECTOR  MAY  CONTINUE TO ATTEMPT TO COLLECT THE
 AMOUNT IN DISPUTE.
   § 603-A. SELLING OR TRANSFERRING OF DEBTS. EVERY DEBT PURCHASER OR HIS
 OR HER AGENT SHALL SEND A NOTICE TO THE LAST KNOWN ADDRESS OF THE DEBTOR
 ADVISING THE DEBTOR WHEN THE DEBT PURCHASER SELLS OR TRANSFERS THE DEBT,
 PRIOR TO OR CONTEMPORANEOUS WITH THE SALE OF THE DEBT. A  COPY  OF  SUCH
 NOTICE  SHALL BE TRANSMITTED TO THE PERSON, FIRM, ORGANIZATION OR ENTITY
 TO WHOM THE DEBT PURCHASER OR HIS OR HER AGENT HAS  AGREED  TO  SELL  OR
 TRANSFER  THE DEBT ALONG WITH A COPY OF ANY NOTICE IN REGARD TO THE DEBT
 PROVIDED TO THE DEBT PURCHASER  IN  ACCORDANCE  WITH  PARAGRAPH  (B)  OF
 SUBDIVISION  SEVEN  OF SECTION SIX HUNDRED THREE OF THIS ARTICLE. A DEBT
 PURCHASER SHALL PROVIDE A COPY OF SUCH  NOTICE  TO  ANY  DEBT  COLLECTOR
 HIRED TO COLLECT SUCH DEBT.
   §  603-B.  PRIVATE  RIGHT  OF ACTION. (A) NOTWITHSTANDING ANY RIGHT OF
 ACTION GRANTED TO ANY GOVERNMENTAL BODY PURSUANT TO  THIS  ARTICLE,  ANY
 PERSON  WHO  HAS BEEN INJURED BY REASON OF VIOLATION OF THIS ARTICLE MAY
 BRING AN ACTION AGAINST ANY PERSON OR PERSONS, TO ENJOIN  SUCH  UNLAWFUL
 ACT,  AND  TO RECOVER AN AMOUNT EQUAL TO (1) ANY ACTUAL DAMAGE SUSTAINED
 BY SUCH PERSON AS A RESULT OF SUCH  FAILURE,  AND  (2)  SUCH  ADDITIONAL
 DAMAGES  AS  THE  COURT  MAY  ALLOW  BUT NOT EXCEEDING TWO THOUSAND FIVE
 HUNDRED DOLLARS, AND REASONABLE ATTORNEY'S FEES.
   (B) INTENT. A DEBT COLLECTOR MAY NOT BE  HELD  LIABLE  IN  ANY  ACTION
 BROUGHT UNDER THIS ARTICLE, ABSENT ACTUAL DAMAGE TO THE CONSUMER, IF THE
 DEBT  COLLECTOR  SHOWS BY A PREPONDERANCE OF EVIDENCE THAT THE VIOLATION
 WAS NOT INTENTIONAL AND RESULTED FROM A BONA FIDE ERROR  NOTWITHSTANDING
 THE  MAINTENANCE  OF  PROCEDURES  REASONABLY  ADAPTED  TO AVOID ANY SUCH
 ERROR.
   (C) LIMITATIONS. AN ACTION TO ENFORCE ANY LIABILITY  CREATED  BY  THIS
 ARTICLE  MAY  BE  BROUGHT  IN ANY OTHER COURT OF COMPETENT JURISDICTION,
 WITHIN TWO YEARS FROM THE DATE ON WHICH THE VIOLATION OCCURS.
   § [602] 603-C.   Violations and  penalties.  1.  Except  as  otherwise
 provided  by  law,  any person who [shall violate] VIOLATES the terms of
 this article [shall be] IS  guilty  of  a  misdemeanor,  and  each  such
 violation shall be deemed a separate offense.
   2.  The  attorney  general  or the district attorney of any county may
 bring an action in the name of the people of the state  to  restrain  or
 prevent  any  violation  of  this article or any continuance of any such
 violation.
   3. Any aggrieved person or entity served with more than fifty informa-
 tion subpoenas per month by a [principal] creditor or his or  her  agent
 shall  also have a cause of action to challenge compliance with subdivi-
 sion ten of section six hundred one of this article and/or  the  certif-
 ication  requirements of rule fifty-two hundred twenty-four of the civil
 practice law and rules. In such action, a successful plaintiff shall  be
 awarded  ten  dollars  for  each  information  subpoena served upon such
 plaintiff where it is shown that the  required  certification  for  such
 information  subpoena  was  not  made pursuant to rule fifty-two hundred
 twenty-four of the civil practice  law  and  rules,  that  the  required
 record  for  such  information  subpoena  was not maintained pursuant to
 subdivision ten of section six hundred one of this article, or that  the
 specific grounds for the certification required to accompany such infor-
 mation  subpoena  pursuant  to rule fifty-two hundred twenty-four of the

 A. 8099                            10
 
 civil practice law and rules were not reasonable. A successful plaintiff
 may also be awarded court costs and attorney fees.
   §  [603] 603-D.  Severability. If any provision of this article or the
 application thereof to any person or circumstances is held  invalid  the
 invalidity  thereof shall not affect other provisions or applications of
 the article which can be given effect without the invalid  provision  or
 application,  and  to  this [and] END the provisions of this article are
 severable.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the  date  on  which it shall have become a law, provided, however,
 that section 602, subdivision 7 of section 603 and section 603-a of  the
 general  business  law,  as added by this act, shall apply only to debts
 incurred on or after the effective date of such sections.