NY State Senate Bill 2023-S5703

Senate Bill S5703

2023-2024 Legislative Session

Prohibits the use of social media websites, email or text messages for the purpose of debt collection

download bill text pdf

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to consumer protection
Mar 13, 2023	referred to consumer protection

2023-S5703 (ACTIVE) - Details

See Assembly Version of this Bill:: A1035
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §601, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S3803
2017-2018: S3273
2019-2020: S4433
2021-2022: S4764, A8622

2023-S5703 (ACTIVE) - Summary

Prohibits the use of social media websites, email or text messages for the purpose of debt collection.

2023-S5703 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5703

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting the
use of social media websites, email or text messages for the purposes of
collecting debts

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to prevent debt collectors from using online
contact information as a means to collect on a consumer debt.  Summary
of Specific Provisions:

Section 1 amends the General Business Law by adding a new subdivision 11
to section 601 that would prohibit principal creditors or their agents
from using the Internet as a means to collect on a consumer claim.

 
SUMMARY OF PROVISIONS:

Section 1: Section 601 of the general business law is amended by adding

two new subdivisions 12 and 13 to read as follows.

Section 2: This act shall take effect immediately.

 
JUSTIFICATION:

The Internet has made it possible to interact with people in ways that
were previously unimaginable: While the benefits of technology are read-
ily apparent - communicating with loved ones, reconnecting with friends,
and granting access to a wealth of knowledge and resources - there has
also been ample opportunities and occasions of abuse.  Several news
reports have revealed that debt collectors use the Internet, particular-
ly social media websites, as a means to communicate with debtors and to
try to collect on debts. This invasion of personal privacy should not be
allowed in New York.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S4764A - Print Number 4764A

2019-20: S4433 - REFERRED TO CONSUMER PROTECTION

2017-18: S3273 - REFERRED TO CONSUMER PROTECTION

2015-16: S.3803 - Referred to Consumer Protection

2013-14: A.5414B - Referred to Consumer Affairs and Protection

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S5703 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5703
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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 prohibiting the
   use of social media websites, email or text messages for the  purposes
   of collecting debts

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 601 of the  general  business  law  is  amended  by
 adding two new subdivisions 12 and 13 to read as follows:
   12. USE A SOCIAL NETWORKING WEBSITE AS A MEANS TO COLLECT ON A CONSUM-
 ER  CLAIM  FROM  A  DEBTOR.  FOR  PURPOSES  OF THIS SUBDIVISION, "SOCIAL
 NETWORKING WEBSITE" MEANS AN INTERNET-BASED SERVICE THAT ALLOWS INDIVID-
 UALS TO: (A) CONSTRUCT A PUBLIC OR SEMI-PUBLIC PROFILE WITHIN A  BOUNDED
 SYSTEM,  CREATED  BY  THE SERVICE; (B) CREATE A LIST OF OTHER USERS WITH
 WHOM THEY SHARE A CONNECTION WITHIN THE SYSTEM; AND (C) VIEW  AND  NAVI-
 GATE  THEIR  LIST  OF  CONNECTIONS  AND  THOSE MADE BY OTHERS WITHIN THE
 SYSTEM. PROVIDED, HOWEVER, THAT "SOCIAL NETWORKING  WEBSITE"  SHALL  NOT
 INCLUDE ELECTRONIC MAIL (E-MAIL).
   13.  (A)  INITIATE  ANY  COMMUNICATION WITH A DEBTOR VIA EMAIL OR TEXT
 MESSAGE AS A MEANS TO COLLECT CONSUMER DEBT. A DEBT COLLECTOR SHALL  NOT
 BE  DEEMED TO HAVE INITIATED A COMMUNICATION WITH A DEBTOR IF THE COMMU-
 NICATION BY THE DEBT COLLECTOR IS IN RESPONSE TO A REQUEST MADE  BY  THE
 DEBTOR FOR THE COMMUNICATION OR IS THE TRANSMITTAL OF MONTHLY STATEMENTS
 RELATED  TO  AN  EXISTING PAYMENT PLAN OR PAYMENT RECEIPTS RELATED TO AN
 EXISTING PAYMENT PLAN.
   (B) THIS SUBDIVISION SHALL NOT APPLY TO:
   (I) COMMUNICATIONS INITIATED SOLELY FOR THE  PURPOSE  OF  INFORMING  A
 DEBTOR  OF  A RESCHEDULED COURT APPEARANCE DATE OR DISCUSSING A MUTUALLY
 CONVENIENT DATE FOR A RESCHEDULED COURT APPEARANCE;
   (II) ORIGINAL CREDITORS COLLECTING OR ATTEMPTING TO COLLECT THEIR  OWN
 DEBT;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01176-01-3

 S. 5703                             2
 
   (III)  COLLECTING  OR  ATTEMPTING  TO  COLLECT  A DEBT WHICH IS, OR IS
 ALLEGED TO BE, OWED ON A LOAN SECURED BY A MORTGAGE ON REAL PROPERTY; OR
   (IV) RECEIVING AND DEPOSITING PAYMENTS THE DEBTOR CHOOSES TO MAKE.
   § 2. This act shall take effect immediately.

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