1. The Laws of New York
  2. Consolidated Laws
  3. General Business
  4. Article 26: Miscellaneous

Section 393-B Written solicitation

General Business (GBS)

1. Any written solicitation to enter into an agreement for various credit card protection services shall disclose that the purchase of credit card protection services or the renewal thereof is not required for a consumer to secure or retain his or her credit card; and a concise statement regarding his or her rights that already exist free of charge under the "Fair Credit Billing Act" and the regulations thereunder, as such acts and regulations may from time to time be amended. A credit card protection service means a service to protect, indemnify, or reimburse the credit card holder against the loss or misuse of the credit card. Such term shall include services provided along with credit card protection services for the same price, including, but not be limited to, access to credit reports, an explanation of credit entries on the report, the identification of those who have accessed the report, and insurance and security services. No agreement for services shall provide that services will be automatically renewed on an annual basis and the consumer billed, unless the consumer in the expiring agreement is notified not more than sixty days and not less than fifteen days prior to the termination of the existing agreement by mail of the credit protection service provider's intention to automatically renew the agreement.

  2. Whenever there shall be a violation of this section, application may be made by the attorney general in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitution. Whenever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than one thousand dollars for each violation. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules.