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This entry was published on 2014-09-22
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Written solicitation
General Business (GBS) CHAPTER 20, ARTICLE 26
§ 393-b. Written solicitation. 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.