1. The Laws of New York
  2. Consolidated Laws
  3. General Business
  4. Article 34: Creditor Billing Errors


Section 703 Notice of error and response

General Business (GBS)

If a creditor, having transmitted to a consumer a statement of the consumer's account, receives from the consumer at an address designated therefor by the creditor in accordance with section seven hundred five of this article, within sixty days of the mailing of said statement, a written notice, on a document other than a document provided by the creditor to accompany payment, setting forth sufficient information to enable the creditor to identify the consumer and the account, the amount and transaction shown in the statement which the consumer in good faith believes to be a billing error, and the facts providing the basis for the consumer's belief that the statement is in error; the creditor shall:

  1. Not later than thirty days after receipt of the notice, mail a written acknowledgment to the consumer; and

  2. Not later than ninety days after receipt of the notice and prior to taking any action to collect the amount believed by the consumer to be a billing error, (a) make appropriate corrections in the account of the consumer and mail to the consumer a written notice stating that the amount believed to be in error has been corrected and will be shown on the next statement mailed to the consumer or (b) send a written notice to the consumer setting forth the reasons why the creditor believes the account of the consumer was correctly shown in the statement; and

  3. Not communicate unfavorable credit information concerning the consumer to any person, including but not limited to credit bureaus or credit reporting agencies, based upon the consumer's failure to pay the amount believed by him to be a billing error, until the creditor has complied with this section.