Bill Text: NY A06969 | 2011-2012 | General Assembly | Introduced

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Bill Title: Limits the liability of a debit card holder for unauthorized use of a debit card.

Spectrum: Slight Partisan Bill (Democrat 12-6)

Status: (Introduced - Dead) 2012-01-04 - referred to banks [A06969 Detail]

Download: New_York-2011-A06969-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6969
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     April 6, 2011
                                      ___________
       Introduced  by M. of A. KELLNER -- read once and referred to the Commit-
         tee on Banks
       AN ACT to amend the general business law, in relation  to  limiting  the
         liability of a debit cardholder for unauthorized use of a debit card
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 512 of the general  business  law,  as  amended  by
    2  chapter 556 of the laws of 1987, is amended to read as follows:
    3    S  512.  Limitation of liability for unauthorized use of a credit card
    4  or a debit card. 1. A provision which imposes liability  upon  a  holder
    5  for  a  cash advance or loan or for the purchase or lease of property or
    6  services obtained by the unauthorized use of a credit card  or  a  debit
    7  card  shall  not  be enforceable to the extent that it imposes a greater
    8  liability upon the holder than is imposed upon the holder  of  a  credit
    9  card  under  the  provisions  of  the act of congress entitled "Truth in
   10  Lending Act" and the regulations thereunder, as such act and regulations
   11  may from time to time be amended.
   12    2. (A) A CARDHOLDER SHALL BE LIABLE FOR  THE  UNAUTHORIZED  USE  OF  A
   13  DEBIT CARD ONLY IF:
   14    (1)  THE  CARD  IS A DEBIT CARD WHICH THE CARDHOLDER HAS REQUESTED AND
   15  RECEIVED OR HAS SIGNED OR HAS USED, OR AUTHORIZED ANOTHER  TO  USE,  FOR
   16  THE PURPOSE OF OBTAINING MONEY, PROPERTY, LABOR, OR SERVICES;
   17    (2) THE LIABILITY IS NOT IN EXCESS OF FIFTY DOLLARS;
   18    (3)  THE  CARD  ISSUER  GIVES ADEQUATE NOTICE TO THE CARDHOLDER OF THE
   19  POTENTIAL LIABILITY;
   20    (4) THE CARD ISSUER HAS PROVIDED THE CARDHOLDER WITH A DESCRIPTION  OF
   21  A MEANS BY WHICH THE CARD ISSUER MAY BE NOTIFIED OF LOSS OR THEFT OF THE
   22  CARD,  WHICH  DESCRIPTION MAY BE PROVIDED ON THE FACE OR REVERSE SIDE OF
   23  EACH MONTHLY, QUARTERLY OR OTHER PERIODIC ACCOUNT  STATEMENT  ISSUED  TO
   24  THE  CARDHOLDER  BY  THE  CARD  ISSUER,  AS APPLICABLE, OR ON A SEPARATE
   25  NOTICE ACCOMPANYING SUCH STATEMENT;
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10531-02-1
       A. 6969                             2
    1    (5) THE UNAUTHORIZED USE OCCURS BEFORE THE CARD ISSUER HAS BEEN  NOTI-
    2  FIED  THAT  AN  UNAUTHORIZED  USE  OF THE DEBIT CARD HAS OCCURRED OR MAY
    3  OCCUR AS THE RESULT OF LOSS, THEFT, OR OTHERWISE; AND
    4    (6)  THE  CARD  ISSUER  HAS PROVIDED A METHOD WHEREBY THE USER OF SUCH
    5  CARD CAN BE IDENTIFIED AS THE PERSON AUTHORIZED TO USE IT.
    6    (B) FOR PURPOSES OF THIS SECTION, A CARD ISSUER HAS BEEN NOTIFIED WHEN
    7  SUCH STEPS AS MAY BE REASONABLY REQUIRED IN THE ORDINARY COURSE OF BUSI-
    8  NESS TO PROVIDE THE CARD ISSUER WITH THE PERTINENT INFORMATION HAVE BEEN
    9  TAKEN, WHETHER OR NOT ANY PARTICULAR OFFICER, EMPLOYEE, OR AGENT OF  THE
   10  CARD ISSUER DOES IN FACT RECEIVE SUCH INFORMATION.
   11    (C) IN ANY ACTION BY A CARD ISSUER TO ENFORCE LIABILITY FOR THE USE OF
   12  A  DEBIT  CARD, THE BURDEN OF PROOF IS UPON THE CARD ISSUER TO SHOW THAT
   13  THE USE WAS AUTHORIZED OR, IF THE USE WAS UNAUTHORIZED, THEN THE  BURDEN
   14  OF  PROOF IS UPON THE CARD ISSUER TO SHOW THAT THE CONDITIONS OF LIABIL-
   15  ITY FOR THE UNAUTHORIZED USE OF A DEBIT CARD, AS SET FORTH IN  PARAGRAPH
   16  (A) OF THIS SUBDIVISION, HAVE BEEN MET.
   17    (D)  NOTHING  IN  THIS SUBDIVISION IMPOSES LIABILITY UPON A CARDHOLDER
   18  FOR THE UNAUTHORIZED USE OF A DEBIT CARD IN EXCESS OF HIS OR HER LIABIL-
   19  ITY FOR SUCH USE UNDER OTHER APPLICABLE LAW OR UNDER ANY AGREEMENT  WITH
   20  THE CARD ISSUER.
   21    (E)  EXCEPT  AS  PROVIDED  IN THIS SUBDIVISION, A CARDHOLDER SHALL NOT
   22  INCUR ANY LIABILITY FROM THE UNAUTHORIZED USE OF A DEBIT CARD.
   23    S 2. This act shall take effect on the ninetieth day  after  it  shall
   24  have  become  a law and shall apply to all transactions occurring on and
   25  after such effective date.