Bill Text: NY S01277 | 2015-2016 | General Assembly | Amended

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Bill Title: Enacts the "consumer credit fairness act"; establishes a 3 year statute of limitations for commencement of a cause of action arising out of a consumer credit transaction where the defendant is a purchaser, borrower or debtor; establishes a notice of lawsuit which must be mailed to the defendant in such a cause of action; establishes certain requirements for the complaint in such an action; provides for arbitration of such actions; requires debt collectors to send consumers a written notice of their rights under state law along with their initial debt collection correspondence; such notice would contain information such as who and when a principal creditor may contact a debtor about the debt owed as well as the fact that a principal creditor cannot disclose information affecting a consumer debtor's reputation for creditworthiness if the principal creditor knows or has reason to know such information is false; applies to consumer rather than commercial debts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-12 - PRINT NUMBER 1277A [S01277 Detail]

Download: New_York-2015-S01277-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         1277--A
                               2015-2016 Regular Sessions
                    IN SENATE
                                     January 9, 2015
                                       ___________
        Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary  --  recommitted
          to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee
        AN ACT to amend the civil practice law and rules, in relation to consum-
          er credit transactions
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "consumer credit fairness act".
     3    § 2. Subdivision 2 of section 213 of the civil practice law and rules,
     4  as amended by chapter 709 of the laws of 1988, is  amended  to  read  as
     5  follows:
     6    2.  an  action  upon a contractual obligation or liability, express or
     7  implied, except as provided in section two  hundred  thirteen-a  or  two
     8  hundred  fourteen-f  of  this  article or article [2] two of the uniform
     9  commercial code or article [36-B] thirty-six-B of the  general  business
    10  law;
    11    §  3.  The  civil  practice  law  and rules is amended by adding a new
    12  section 214-f to read as follows:
    13    § 214-f. Certain actions arising out of consumer  credit  transactions
    14  to  be commenced within three years. An action arising out of a consumer
    15  credit transaction where a purchaser, borrower or debtor is a  defendant
    16  must  be commenced within three years, except as provided in section two
    17  hundred thirteen-a of this article or article two of the uniform commer-
    18  cial code or article thirty-six-B of the general business law. When  the
    19  period  within  which  an action may be commenced under this section has
    20  expired, the right to collect consumer credit debt  is  extinguished  as
    21  well as the remedy.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00386-02-6