Bill Text: NY S03491 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family.

Spectrum: Strong Partisan Bill (Democrat 10-1)

Status: (Passed) 2018-12-28 - SIGNED CHAP.471 [S03491 Detail]

Download: New_York-2017-S03491-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3491
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 23, 2017
                                       ___________
        Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Consumer Protection
        AN ACT to amend the general business law, in relation to  disclosure  by
          principal  creditors  and  debt collection agencies of the legal obli-
          gations of a deceased debtor's family and household members
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The general business law is amended by adding a new section
     2  601-a to read as follows:
     3    §  601-a.  Disclosure  by  principal  creditors and/or debt collection
     4  agencies. 1. All principal creditors  and/or  debt  collection  agencies
     5  shall  disclose to any relative or household member of a deceased debtor
     6  that is contacted that he or she may not be legally  required  to  repay
     7  such  deceased  debtor's  debts.    In addition, the principal creditors
     8  and/or debt collection agencies shall  not  make  any  misrepresentation
     9  about the family member's obligation to pay such debts.
    10    2.  Disclosure required under subdivision one of this section shall be
    11  made both orally and in writing.
    12    3. In addition to any right of action granted to the attorney  general
    13  pursuant  to  this  article, any aggrieved person may bring an action to
    14  enjoin such unlawful practice and to recover a  civil  penalty  of  five
    15  thousand  dollars  for each violation, together with any actual damages.
    16  The court shall award reasonable attorney fees and costs to a prevailing
    17  plaintiff. For purposes of this section, each communication  that  fails
    18  to comply with this section shall constitute a separate violation. Class
    19  actions  to  recover  the  damages set forth in this section are specif-
    20  ically authorized.
    21    § 2. Section 600 of the general business law is amended  by  adding  a
    22  new subdivision 4 to read as follows:
    23    4.  "Debt  collection agency" shall mean a person, firm or corporation
    24  engaged in business, the principal purpose  of  which  is  to  regularly
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08621-01-7
        S. 3491                             2
     1  collect  or  attempt to collect debts: (a) owed or due or asserted to be
     2  owed or due to another; or (b) obtained by, or assigned to, such person,
     3  firm or corporation, that are in default when obtained  or  acquired  by
     4  such person, firm or corporation.
     5    §  3.  This  act shall take effect on the ninetieth day after it shall
     6  have become a law.