Bill Text: NY S05703 | 2023-2024 | General Assembly | Introduced

New York Senate Bill 5703

Introduced

Bill Title: Prohibits the use of social media websites, email or text messages for the purpose of debt collection.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO CONSUMER PROTECTION [S05703 Detail]

Download: New_York-2023-S05703-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                          5703

                               2023-2024 Regular Sessions

                    IN SENATE

                                     March 13, 2023
                                       ___________

        Introduced  by  Sen.  PARKER -- 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 prohibiting the
          use of social media websites, email or text messages for the  purposes
          of collecting debts

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 601 of the  general  business  law  is  amended  by
     2  adding two new subdivisions 12 and 13 to read as follows:
     3    12. Use a social networking website as a means to collect on a consum-
     4  er  claim  from  a  debtor.  For  purposes  of this subdivision, "social
     5  networking website" means an internet-based service that allows individ-
     6  uals to: (a) construct a public or semi-public profile within a  bounded
     7  system,  created  by  the service; (b) create a list of other users with
     8  whom they share a connection within the system; and (c) view  and  navi-
     9  gate  their  list  of  connections  and  those made by others within the
    10  system. Provided, however, that "social networking  website"  shall  not
    11  include electronic mail (e-mail).
    12    13.  (a)  Initiate  any  communication with a debtor via email or text
    13  message as a means to collect consumer debt. A debt collector shall  not
    14  be  deemed to have initiated a communication with a debtor if the commu-
    15  nication by the debt collector is in response to a request made  by  the
    16  debtor for the communication or is the transmittal of monthly statements
    17  related  to  an  existing payment plan or payment receipts related to an
    18  existing payment plan.
    19    (b) This subdivision shall not apply to:
    20    (i) communications initiated solely for the  purpose  of  informing  a
    21  debtor  of  a rescheduled court appearance date or discussing a mutually
    22  convenient date for a rescheduled court appearance;
    23    (ii) original creditors collecting or attempting to collect their  own
    24  debt;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01176-01-3

        S. 5703                             2

     1    (iii)  collecting  or  attempting  to  collect  a debt which is, or is
     2  alleged to be, owed on a loan secured by a mortgage on real property; or
     3    (iv) receiving and depositing payments the debtor chooses to make.
     4    § 2. This act shall take effect immediately.