Bill Text: NY S07104 | 2019-2020 | General Assembly | Amended

---

Bill Title: Relates to establishing a set grace period for the use of credit card reward points when an account is modified, cancelled, closed or terminated; ninety days shall be provided for the use of such points from the date notice of modification, cancellation, or termination of the card is provided.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed - Dead) 2020-07-22 - referred to consumer affairs and protection [S07104 Detail]

Download: New_York-2019-S07104-Amended.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                         7104--A

                    IN SENATE

                                       (Prefiled)

                                     January 8, 2020
                                       ___________

        Introduced  by  Sens.  MAYER,  JACKSON,  KRUEGER, MYRIE, SALAZAR -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee   on  Consumer  Protection  --  committee  discharged,  bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee

        AN  ACT to amend the general business law, in relation to establishing a
          set grace period for the use of credit card reward points

          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  520-e to read as follows:
     3    § 520-e. Grace period for use of credit card reward points. 1. As used
     4  in this section, the following terms shall have the following meanings:
     5    (a) "credit card points" or "points" shall mean denominated units that
     6  can  be  accumulated  in  an  account  in  connection with a credit card
     7  reward, loyalty, or other incentive program, often referred to as points
     8  or for certain travel-related rewards as miles,  which  are  redeemable,
     9  fungible, or otherwise exchangeable, in whole or in part, for rewards;
    10    (b) "rewards" shall mean goods, services, cash, merchant-specific gift
    11  cards, travel benefits, or one or more other things of value; and
    12    (c) "rewards program" shall mean any agreement between a holder and an
    13  issuer regarding points related to an account.
    14    2.  If  any  credit  card  account  or  rewards  program  is modified,
    15  cancelled, closed or terminated, the holder must receive notice from the
    16  issuer of such cancellation, closure,  termination  or  modification  as
    17  soon as possible, and in any event within fifteen days of such cancella-
    18  tion,  closure,  termination or modification. Beginning with the date on
    19  which notice is sent, the holder  shall  have  ninety  days  to  redeem,
    20  exchange,  or otherwise use any credit card points that the holder accu-
    21  mulated at the time of  such  modification,  cancellation,  closure,  or
    22  termination  as permitted under the terms of the agreement or agreements
    23  between the holder and the issuer  which  is  servicing  the  applicable

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14416-04-0
        S. 7104--A                          2

     1  credit  card  account  or related rewards program, subject to the avail-
     2  ability of rewards.
     3    3.  It  shall  be  unlawful  for any agreement between an issuer and a
     4  holder, or any rewards program, to provide for the expiration of  credit
     5  card points.
     6    4.  The  provisions of subdivision two of this section shall not apply
     7  in the case of fraud by the holder  with  respect  to  the  credit  card
     8  account  or  any related rewards program, or misuse by the holder of the
     9  credit card account or any related rewards program.
    10    5. Any agreement entered into by  a  holder  that  waives,  limits  or
    11  disclaims the rights set forth in this section shall be void as contrary
    12  to public policy.
    13    §  2. This act shall take effect one year after it shall have become a
    14  law.