A00085 Summary:

BILL NO    A00085 

SAME AS    SAME AS S01106

SPONSOR    Dinowitz (MS)

COSPNSR    Galef, Hooper

MLTSPNSR   Brennan, Clark, Giglio, Glick

Amd S520, Gen Bus L

Prohibits the mailing of credit card applications to persons under twenty-one
years of age except when requested; provides for a penalty of no more than one
thousand dollars per violation.
Go to top

A00085 Actions:

BILL NO    A00085 

01/07/2015 referred to consumer affairs and protection
Go to top

A00085 Votes:

There are no votes for this bill in this legislative session.
Go to top

A00085 Memo:

 BILL NUMBER:  A85

 TITLE OF BILL :  An act to amend the general business law, in
relation to prohibiting mailing of credit card applications to persons
under twenty-one years of age

 PURPOSE OR GENERAL IDEA OF BILL :

Prohibits the unsolicited mailing of credit card applications to
persons under 21 years of age and imposes a fine for the violation of
such prohibition.

 SUMMARY OF PROVISIONS :

Section 1. Amends the opening paragraph and subdivision 9 of Section
520 of the General Business Law, the opening paragraph as added by
Chapter 200 of the Laws of 1987 and subdivision 9 as added by chapter
485 of the Laws of 1996, and adds three new subdivisions 10, 11, and
12, to prohibit the mailing of credit card applications to persons
under 21 and set a fine for a violation.

Section 2. Effective date.

 JUSTIFICATION :

Credit Card Debt is a fast growing problem for people under 21. The
easy availability of credit cards coupled with a young person's lack
of financial experience can easily lead to an accumulation of an
overwhelming amount of debt. While it would be unfair to bar those
people under 21 from trying to obtain a credit card, the credit card
companies' targeting of this population specifically because they are
not fully prepared for financial responsibility is something that must
be addressed.

 PRIOR LEGISLATIVE HISTORY :

2013-14- A.452 - Referred to Consumer Protection/S.2395 -Referred to
Consumer Protection
2011-12- A.5934- Referred to Consumer Protection/S.3756- Referred to
Consumer Protection
2009-10- A.489- Referred to Consumer Protection/S.991- Referred to
Consumer Protection
2007-08- A.453- Referred to Consumer Protection/S.215 -Referred to
Consumer Protection
2005-06- A.1050- Referred to Consumer Protection/S.1554= Referred to
Consumer Protection
2003-04- A.3492A- Referred to Consumer Protection/S.4214 Referred to
Consumer Protection
2001-02- A.11918- Referred to Consumer Protection

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the one hundred eightieth day after it
shall have become a law.
Go to top

A00085 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                          85

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                      (PREFILED)

                                    January 7, 2015
                                      ___________

       Introduced  by M. of A. DINOWITZ, GALEF, HOOPER -- Multi-Sponsored by --
         M. of A. BRENNAN, CLARK, GIGLIO, GLICK -- read once  and  referred  to
         the Committee on Consumer Affairs and Protection

       AN  ACT  to  amend  the general business law, in relation to prohibiting
         mailing of credit card applications to persons under twenty-one  years
         of age

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. The opening paragraph and subdivision 9 of section  520  of
    2  the  general business law, the opening paragraph as added by chapter 200
    3  of the laws of 1987 and subdivision 9 as added by  chapter  485  of  the
    4  laws  of  1996, are amended and three new subdivisions 10, 11 and 12 are
    5  added to read as follows:
    6    [Any] EXCEPT AS PROVIDED IN  SUBDIVISION  TEN  OF  THIS  SECTION,  ANY
    7  application  form  or  preapproved  written solicitation to enter into a
    8  credit card agreement for personal, family, or household purposes  which
    9  is  mailed  to  an individual residing in this state on or after January
   10  first, nineteen hundred eighty-eight, by or on behalf of [a] AN  issuer,
   11  whether or not the issuer is located in this state, other than an appli-
   12  cation  form or solicitation included in a magazine, newspaper, or other
   13  publication distributed by someone  other  than  the  issuer,  and,  any
   14  application  primarily for a credit card to be used for personal, family
   15  or household purposes which is distributed or  made  available  in  this
   16  state  to  a  resident of this state on or after January first, nineteen
   17  hundred eighty-eight in an office or other place of  business  owned  or
   18  operated by the issuer, shall contain the following disclosures in chart
   19  form  and  shall  put  chart  headings in bold face type of at least ten
   20  point in size and material inside the chart of at least eight point type
   21  in size. Such chart shall use substantially the same format  and  termi-
   22  nology  shown  below.    In  completing  the  chart with the information

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01107-01-5
       A. 85                               2

    1  required for each category, the guidelines hereinafter contained in  the
    2  corresponding subdivisions numbered one through four shall be utilized:

    3  _________________________________________________________________________
    4  |             |              |              |             |Cash Advance |
    5  |             |  Variable    |              |             |Fee, Trans-  |
    6  |  Annual     | Rate Index   |  Annualized  |   Grace     | action Fee, |
    7  | Percentage  |    and       |  Membership  | Period for  |Late Fee, and|
    8  |  Rate (1)   | Spread (1a)  |    Fee (2)   |Purchases (3)| Over-the-   |
    9  |             |              |              |             |Limit Fees(4)|
   10  |             |              |              |             |             |
   11  _________________________________________________________________________
   12  |             |              |              |             |             |
   13  |             |              |              |             |             |
   14  |             |              |              |             |             |
   15  |             |              |              |             |             |
   16  |             |              |              |             |             |
   17  |             |              |              |             |             |
   18  |             |              |              |             |             |
   19  _________________________________________________________________________

   20    (9)  [Any]  EXCEPT AS PROVIDED IN SUBDIVISION TEN OF THIS SECTION, ANY
   21  application form or preapproved written solicitation  to  enter  into  a
   22  retail  installment  credit  agreement  in  which  the  retail seller or
   23  financing agency may take or retain a purchase money security  interest,
   24  as  set  forth  in  paragraph  (c) of subdivision twelve of section four
   25  hundred thirteen of the personal property law, which is mailed or other-
   26  wise made available to an individual residing in this state on or  after
   27  the  effective  date  of this subdivision, by or on behalf of an issuer,
   28  whether or not the issuer is located in this state, other than an appli-
   29  cation form or solicitation included in a magazine, newspaper, or  other
   30  publication  distributed by someone other than the issuer, shall contain
   31  a clear and conspicuous written notice or disclosure to the  buyer  that
   32  the  retail  seller  or  financing  agency  has or may retain a security
   33  interest in merchandise  covered  under  paragraph  (c)  of  subdivision
   34  twelve  of  section  four  hundred thirteen of the personal property law
   35  until the full payment  price  of  said  merchandise  is  paid.  Further
   36  provided,  however,  in  all  instances,  said  written  notice  must be
   37  provided to any buyer prior to the first transaction made under any such
   38  retail installment credit agreement in which  a  security  interest  has
   39  been or may be taken or retained.
   40    (10)  EXCEPT  AS  PROVIDED  IN  SUBDIVISION TWELVE OF THIS SECTION, IT
   41  SHALL BE UNLAWFUL FOR ANY  FINANCIAL  INSTITUTION,  RETAIL  MERCHANT  OR
   42  OTHER  PERSON  TO MAIL OR OTHERWISE DELIVER ANY CREDIT CARD APPLICATION,
   43  PREAPPROVED WRITTEN SOLICITATION OR CREDIT CARD IN  THIS  STATE  TO  ANY
   44  PERSON UNDER TWENTY-ONE YEARS OF AGE.
   45    (11) UPON CONVICTION OF A VIOLATION OF THIS SECTION, A FINE OF NO MORE
   46  THAN ONE THOUSAND DOLLARS PER OCCURRENCE SHALL BE IMPOSED.
   47    (12)  THIS  SECTION  SHALL  NOT  APPLY TO ANY CREDIT CARD APPLICATION,
   48  PREAPPROVED WRITTEN SOLICITATION OR CREDIT CARD WHEN MAILED OR OTHERWISE
   49  DELIVERED EITHER:
   50    (A) IN RESPONSE TO A REQUEST OR APPLICATION FOR A CREDIT CARD; OR
   51    (B) AS A REPLACEMENT FOR A CREDIT CARD PREVIOUSLY ISSUED TO THE PERSON
   52  TO WHOM THE CREDIT CARD IS SHIPPED OR MAILED.
   53    S 2. This act shall take effect on the one hundred eightieth day after
   54  it shall have become a law.
Go to top
Page display time = 0.0854 sec