|SAME AS||SAME AS S01106|
|MLTSPNSR||Brennan, 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.|
|01/07/2015||referred to consumer affairs and protection|
|01/06/2016||referred to consumer affairs and protection|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A85 SPONSOR: Dinowitz (MS)
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 prohib- it 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 overwhelm- ing 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.
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STATE OF NEW YORK ________________________________________________________________________ 85 2015-2016 Regular Sessions IN ASSEMBLY (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. LBD01107-01-5A. 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 § 2. This act shall take effect on the one hundred eightieth day after 54 it shall have become a law.