Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 30, 2012 |
recommit, enacting clause stricken |
Jan 04, 2012 |
referred to consumer protection |
Jan 05, 2011 |
referred to consumer protection |
Senate Bill S533
2011-2012 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - Stricken
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2011-S533 (ACTIVE) - Details
- Law Section:
- General Business Law
- Laws Affected:
- Amd ยงยง515 & 520, Gen Bus L
- Versions Introduced in 2009-2010 Legislative Session:
-
S1855
2011-S533 (ACTIVE) - Summary
Requires credit card issuers to implement as a fraud prevention measure telephone confirmation including proof of identity or contact through any other medium provided by the issuer, prior to activation, except for in-person transactions; provides that applications offering pre-approved credit cards may not indicate their contents on the envelopes; applies to both solicited and unsolicited applications.
2011-S533 (ACTIVE) - Sponsor Memo
BILL NUMBER:S533 TITLE OF BILL: An act to amend the general business law, in relation to requiring issuers of credit cards to implement certain fraud prevention measures PURPOSE: The purpose of this bill is to deter credit fraud at the point of the application process. SUMMARY OF SPECIFIC PROVISIONS: This bill requires that the holder of any credit card issued after the effective date provides to the issuer proof of identity prior to the credit card's activation except where the credit account is opened in person by the authorized card holder. Lastly, the bill prohibits credit card issuers from mailing pre-approved credit card applications in envelopes whose exteriors contain any words, phrases, or indicia describing the enclosed pre-approved credit material. JUSTIFICATION: Credit card fraud continues to be a pervasive problem for both consumers and the financial industry. Credit issuers lose an estimated $1 billion annually to credit card fraud, with the majority of these losses resulting from the unauthorized use of lost and stolen credit cards, and from fraud caused by cards issued by a bank
2011-S533 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 533 2011-2012 Regular Sessions I N S E N A T E (PREFILED) January 5, 2011 ___________ Introduced by Sen. KLEIN -- 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 requiring issuers of credit cards to implement certain fraud prevention measures THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings and intent. The legislature finds that credit card fraud has a substantial negative impact on the commerce of the state of New York, and that the burden of this fraud is shared jointly by consumers and the financial industry. Most credit card fraud is caused by the use of lost or stolen cards, or by the theft of credit cards or pre-approved credit applications from the mail. The legislature further finds that certain fraud prevention measures have been effective in detecting and reducing credit card fraud, primarily in the verifica- tion process. Therefore, it is the purpose of this legislation to provide security and protection against credit card fraud by requiring that as a precondition to a credit card's activation, the authorized holder contact the issuer and provide proof of identity, in certain cases. Also, this act prohibits issuers who mail applications of pre- approved credit to residents of this state from indicating on the exte- rior of the envelope that the enclosed material contains a pre-approved credit application. S 2. Section 515 of the general business law is amended by adding a new subdivision 3 to read as follows: 3. NO CONSUMER CREDIT CARD ISSUED TO A RESIDENT OF THIS STATE SHALL BE ACTIVATED UNLESS AND UNTIL THE AUTHORIZED HOLDER CONTACTS THE ISSUER VIA A TOLL-FREE NUMBER OR THROUGH ANY OTHER MEDIUM PROVIDED BY THE ISSUER AND PROVIDES THE ISSUER WITH PROOF OF IDENTITY OR PROVIDES THE ISSUER WITH PROOF OF IDENTITY AT THE POINT OF SALE WHEN THE CONSUMER CREDIT CARD IS USED FOR THE FIRST TIME, EXCEPT WHERE THE CARD IS ISSUED IN EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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