S T A T E   O F   N E W   Y O R K
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    S. 3756                                                  A. 5934

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                              March 3, 2011
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Consumer
  Protection

IN ASSEMBLY -- Introduced by M. of A. DINOWITZ, GALEF, HOOPER --  Multi-
  Sponsored  by -- M. of A. BRENNAN, CLARK, GIGLIO, GLICK, WEISENBERG --
  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:

  Section 1. 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, are amended and three new subdivisions 10, 11 and 12 are
added to read as follows:
  [Any] EXCEPT AS PROVIDED IN  SUBDIVISION  TEN  OF  THIS  SECTION,  ANY
application  form  or  preapproved  written solicitation to enter into a
credit card agreement for personal, family, or household purposes  which
is  mailed  to  an individual residing in this state on or after January
first, nineteen hundred eighty-eight, by or on behalf of [a] AN  issuer,
whether or not the issuer is located in this state, other than an appli-
cation  form or solicitation included in a magazine, newspaper, or other
publication distributed by someone  other  than  the  issuer,  and,  any
application  primarily for a credit card to be used for personal, family
or household purposes which is distributed or  made  available  in  this
state  to  a  resident of this state on or after January first, nineteen
hundred eighty-eight in an office or other place of  business  owned  or
operated by the issuer, shall contain the following disclosures in chart

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09914-01-1
              

S. 3756                             2                            A. 5934

form  and  shall  put  chart  headings in bold face type of at least ten
point in size and material inside the chart of at least eight point type
in size. Such chart shall use substantially the same format  and  termi-
nology  shown  below.    In  completing  the  chart with the information
required for each category, the guidelines hereinafter contained in  the
corresponding subdivisions numbered one through four shall be utilized:

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|             |              |              |             |Cash Advance |
|             |  Variable    |              |             |Fee, Trans-  |
|  Annual     | Rate Index   |  Annualized  |   Grace     | action Fee, |
| Percentage  |    and       |  Membership  | Period for  |Late Fee, and|
|  Rate (1)   | Spread (1a)  |    Fee (2)   |Purchases (3)| Over-the-   |
|             |              |              |             |Limit Fees(4)|
|             |              |              |             |             |
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|             |              |              |             |             |
|             |              |              |             |             |
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  (9)  [Any]  EXCEPT AS PROVIDED IN SUBDIVISION TEN OF THIS SECTION, ANY
application form or preapproved written solicitation  to  enter  into  a
retail  installment  credit  agreement  in  which  the  retail seller or
financing agency may take or retain a purchase money security  interest,
as  set  forth  in  paragraph  (c) of subdivision twelve of section four
hundred thirteen of the personal property law, which is mailed or other-
wise made available to an individual residing in this state on or  after
the  effective  date  of this subdivision, by or on behalf of an issuer,
whether or not the issuer is located in this state, other than an appli-
cation form or solicitation included in a magazine, newspaper, or  other
publication  distributed by someone other than the issuer, shall contain
a clear and conspicuous written notice or disclosure to the  buyer  that
the  retail  seller  or  financing  agency  has or may retain a security
interest in merchandise  covered  under  paragraph  (c)  of  subdivision
twelve  of  section  four  hundred thirteen of the personal property law
until the full payment  price  of  said  merchandise  is  paid.  Further
provided,  however,  in  all  instances,  said  written  notice  must be
provided to any buyer prior to the first transaction made under any such
retail installment credit agreement in which  a  security  interest  has
been or may be taken or retained.
  (10)  EXCEPT  AS  PROVIDED  IN  SUBDIVISION TWELVE OF THIS SECTION, IT
SHALL BE UNLAWFUL FOR ANY  FINANCIAL  INSTITUTION,  RETAIL  MERCHANT  OR
OTHER  PERSON  TO MAIL OR OTHERWISE DELIVER ANY CREDIT CARD APPLICATION,
PREAPPROVED WRITTEN SOLICITATION OR CREDIT CARD IN  THIS  STATE  TO  ANY
PERSON UNDER TWENTY-ONE YEARS OF AGE.
  (11) UPON CONVICTION OF A VIOLATION OF THIS SECTION, A FINE OF NO MORE
THAN ONE THOUSAND DOLLARS PER OCCURRENCE SHALL BE IMPOSED.
  (12)  THIS  SECTION  SHALL  NOT  APPLY TO ANY CREDIT CARD APPLICATION,
PREAPPROVED WRITTEN SOLICITATION OR CREDIT CARD WHEN MAILED OR OTHERWISE
DELIVERED EITHER:
  (A) IN RESPONSE TO A REQUEST OR APPLICATION FOR A CREDIT CARD; OR

S. 3756                             3                            A. 5934

  (B) AS A REPLACEMENT FOR A CREDIT CARD PREVIOUSLY ISSUED TO THE PERSON
TO WHOM THE CREDIT CARD IS SHIPPED OR MAILED.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.