S T A T E   O F   N E W   Y O R K
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                                  2395

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
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Introduced  by  Sen. LAVALLE -- 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  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
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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01485-01-3
              

S. 2395                             2

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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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  (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
  (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.