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

                                   894

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 8, 2015
                               ___________

Introduced  by  M.  of  A.  ROSENTHAL, GLICK, JAFFEE, DenDEKKER, HOOPER,
  COOK, SCARBOROUGH, ROBINSON, MILLER, ABINANTI, WEPRIN  --  Multi-Spon-
  sored  by  --  M. of A. CAHILL, GUNTHER, MAGEE, PERRY -- read once and
  referred to the Committee on Consumer Affairs and Protection

AN ACT to amend the general business law,  in  relation  to  prohibiting
  debt  collectors  from collecting or attempting to collect a debt owed
  by a deceased debtor that is known to be deceased

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

  Section 1. The general business law is amended by adding a new section
601-a to read as follows:
  S  601-A.  PROHIBITED PRACTICES REGARDING DECEASED DEBTORS. 1. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
MEANINGS:
  (A) "DEBT" MEANS ANY OBLIGATION OR ALLEGED OBLIGATION OF A CONSUMER TO
PAY  MONEY  ARISING  OUT  OF A TRANSACTION IN WHICH THE MONEY, PROPERTY,
INSURANCE, OR SERVICES WHICH ARE THE  SUBJECT  OF  THE  TRANSACTION  ARE
PRIMARILY  FOR  PERSONAL,  FAMILY, OR HOUSEHOLD PURPOSES, WHETHER OR NOT
SUCH OBLIGATION HAS BEEN REDUCED TO JUDGMENT;
  (B) "DEBT COLLECTOR" MEANS AN INDIVIDUAL WHO, AS PART OF  HIS  OR  HER
JOB, REGULARLY COLLECTS OR ATTEMPTS TO COLLECT DEBTS: (I) OWED OR DUE OR
ASSERTED  TO BE OWED OR DUE TO ANOTHER; OR (II) OBTAINED BY, OR ASSIGNED
TO, SUCH PERSON, FIRM OR CORPORATION, THAT ARE IN DEFAULT WHEN  OBTAINED
OR ACQUIRED BY SUCH PERSON, FIRM OR CORPORATION; AND
  (C)  "ATTEMPTING TO COLLECT A DEBT" MEANS ANY ACTION TAKEN OR COMMUNI-
CATION MADE BY A PRINCIPAL CREDITOR OR DEBT COLLECTOR TO ANY PERSON  WHO
IS AUTHORIZED TO RECEIVE SUCH COMMUNICATIONS ABOUT A DEBT.
  2.    ANY PRINCIPAL CREDITOR OR DEBT COLLECTOR ATTEMPTING TO COLLECT A
DEBT INCURRED BY A DECEASED DEBTOR FROM A PERSON WHO THE PRINCIPAL CRED-
ITOR OR DEBT COLLECTOR KNOWS IS NOT LEGALLY REQUIRED TO  PAY  SUCH  DEBT
SHALL  DISCLOSE TO SUCH PERSON THAT HE OR SHE IS NOT LEGALLY REQUIRED TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03927-01-5
              

A. 894                              2

PAY SUCH DEBTS.  IN ADDITION, SUCH PRINCIPAL CREDITOR OR DEBT  COLLECTOR
SHALL  NOT  MAKE ANY MISREPRESENTATION ABOUT SUCH PERSON'S OBLIGATION TO
PAY SUCH DEBT.
  3.  (A)  IN  ADDITION  TO  ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY
GENERAL PURSUANT TO THIS ARTICLE, ANY PERSON AGGRIEVED BY REASON OF  ANY
VIOLATION  OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO
ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER  HIS  OR  HER
ACTUAL  DAMAGES  OR  FIVE HUNDRED DOLLARS, WHICHEVER IS GREATER, OR BOTH
SUCH ACTIONS. IN THE CASE OF ANY SUCCESSFUL ACTION TO ENFORCE THE  FORE-
GOING  LIABILITY,  THE  COURT MAY AWARD THE COSTS OF THE ACTION TOGETHER
WITH REASONABLE ATTORNEY'S FEES. EACH COMMUNICATION THAT FAILS TO COMPLY
WITH THE REQUIREMENTS  OF  THIS  SECTION  SHALL  CONSTITUTE  A  SEPARATE
VIOLATION.
  (B)  ANY  CONSUMER  ENTITLED TO BRING AN ACTION UNDER THIS SUBDIVISION
MAY, IF THE UNLAWFUL ACT OR PRACTICE HAS CAUSED DAMAGE TO OTHER  CONSUM-
ERS  SIMILARLY  SITUATED,  BRING AN ACTION ON BEHALF OF HIMSELF AND SUCH
OTHER CONSUMERS TO RECOVER DAMAGES OR OBTAIN OTHER  RELIEF  AS  PROVIDED
FOR IN THIS SUBDIVISION. ANY ACTION BROUGHT UNDER THIS SUBDIVISION SHALL
COMPLY WITH ARTICLE NINE OF THE CIVIL PRACTICE LAW AND RULES.
  S  2.  Subdivision  1  of  section 602 of the general business law, as
added by chapter 753 of the laws of 1973, is amended to read as follows:
  1. Except as otherwise provided by law, any person who [shall violate]
WILLFULLY VIOLATES the terms of this  article  [shall  be],  EXCEPT  THE
TERMS  CONTAINED IN SECTION SIX HUNDRED ONE-A OF THIS ARTICLE, IS guilty
of a misdemeanor, and each such violation shall  be  deemed  a  separate
offense.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.