NY State Senate Bill 2015-S2032

Senate Bill S2032

2015-2016 Legislative Session

Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family and household members

download bill text pdf

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to consumer protection
Jan 21, 2015	referred to consumer protection

2015-S2032 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §601-a, amd §600, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5046
2011-2012: S3281
2013-2014: S3317
2017-2018: S3491

2015-S2032 (ACTIVE) - Summary

Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family; requires such disclosure be both verbal and written.

2015-S2032 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2032

TITLE OF BILL:  An act to amend the general business law, in relation
to disclosure by principal creditors and debt collection agencies of
the legal obligations of a deceased debtor's family and household
members

PURPOSE OR GENERAL IDEA OF BILL:

This bill would require that debt collection agencies that are
attempting to collect outstanding debts of deceased. individuals from
surviving family and household members inform them, both orally and in
writing, that they are not legally obligated to repay the debts of the
deceased.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the general business law by adding a new section
601-a. This section requires that all principal creditors and/or debt
collection agencies must disclose to any relative or household member
of a deceased debtor that is contacted that he or she may not be
legally required to repay such deceased debtor's debts. This
disclosure must be made both orally and in writing. Any aggrieved
person may bring an action against such a practice and recover a civil
penalty. Class actions to recover damages are specifically authorized.

Section two amends section 600 of the general business law by adding a
new subdivision 4. This section defines 'debt collection agency'.

Section three sets out the effective date.

JUSTIFICATION:

Recent investigations have shown that debt collection companies often
pursue payments from relatives of deceased debtors. A New York Times
article described the practices of a debt collection agency whose
agents are specially trained to employ "empathic active listening"
techniques to comfort grieving families while luring them into paying
the deceased's debts. This may be a violation of the Fair Debt
Collection Practices Act since this law prevents collection companies
from contacting anyone other than the debtor about outstanding bills.
Even if this practice is not illegal, this legislation will ensure
that debt collectors are required to notify the relatives or household
members that they contact that they have no legal obligation to pay
off the debt of the deceased. As it stands, all relatives of deceased
debtors are not required by law to assume self loved ones' debts but
collection agencies often omit this information when they ask the
relatives to make payments on outstanding bills.

PRIOR LEGISLATIVE HISTORY:

2009-10: S.5046A - Referred to Consumer Protection

FISCAL IMPLICATIONS:

None.


EFFECTIVE DATE:

This act shall take effect on the ninetieth day after it shall have
become law.

2015-S2032 (ACTIVE) - Bill Text download pdf

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

                                  2032

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 21, 2015
                               ___________

Introduced  by  Sen. HASSELL-THOMPSON -- 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 disclosure by
  principal creditors and debt collection agencies of  the  legal  obli-
  gations of a deceased debtor's family and household members

  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. DISCLOSURE BY  PRINCIPAL  CREDITORS  AND/OR  DEBT  COLLECTION
AGENCIES.  1.  ALL  PRINCIPAL  CREDITORS AND/OR DEBT COLLECTION AGENCIES
SHALL DISCLOSE TO ANY RELATIVE OR HOUSEHOLD MEMBER OF A DECEASED  DEBTOR
THAT  IS  CONTACTED  THAT HE OR SHE MAY NOT BE LEGALLY REQUIRED TO REPAY
SUCH DECEASED DEBTOR'S DEBTS.   IN  ADDITION,  THE  PRINCIPAL  CREDITORS
AND/OR  DEBT  COLLECTION  AGENCIES  SHALL NOT MAKE ANY MISREPRESENTATION
ABOUT THE FAMILY MEMBER'S OBLIGATION TO PAY SUCH DEBTS.
  2. DISCLOSURE REQUIRED UNDER SUBDIVISION ONE OF THIS SECTION SHALL  BE
MADE BOTH ORALLY AND IN WRITING.
  3.  IN ADDITION TO ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
PURSUANT TO THIS ARTICLE, ANY AGGRIEVED PERSON MAY BRING  AN  ACTION  TO
ENJOIN  SUCH  UNLAWFUL  PRACTICE  AND TO RECOVER A CIVIL PENALTY OF FIVE
THOUSAND DOLLARS FOR EACH VIOLATION, TOGETHER WITH ANY  ACTUAL  DAMAGES.
THE COURT SHALL AWARD REASONABLE ATTORNEY FEES AND COSTS TO A PREVAILING
PLAINTIFF.  FOR  PURPOSES OF THIS SECTION, EACH COMMUNICATION THAT FAILS
TO COMPLY WITH THIS SECTION SHALL CONSTITUTE A SEPARATE VIOLATION. CLASS
ACTIONS TO RECOVER THE DAMAGES SET FORTH IN  THIS  SECTION  ARE  SPECIF-
ICALLY AUTHORIZED.
  S  2.  Section  600 of the general business law is amended by adding a
new subdivision 4 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07798-01-5

S. 2032                             2

  4. "DEBT COLLECTION AGENCY" SHALL MEAN A PERSON, FIRM  OR  CORPORATION
ENGAGED  IN  BUSINESS,  THE  PRINCIPAL  PURPOSE OF WHICH IS TO REGULARLY
COLLECT OR ATTEMPT TO COLLECT DEBTS: (A) OWED OR DUE OR ASSERTED  TO  BE
OWED OR DUE TO ANOTHER; OR (B) OBTAINED BY, OR ASSIGNED TO, SUCH PERSON,
FIRM  OR  CORPORATION,  THAT ARE IN DEFAULT WHEN OBTAINED OR ACQUIRED BY
SUCH PERSON, FIRM OR CORPORATION.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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