S T A T E O F N E W Y O R K
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2829--B
Cal. No. 547
2019-2020 Regular Sessions
I N S E N A T E
January 29, 2019
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Introduced by Sens. THOMAS, ADDABBO, BIAGGI, BROOKS, COMRIE, GAUGHRAN,
GOUNARDES, KENNEDY, KRUEGER, LIU, MARTINEZ, MONTGOMERY, PARKER,
PERSAUD, RAMOS, SALAZAR, SERRANO, STAVISKY -- read twice and ordered
printed, and when printed to be committed to the Committee on Consumer
Protection -- reported favorably from said committee, ordered to first
and second report, ordered to a third reading, amended and ordered
reprinted, retaining its place in the order of third reading -- again
amended and ordered reprinted, retaining its place in the order of
third reading
AN ACT to amend the general business law and the executive law, in
relation to debt collection notices
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-b to read as follows:
§ 601-B. DEBT COLLECTION NOTICE TO CONSUMERS. 1. (A) AS USED IN THIS
SECTION, "DEBT COLLECTION AGENCY" SHALL MEAN A PERSON, FIRM OR CORPO-
RATION ENGAGED IN BUSINESS, THE PRINCIPAL PURPOSE OF WHICH IS TO REGU-
LARLY COLLECT OR ATTEMPT TO COLLECT CONSUMER 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.
(B) DEBT COLLECTION AGENCIES SHALL NOT INCLUDE: (I) ANY PERSON SUBJECT
TO (A) SERVING, FILING, OR CONVEYING FORMAL LEGAL PLEADINGS, DISCOVERY
REQUESTS, JUDGMENTS OR OTHER DOCUMENTS PURSUANT TO THE APPLICABLE RULES
OF PROCEDURE; (B) COMMUNICATING IN, OR AT THE DIRECTION OF, A COURT OF
LAW OR IN DEPOSITIONS OR SETTLEMENT CONFERENCES OR OTHER COMMUNICATIONS
IN CONNECTION WITH A PENDING LEGAL ACTION TO COLLECT A DEBT ON BEHALF OF
A CLIENT; OR (C) COLLECTING ON OR ENFORCING A MONEY JUDGMENT;
(II) ANY ATTORNEY-AT-LAW OR LAW FIRM COLLECTING A DEBT IN SUCH CAPACI-
TY ON BEHALF OF AND IN THE NAME OF A CLIENT THROUGH LEGAL ACTIVITIES
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01314-09-9
S. 2829--B 2
SUCH AS PROSECUTION OF LAWSUITS TO REDUCE DEBTS TO JUDGMENTS, BUT NOT
ANY ATTORNEY-AT-LAW OR LAW FIRM WHICH REGULARLY ENGAGES IN ACTIVITIES
TRADITIONALLY ASSOCIATED WITH DEBT COLLECTION, INCLUDING BUT NOT LIMITED
TO, SENDING DEMAND LETTERS OR MAKING COLLECTION TELEPHONE CALLS;
(III) ANY OFFICER OR EMPLOYEE OF THE UNITED STATES, ANY STATE THEREOF
OR ANY POLITICAL SUBDIVISION OF ANY STATE TO THE EXTENT THAT COLLECTING
OR ATTEMPTING TO COLLECT ANY DEBT OWED IS IN THE PERFORMANCE OF HIS OR
HER OFFICIAL DUTIES; OR
(IV) ANY NON-PROFIT ORGANIZATION WHICH, AT THE REQUEST OF CONSUMERS,
PERFORMS BONA FIDE CONSUMER CREDIT COUNSELING AND ASSISTS CUSTOMERS IN
THE LIQUIDATION OF THEIR DEBTS BY RECEIVING PAYMENTS FROM SUCH CUSTOMERS
AND DISTRIBUTING SUCH AMOUNTS TO CREDITORS.
2. EACH AND EVERY DEBT COLLECTION AGENCY SHALL INCLUDE IN ITS INITIAL
CORRESPONDENCE ON A PAST DUE DEBT TO A CONSUMER, OR ON A SEPARATE FORM
INCLUDED WITH SUCH INITIAL CORRESPONDENCE, THE FOLLOWING WRITTEN STATE-
MENT LABELED "CONSUMER RIGHTS", IN A CLEAR AND CONSPICUOUS MANNER, AND
IN A FORM IDENTICAL OR SUBSTANTIALLY SIMILAR TO THE FOLLOWING:
"CONSUMER'S RIGHTS
AS A CONSUMER WHO OWES OR MAY OWE A CONSUMER DEBT, YOU ARE GIVEN
PROTECTION AND RIGHTS BY THE NEW YORK AND FEDERAL LAWS REGULATING DEBT
COLLECTION PROCEDURES. YOU SHOULD BE AWARE OF YOUR RIGHTS.
1. A DEBT COLLECTOR CANNOT CONTACT YOU WITH SUCH FREQUENCY, AT UNUSUAL
HOURS, OR IN A MANNER THAT CAN BE EXPECTED TO ABUSE OR HARASS YOU. A
DEBT COLLECTOR CANNOT USE FALSE OR MISLEADING STATEMENTS WHEN ATTEMPTING
TO COLLECT A DEBT, SUCH AS COLLECTING MORE THAN AMOUNT OWED, OR THREATEN
TO GARNISH YOUR WAGES OR LEVY YOUR BANK ACCOUNT WITHOUT FIRST BEING
AWARDED A JUDGMENT BY A COURT. A DEBT COLLECTOR CANNOT CONTACT YOU AFTER
YOU HAVE REQUESTED IN WRITING THAT THEY CEASE COMMUNICATIONS, EXCEPT TO
ACKNOWLEDGE RECEIPT OF YOUR LETTER.
2. A DEBT COLLECTOR CANNOT THREATEN TO CONTACT YOUR EMPLOYER REGARDING
A DEBT PRIOR TO OBTAINING A FINAL JUDGMENT AGAINST YOU UNLESS SUCH
CONTACT IS DIRECTLY RELATED TO WAGE GARNISHMENTS.
3. A DEBT COLLECTOR CANNOT USE A COMMUNICATION WHICH APPEARS TO BE
AUTHORIZED, ISSUED, OR APPROVED BY A GOVERNMENT AGENCY OR ATTORNEY WHEN
IT IS NOT.
4. A DEBT COLLECTOR CANNOT DISCLOSE OR THREATEN TO DISCLOSE INFORMA-
TION AFFECTING YOUR REPUTATION FOR CREDITWORTHINESS IF THE COLLECTOR
KNOWS OR HAS REASON TO KNOW THE INFORMATION IS FALSE. A DEBT COLLECTOR
ALSO CANNOT ATTEMPT OR THREATEN TO ENFORCE A RIGHT WHEN IT KNOWS OR HAS
REASON TO KNOW THE RIGHT DOES NOT EXIST.
FOR MORE INFORMATION ABOUT YOUR RIGHTS UNDER STATE AND FEDERAL DEBT
COLLECTION PROCEDURES LAW, CONTACT THE CONSUMER PROTECTION DIVISION OF
THE NEW YORK STATE DEPARTMENT OF STATE AT (INSERT THE CURRENT TELEPHONE
NUMBER OR INTERNET WEBSITE ESTABLISHED BY THE CONSUMER PROTECTION DIVI-
SION FOR RECEIVING INQUIRIES FROM CONSUMERS). YOU MAY ALSO CONTACT THE
NEW YORK STATE ATTORNEY GENERAL AT (INSERT THE CURRENT TELEPHONE NUMBER
ESTABLISHED BY THE DEPARTMENT OF LAW FOR RECEIVING INQUIRIES FROM
CONSUMERS) OR (INSERT THE CURRENT ADDRESS OF THE WEBSITE OF THE DEPART-
MENT OF LAW), OR THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES AT
(INSERT THE CURRENT TELEPHONE NUMBER OR INTERNET WEBSITE ESTABLISHED BY
THE DEPARTMENT OF FINANCIAL SERVICES).
IF YOU LIVE IN NEW YORK CITY, YOU MAY BE ENTITLED TO ADDITIONAL
PROTECTIONS UNDER THE LAWS AND RULES OF THE CITY OF NEW YORK. FOR INFOR-
MATION ABOUT YOUR RIGHTS UNDER CITY LAW, CONTACT THE NEW YORK CITY
DEPARTMENT OF CONSUMER AFFAIRS AT 311 OR WWW.NYC.GOV/DCA."
S. 2829--B 3
THE NOTICE REQUIRED BY THIS SUBDIVISION SHALL BE PRINTED OR WRITTEN IN
AT LEAST TEN POINT BOLD TYPE.
§ 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]
VIOLATES the terms OF SECTION SIX HUNDRED ONE of this article [shall be]
IS guilty of a misdemeanor, and each such violation shall be deemed a
separate offense. A VIOLATION BY ANY PERSON OF SECTION SIX HUNDRED ONE-B
OF THIS ARTICLE, IF SUCH VIOLATION CONSTITUTES THE FIRST SUCH OFFENSE BY
SUCH PERSON, IS PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED TWO HUNDRED
FIFTY DOLLARS. THE SECOND OFFENSE AND ANY OFFENSE COMMITTED THEREAFTER
ARE PUNISHABLE BY A CIVIL PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS.
§ 3. Subparagraphs 14 and 15 of paragraph (a) of subdivision 3 of
section 94-a of the executive law, as added by section 21 of part A of
chapter 62 of the laws of 2011, are amended to read as follows:
(14) cooperate with and assist consumers in class actions in proper
cases; [and]
(15) create an internet website or webpage pursuant to section three
hundred ninety-c of the general business law; AND
(16) CREATE AN INTERNET WEBSITE OR WEBPAGE THAT INCLUDES THE "CONSUM-
ER'S RIGHTS" FORM ESTABLISHED PURSUANT TO SUBDIVISION TWO OF SECTION SIX
HUNDRED ONE-B OF THE GENERAL BUSINESS LAW. SUCH WEBSITE OR WEBPAGE SHALL
ALSO INCLUDE, BUT NOT LIMITED TO, A SAMPLE INITIAL DEBT COLLECTION
DISPUTE LETTER, A SAMPLE DEBT COLLECTION CEASE AND DESIST LETTER, AND
THE CURRENT CONTACT INFORMATION FOR THE ATTORNEY GENERAL AND THE FEDERAL
TRADE COMMISSION.
§ 4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.
