S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3125
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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 debt collection
   procedures
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Article 29-H of the general business law, as added by chap-
 ter  753  of  the laws of 1973, subdivision 4 of section 600 as added by
 chapter 471 of the laws of 2018, subdivision 9 of section 601 as amended
 by chapter 342 of the laws of 2011, subdivision 11 as amended and subdi-
 vision 10 of section 601 as added by chapter 312 of the  laws  of  2018,
 section  601-a  as added by chapter 471 of the laws of 2018 and subdivi-
 sion 3 of section 602 as added by chapter 342 of the laws  of  2011,  is
 amended to read as follows:
                               ARTICLE 29-H
                        DEBT COLLECTION PROCEDURES
 Section 600.   Definitions.
         601.   Prohibited CREDITOR practices.
         601-a. Disclosure   by   [principal]   creditors   and/or   debt
                collection agencies.
         602.   [Violations and penalties] CREDITOR RESPONSIBILITIES.
         603.   [Severability] PROHIBITED DEBT COLLECTION PRACTICES.
         603-A. SELLING OR TRANSFERRING OF DEBTS.
         603-B. PRIVATE RIGHT OF ACTION.
         603-C. VIOLATIONS AND PENALTIES.
         603-D. SEVERABILITY.
   § 600. Definitions. As used in this article,  unless  the  context  or
 subject matter otherwise requires:
   1.  "[Consumer claim] DEBT" OR "CONSUMER DEBT" means any obligation OR
 ALLEGED OBLIGATION of a natural person for the payment of money [or  its
 equivalent  which  is  or  is alleged to be in default and which arises]

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

                                                            LBD06374-01-1

 S. 3125                             2
 
 ARISING out of a CONSUMER transaction wherein credit has been offered or
 extended to a natural person, and the money, property  [or],  INSURANCE,
 service OR SERVICES which [was] ARE the subject of the transaction [was]
 ARE primarily for personal, family or household purposes, WHETHER OR NOT
 SUCH  OBLIGATION  HAS  BEEN REDUCED TO A JUDGMENT.  The term includes an
 obligation of a natural person who is a co-maker, endorser, guarantor or
 surety as well as the natural person to whom such credit was  originally
 extended.
   2.  "Debtor"  means  any natural person who owes or who is asserted to
 owe a [consumer claim] CONSUMER DEBT.
   3. "[Principal creditor] CREDITOR" means  any  person,  firm,  ASSOCI-
 ATION, corporation, [or] organization [to whom] OR OTHER BUSINESS ENTITY
 THAT OFFERS OR EXTENDS CREDIT, CREATING a consumer [claim is] DEBT owed,
 due  or  asserted  to be due or owed, [or any assignee for value of said
 person, firm, corporation  or  organization]  BUT  SUCH  TERM  DOES  NOT
 INCLUDE  ANY  PERSON,  ASSOCIATION,  FIRM,  CORPORATION, ORGANIZATION OR
 OTHER BUSINESS ENTITY TO THE EXTENT THAT IT RECEIVES  AN  ASSIGNMENT  OR
 TRANSFER  OF  A  DEBT  IN DEFAULT SOLELY FOR THE PURPOSE OF FACILITATING
 COLLECTION OF SUCH DEBT FOR ANOTHER.
   4. "COMMUNICATION" MEANS THE CONVEYING OF INFORMATION REGARDING A DEBT
 DIRECTLY OR INDIRECTLY TO ANY PERSON THROUGH ANY MEDIUM.
   5. "CONSUMER" MEANS ANY NATURAL PERSON OBLIGATED  OR  ALLEGEDLY  OBLI-
 GATED  TO  PAY ANY DEBT ARISING OUT OF A TRANSACTION IN WHICH THE MONEY,
 PROPERTY, INSURANCE, OR SERVICES WHICH ARE THE  SUBJECT  OF  THE  TRANS-
 ACTION ARE PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, WHETH-
 ER OR NOT SUCH OBLIGATION HAS BEEN REDUCED TO JUDGMENT.
   6.  "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.
   7. "LOCATION INFORMATION" MEANS A CONSUMER'S PLACE OF ABODE AND HIS OR
 HER TELEPHONE NUMBER AT SUCH PLACE, OR HIS OR HER PLACE OF EMPLOYMENT.
   8.  "VERIFICATION OF THE DEBT" MEANS A COPY OF THE LAST BILL OR NOTICE
 OF COLLECTION SENT FROM THE CREDITOR TO THE DEBTOR, ANY JUDGMENT  LEVIED
 IN  CONJUNCTION  WITH SUCH DEBT, AND, IF APPLICABLE, A COPY OF THE JUDG-
 MENT RELEASE AND A COPY OF THE WRITTEN COMMUNICATION ADVISING THE DEBTOR
 THAT HIS OR HER DEBT HAS BEEN SOLD OR TRANSFERRED.
   § 601. Prohibited CREDITOR  practices.  No  [principal]  creditor,  as
 defined by this article, or his OR HER agent shall:
   1.  Simulate  in  any manner a law enforcement officer, or a represen-
 tative of any governmental agency of the state of New York or any of its
 political subdivisions; or
   2. Knowingly collect, attempt to collect, or assert  a  right  to  any
 collection  fee,  attorney's  fee,  court  cost  or  expense unless such
 [changes] CHARGES are justly due  and  legally  chargeable  against  the
 debtor; or
   3. Disclose or threaten to disclose information affecting the debtor's
 reputation  for  credit worthiness with knowledge or reason to know that
 the information is false; or
   4. Communicate or threaten to communicate the  nature  of  a  consumer
 [claim]  DEBT to the debtor's employer prior to obtaining final judgment
 against the debtor.   The  provisions  of  this  subdivision  shall  not
 prohibit  a  [principal]  creditor  from communicating with the debtor's

 S. 3125                             3
 
 employer to execute a  wage  assignment  agreement  if  the  debtor  has
 consented to such an agreement; or
   5.  Disclose or threaten to disclose information concerning the exist-
 ence of a debt known to be disputed by  the  debtor  without  disclosing
 that fact; or
   6.  Communicate  with the debtor or any member of his OR HER family or
 household AT ANY TIME OTHER THAN BETWEEN THE HOURS OF 8:00 A.M. AND 9:00
 P.M. LOCAL TIME OR with such frequency [or at such unusual hours] or  in
 such  a  manner  as  can  reasonably  be expected to abuse or harass the
 debtor; or
   7. Threaten any action which the [principal]  creditor  in  the  usual
 course of his OR HER business does not in fact take; or
   8.  Claim, or attempt or threaten to enforce a right with knowledge or
 reason to know that the right does not exist; or
   9. Use a communication which simulates in any manner legal or judicial
 process or which gives the appearance of  being  authorized,  issued  or
 approved  by  a government, governmental agency, or attorney at law when
 it is not; or
   10. Remotely disable  a  vehicle  using  a  payment  assurance  device
 defined  in  paragraph sixty-a of subsection (a) of section 9-102 of the
 uniform commercial code or by any other means in order  to  repossess  a
 debtor's vehicle without first having given written notice of the possi-
 ble  remote  disabling  of  a vehicle in the method and timetable agreed
 upon by the consumer and  the  creditor  in  the  initial  contract  for
 services.  The notice shall be mailed by registered or certified mail to
 the address at which the debtor will be residing on the expected date of
 the remote disabling of the vehicle. The notice shall be  postmarked  no
 later  than ten days prior to the date on which the [principal] creditor
 or his OR HER agent obtains the right to remotely disable  the  vehicle;
 or
   11. If such [principal] creditor or agent sends more than fifty infor-
 mation subpoenas per month, fail to keep complete records concerning all
 information  subpoenas  sent by such [principal] creditor or agent. Such
 records shall be maintained  for  five  years.  Contemporaneous  records
 shall  be  kept  that  set  forth  with specificity the grounds for such
 [principal] creditor or agent's reasonable belief, which must be  certi-
 fied  and accompany each information subpoena pursuant to rule fifty-two
 hundred twenty-four of the civil practice law and rules, that the  party
 receiving  the  subpoena  has  in  its  possession information about the
 debtor that will assist the creditor in collecting his or her judgement.
 In addition to any other penalty that may be imposed, failure  to  main-
 tain  records  in  accordance  with  this subdivision shall subject such
 [principal] creditor or agent to a civil penalty of not more than  fifty
 dollars  per  subpoena,  up  to  a  maximum of five thousand dollars per
 violation, in an action brought by the attorney general[; or].
   § 601-a. Disclosure by [principal] creditors  and/or  debt  collection
 agencies. No [principal] creditors and/or debt collection agencies shall
 make  any  representation that a person is required to pay the debt of a
 family member in a way that contravenes with the  Fair  Debt  Collection
 Practices  Act  (15  USC  §  1692 et seq.). In addition, the [principal]
 creditors and/or debt collection agencies shall not make  any  misrepre-
 sentation about the family member's obligation to pay such debts.
   §  602. CREDITOR RESPONSIBILITIES.  EVERY CREDITOR OR HIS OR HER AGENT
 SHALL SEND A NOTICE TO THE LAST KNOWN ADDRESS OF THE DEBTOR ADVISING THE
 DEBTOR WHEN HIS OR HER DEBT IS BEING SOLD OR TRANSFERRED,  PRIOR  TO  OR
 CONTEMPORANEOUS  WITH  THE SALE OF THE DEBT. A COPY OF THIS NOTICE SHALL

 S. 3125                             4
 
 BE TRANSMITTED TO THE PERSON, FIRM, ORGANIZATION OR ENTITY TO  WHOM  THE
 CREDITOR  OR  HIS  OR HER AGENT HAS AGREED TO SELL OR TRANSFER THE DEBT,
 ALONG WITH A COPY OF ANY NOTICE IN REGARD TO THE DEBT  PROVIDED  TO  THE
 CREDITOR  IN  ACCORDANCE  WITH  PARAGRAPH  (B)  OF  SUBDIVISION SEVEN OF
 SECTION SIX HUNDRED THREE OF THIS ARTICLE. A CREDITOR  SHALL  PROVIDE  A
 COPY  OF SUCH NOTICE TO ANY DEBT COLLECTION AGENCY HIRED TO COLLECT SUCH
 DEBT.
   § 603. PROHIBITED DEBT COLLECTION PRACTICES.  IT IS AN  UNCONSCIONABLE
 AND  DECEPTIVE TRADE PRACTICE FOR A DEBT COLLECTION AGENCY TO ATTEMPT TO
 COLLECT A DEBT OWED, DUE, OR ASSERTED  TO  BE  OWED  OR  DUE  EXCEPT  IN
 ACCORDANCE WITH THE FOLLOWING:
   1.  ACQUISITION  OF  LOCATION  INFORMATION. ANY DEBT COLLECTION AGENCY
 COMMUNICATING WITH ANY PERSON OTHER THAN THE CONSUMER FOR THE PURPOSE OF
 ACQUIRING LOCATION INFORMATION ABOUT THE CONSUMER IN ORDER TO COLLECT  A
 DEBT SHALL:
   (A) IDENTIFY HIMSELF OR HERSELF, STATE THAT HE OR SHE IS CONFIRMING OR
 CORRECTING  LOCATION  INFORMATION  ABOUT  THE  CONSUMER,  AND,  ONLY  IF
 EXPRESSLY REQUESTED, IDENTIFY HIS OR HER EMPLOYER;
   (B) NOT STATE OR IMPLY THAT SUCH CONSUMER OWES ANY DEBT;
   (C) NOT COMMUNICATE WITH  ANY  SUCH  PERSON  MORE  THAN  ONCE,  UNLESS
 REQUESTED  TO  DO SO BY SUCH PERSON OR UNLESS THE DEBT COLLECTION AGENCY
 REASONABLY BELIEVES THAT THE EARLIER RESPONSE OF SUCH PERSON IS  ERRONE-
 OUS  OR  INCOMPLETE  AND  THAT  SUCH  PERSON NOW HAS CORRECT OR COMPLETE
 LOCATION INFORMATION. FOR THE  PURPOSES  OF  THIS  PARAGRAPH,  THE  DEBT
 COLLECTION  AGENCY  NEED  NOT COUNT AS A COMMUNICATION RETURNED UNOPENED
 MAIL OR A MESSAGE LEFT WITH A PARTY  OTHER  THAN  THE  PERSON  THE  DEBT
 COLLECTION  AGENCY  IS  ATTEMPTING TO REACH IN ORDER TO ACQUIRE LOCATION
 INFORMATION ABOUT THE CONSUMER, AS LONG AS THE MESSAGE IS LIMITED  TO  A
 TELEPHONE  NUMBER,  THE NAME OF THE DEBT COLLECTION AGENCY AND A REQUEST
 THAT THE RECIPIENT TELEPHONE THE DEBT COLLECTION AGENCY;
   (D) NOT COMMUNICATE BY POST CARD;
   (E) NOT USE ANY LANGUAGE OR SYMBOL ON ANY ENVELOPE OR IN THE  CONTENTS
 OF  ANY  COMMUNICATION  EFFECTED BY THE MAILS OR TELEGRAM THAT INDICATES
 THAT THE DEBT COLLECTION AGENCY IS IN THE DEBT  COLLECTION  BUSINESS  OR
 THAT  THE  COMMUNICATION  RELATES  TO THE COLLECTION OF A DEBT, PROVIDED
 THAT A DEBT COLLECTION AGENCY MAY USE ITS BUSINESS NAME OR THE NAME OF A
 DEPARTMENT WITHIN ITS ORGANIZATION AS LONG AS ANY  NAME  USED  DOES  NOT
 CONNOTE DEBT COLLECTION; AND
   (F) IF THE DEBT COLLECTION AGENCY KNOWS THE CONSUMER IS REPRESENTED BY
 AN  ATTORNEY  WITH REGARD TO THE SUBJECT DEBT AND IF THE DEBT COLLECTION
 AGENCY HAS KNOWLEDGE OF THE ATTORNEY'S NAME AND ADDRESS OR  CAN  READILY
 ASCERTAIN  SUCH  ATTORNEY'S  NAME  AND ADDRESS, NOT COMMUNICATE WITH ANY
 PERSON OTHER THAN THAT ATTORNEY FOR THE PURPOSE  OF  ACQUIRING  LOCATION
 INFORMATION  ABOUT THE CONSUMER UNLESS THE ATTORNEY FAILS TO PROVIDE THE
 CONSUMER'S LOCATION WITHIN A REASONABLE PERIOD OF TIME AFTER  A  REQUEST
 FOR THE CONSUMER'S LOCATION FROM THE DEBT COLLECTION AGENCY AND:
   (I)  INFORMS  THE DEBT COLLECTION AGENCY THAT HE OR SHE IS NOT AUTHOR-
 IZED TO ACCEPT PROCESS FOR THE CONSUMER, OR
   (II) FAILS TO RESPOND TO THE DEBT COLLECTION  AGENCY'S  INQUIRY  ABOUT
 THE ATTORNEY'S AUTHORITY TO ACCEPT PROCESS WITHIN A REASONABLE PERIOD OF
 TIME AFTER THE INQUIRY.
   2.  COMMUNICATION IN CONNECTION WITH DEBT COLLECTION.  (A) WITHOUT THE
 PRIOR WRITTEN CONSENT  OF  THE  CONSUMER  GIVEN  DIRECTLY  TO  THE  DEBT
 COLLECTION  AGENCY  AFTER THE INSTITUTION OF DEBT COLLECTION PROCEDURES,
 OR WITHOUT PERMISSION OF A  COURT  OF  COMPETENT  JURISDICTION,  A  DEBT

 S. 3125                             5
 
 COLLECTION  AGENCY SHALL NOT COMMUNICATE WITH THE CONSUMER IN CONNECTION
 WITH THE COLLECTION OF ANY DEBT:
   (I)  ORALLY, AT ANY TIME OTHER THAN BETWEEN THE HOURS OF 8:00 A.M. AND
 9:00 P.M. LOCAL TIME OR ANY UNUSUAL PLACE  KNOWN,  OR  WHICH  SHOULD  BE
 KNOWN, TO BE INCONVENIENT TO THE CONSUMER;
   (II)  AT  THE  CONSUMER'S PLACE OF EMPLOYMENT.  IF THE DEBT COLLECTION
 AGENCY HAS RECEIVED CONSENT FROM THE CONSUMER TO  COMMUNICATE  WITH  THE
 CONSUMER  AT  THE  CONSUMER'S  PLACE  OF EMPLOYMENT, THE DEBT COLLECTION
 AGENCY MAY COMMUNICATE WITH THE CONSUMER,  UNLESS  THE  DEBT  COLLECTION
 AGENCY  KNOWS  OR  HAS  REASON  TO  KNOW THAT THE CONSUMER'S EMPLOYER OR
 SUPERVISOR PROHIBITS THE CONSUMER FROM RECEIVING SUCH  A  COMMUNICATION;
 OR
   (III) WITH EXCESSIVE FREQUENCY. IN THE ABSENCE OF KNOWLEDGE OF CIRCUM-
 STANCES TO THE CONTRARY, A DEBT COLLECTION AGENCY SHALL ASSUME THAT MORE
 THAN  TWICE  DURING A SEVEN-CALENDAR-DAY PERIOD IS EXCESSIVELY FREQUENT.
 IN MAKING ITS CALCULATION, THE DEBT COLLECTION AGENCY NEED  NOT  INCLUDE
 ANY  COMMUNICATION  BETWEEN  A  CONSUMER  AND THE DEBT COLLECTION AGENCY
 WHICH IS IN RESPONSE TO  AN  ORAL  OR  WRITTEN  COMMUNICATION  FROM  THE
 CONSUMER,  OR  RETURNED  UNOPENED  MAIL,  OR A MESSAGE LEFT WITH A PARTY
 OTHER THAN ONE WHO IS RESPONSIBLE FOR THE DEBT AS LONG AS THE MESSAGE IS
 LIMITED TO A TELEPHONE NUMBER, THE NAME OF THE  DEBT  COLLECTION  AGENCY
 AND  A  REQUEST  THAT  ONE WHO IS RESPONSIBLE FOR THE DEBT TELEPHONE THE
 DEBT COLLECTION AGENCY; OR ANY COMMUNICATION WHICH IS REQUIRED BY LAW OR
 CHOSEN FROM AMONG ALTERNATIVES OF WHICH ONE IS REQUIRED BY LAW.
   (B) IN ORDER TO COLLECT A DEBT, AND EXCEPT AS PROVIDED BY  SUBDIVISION
 ONE  OF  THIS SECTION, WITHOUT THE PRIOR WRITTEN CONSENT OF THE CONSUMER
 GIVEN DIRECTLY TO THE DEBT COLLECTION AGENCY AFTER  THE  INSTITUTION  OF
 DEBT  COLLECTION PROCEDURES, OR WITHOUT THE PRIOR WRITTEN CONSENT OF THE
 CONSUMER'S ATTORNEY OR WITHOUT THE EXPRESS  PERMISSION  OF  A  COURT  OF
 COMPETENT  JURISDICTION, OR AS REASONABLY NECESSARY TO EFFECTUATE A POST
 JUDGMENT JUDICIAL REMEDY, A DEBT COLLECTION AGENCY MAY NOT  COMMUNICATE,
 IN  CONNECTION  WITH  THE  COLLECTION OF ANY DEBT, WITH ANY PERSON OTHER
 THAN THE CONSUMER, HIS OR HER ATTORNEY, A CONSUMER REPORTING  AGENCY  IF
 OTHERWISE  PERMITTED BY LAW, THE CREDITOR, THE ATTORNEY OF THE CREDITOR,
 OR ATTORNEY OF THE DEBT COLLECTION AGENCY.
   (C) AFTER INSTITUTION OF DEBT COLLECTION,  A  DEBT  COLLECTION  AGENCY
 SHALL  NOT  COMMUNICATE  WITH  A  CONSUMER WITH RESPECT TO A DEBT IF THE
 CONSUMER HAS NOTIFIED THE DEBT COLLECTION AGENCY  IN  WRITING  THAT  THE
 CONSUMER  REFUSES  TO PAY A DEBT OR WISHES THE DEBT COLLECTION AGENCY TO
 CEASE FURTHER COMMUNICATION WITH THE CONSUMER WITH RESPECT TO THAT DEBT,
 EXCEPT:
   (I) TO ADVISE THE CONSUMER THAT THE DEBT COLLECTION  AGENCY'S  FURTHER
 EFFORTS ARE BEING TERMINATED;
   (II) TO NOTIFY THE CONSUMER THAT THE DEBT COLLECTION AGENCY MAY INVOKE
 SPECIFIED  REMEDIES WHICH ARE ORDINARILY INVOKED BY SUCH DEBT COLLECTION
 AGENCY;
   (III)  WHERE  APPLICABLE,  TO  NOTIFY  THE  CONSUMER  THAT  THE   DEBT
 COLLECTION AGENCY INTENDS TO INVOKE A SPECIFIED REMEDY; OR
   (IV) TO RESPOND TO EACH SUBSEQUENT COMMUNICATION FROM THE CONSUMER.
   (D)  FOR  THE PURPOSE OF THIS SUBDIVISION THE TERM "CONSUMER" INCLUDES
 THE CONSUMER'S PARENT (IF THE CONSUMER IS A MINOR), GUARDIAN,  EXECUTOR,
 ADMINISTRATOR,  AND  SPOUSE  (UNLESS THE DEBT COLLECTION AGENCY KNOWS OR
 HAS REASON TO KNOW THAT THE CONSUMER IS LEGALLY  SEPARATED  FROM  OR  NO
 LONGER  LIVING  WITH  HIS OR HER SPOUSE), OR AN INDIVIDUAL AUTHORIZED BY
 THE CONSUMER TO MAKE PURCHASES AGAINST THE ACCOUNT WHICH IS THE  SUBJECT
 OF  THE  COLLECTION  EFFORTS.  A REQUEST THAT THE DEBT COLLECTION AGENCY

 S. 3125                             6
 
 CEASE FURTHER COMMUNICATION, PROVIDED FOR  UNDER  THIS  SUBDIVISION,  IF
 MADE BY THE CONSUMER'S SPOUSE OR AN INDIVIDUAL AUTHORIZED BY THE CONSUM-
 ER  TO  MAKE  PURCHASES  AGAINST  THE  ACCOUNT,  ONLY  AFFECTS  THE DEBT
 COLLECTION  AGENCY'S  ABILITY  TO  COMMUNICATE  FURTHER  WITH THE PERSON
 MAKING THE REQUEST.
   3. HARASSMENT OR ABUSE. A DEBT COLLECTION  AGENCY  SHALL  NOT  HARASS,
 OPPRESS OR ABUSE ANY PERSON IN CONNECTION WITH THE COLLECTION OF A DEBT.
 WITHOUT LIMITING THE GENERAL APPLICATION OF THE FOREGOING, THE FOLLOWING
 CONDUCT IS PROHIBITED:
   (A)  THE USE OR THREAT OF VIOLENCE OR OTHER CRIMINAL MEANS TO HARM THE
 PHYSICAL PERSON, REPUTATION, OR PROPERTY OF ANY PERSON;
   (B) THE USE OF OBSCENE OR PROFANE LANGUAGE  OR  LANGUAGE  THE  NATURAL
 CONSEQUENCE OF WHICH IS TO ABUSE THE RECIPIENT OF THE COMMUNICATION;
   (C)  THE  ADVERTISEMENT  FOR SALE OF ANY DEBT TO COERCE PAYMENT OF THE
 DEBT;
   (D) CAUSING A TELEPHONE TO RING OR ENGAGING ANY  PERSON  IN  TELEPHONE
 CONVERSATION  REPEATEDLY OR CONTINUOUSLY WITH INTENT TO ANNOY, ABUSE, OR
 HARASS ANY PERSON AT THE CALLED NUMBER;
   (E) THE PUBLICATION OF A LIST OF CONSUMERS WHO ALLEGEDLY REFUSE TO PAY
 DEBTS, EXCEPT TO  ANOTHER  EMPLOYEE  OF  THE  DEBT  COLLECTION  AGENCY'S
 EMPLOYER  OR  TO  A  CONSUMER REPORTING AGENCY OR TO PERSONS MEETING THE
 REQUIREMENTS OF 15 USC 1681A(F) OR 15 USC 1681B(3); OR
   (F) EXCEPT AS PROVIDED BY SUBDIVISION ONE OF THIS SECTION, THE  PLACE-
 MENT  OF  TELEPHONE  CALLS WITHOUT MEANINGFUL DISCLOSURE OF THE CALLER'S
 IDENTITY.
   4. FALSE OR MISLEADING REPRESENTATIONS. A DEBT COLLECTION AGENCY SHALL
 NOT MAKE ANY FALSE, DECEPTIVE, OR MISLEADING REPRESENTATION OR MEANS  IN
 CONNECTION WITH THE COLLECTION OF ANY DEBT. WITHOUT LIMITING THE GENERAL
 APPLICATION OF THE FOREGOING, THE FOLLOWING CONDUCT IS PROHIBITED:
   (A)  THE  FALSE REPRESENTATION OR IMPLICATION THAT THE DEBT COLLECTION
 AGENCY IS VOUCHED FOR, BONDED BY, OR AFFILIATED WITH THE  UNITED  STATES
 OR ANY STATE, INCLUDING THE USE OF ANY BADGE, UNIFORM OR FACSIMILE THER-
 EOF;
   (B) THE FALSE REPRESENTATION OF:
   (I) THE CHARACTER, AMOUNT, OR LEGAL STATUS OF ANY DEBT, OR
   (II)  ANY  SERVICES  RENDERED  OR  COMPENSATION  WHICH MAY BE LAWFULLY
 RECEIVED BY ANY DEBT COLLECTION AGENCY FOR THE COLLECTION OF A DEBT;
   (C) THE FALSE REPRESENTATION OR IMPLICATION THAT ANY INDIVIDUAL IS  AN
 ATTORNEY OR ANY COMMUNICATION IS FROM AN ATTORNEY;
   (D) THE REPRESENTATION OR IMPLICATION THAT NONPAYMENT OF ANY DEBT WILL
 RESULT  IN  THE  ARREST  OR  IMPRISONMENT  OF ANY PERSON OR THE SEIZURE,
 GARNISHMENT, ATTACHMENT, OR SALE OF ANY PROPERTY OR WAGES OF ANY  PERSON
 UNLESS  SUCH ACTION IS LAWFUL AND THE DEBT COLLECTION AGENCY OR CREDITOR
 INTENDS TO PURSUE SUCH ACTION;
   (E) THE THREAT TO TAKE ANY ACTION THAT CANNOT LEGALLY BE TAKEN OR THAT
 IS NOT INTENDED TO BE TAKEN;
   (F) THE FALSE REPRESENTATION OR IMPLICATION THAT A SALE, REFERRAL,  OR
 OTHER TRANSFER OF ANY INTEREST IN A DEBT SHALL CAUSE THE CONSUMER TO:
   (I) LOSE ANY CLAIM OR DEFENSE TO PAYMENT OF THE DEBT; OR
   (II) BECOME SUBJECT TO ANY PRACTICE PROHIBITED BY THIS ARTICLE;
   (G)  THE FALSE REPRESENTATION OR IMPLICATION MADE IN ORDER TO DISGRACE
 THE CONSUMER THAT THE CONSUMER COMMITTED ANY CRIME OR OTHER CONDUCT;
   (H) THE FALSE REPRESENTATION OR IMPLICATION THAT  ACCOUNTS  HAVE  BEEN
 TURNED OVER TO INNOCENT PURCHASERS FOR VALUE;

 S. 3125                             7
 
   (I)  COMMUNICATING  OR THREATENING TO COMMUNICATE TO ANY PERSON CREDIT
 INFORMATION WHICH IS KNOWN OR WHICH SHOULD BE KNOWN TO BE FALSE, INCLUD-
 ING THE FAILURE TO COMMUNICATE A DISPUTED DEBT'S STATUS AS DISPUTED;
   (J)  THE  FALSE REPRESENTATION OR IMPLICATION THAT DOCUMENTS ARE LEGAL
 PROCESS;
   (K) THE USE OF ANY FALSE REPRESENTATION OR DECEPTIVE MEANS TO  COLLECT
 OR  ATTEMPT  TO  COLLECT  ANY DEBT OR TO OBTAIN INFORMATION CONCERNING A
 CONSUMER;
   (L) THE USE OR DISTRIBUTION OF ANY WRITTEN COMMUNICATION  WHICH  SIMU-
 LATES  OR IS FALSELY REPRESENTED TO BE A DOCUMENT AUTHORIZED, ISSUED, OR
 APPROVED BY ANY COURT, OFFICIAL OR AGENCY  OF  THE  UNITED  STATES,  THE
 STATE  OR  ANY  POLITICAL  SUBDIVISION THEREOF, OR WHICH CREATES A FALSE
 IMPRESSION AS TO ITS SOURCE, AUTHORIZATION, OR APPROVAL;
   (M) THE FALSE REPRESENTATION OR IMPLICATION  THAT  DOCUMENTS  ARE  NOT
 LEGAL PROCESS FORMS AND DO NOT REQUIRE ACTION BY THE CONSUMER;
   (N)  THE  FALSE  REPRESENTATION  OR IMPLICATION THAT A DEBT COLLECTION
 AGENCY OPERATES OR IS EMPLOYED BY A CONSUMER REPORTING AGENCY AS DEFINED
 BY 15 USC 1681A(F);
   (O) EXCEPT AS OTHERWISE PROVIDED UNDER SUBDIVISION ONE OF THIS SECTION
 AND EXCEPT FOR ANY COMMUNICATION WHICH IS REQUIRED BY LAW OR CHOSEN FROM
 AMONG ALTERNATIVES OF WHICH ONE IS REQUIRED BY LAW, OR ANY FORMAL PLEAD-
 ING IN CONNECTION WITH ANY LEGAL ACTION, THE FAILURE TO DISCLOSE CLEARLY
 IN ALL COMMUNICATIONS MADE TO COLLECT A DEBT OR  TO  OBTAIN  INFORMATION
 ABOUT  A  CONSUMER,  THAT  THE  DEBT  COLLECTION AGENCY IS ATTEMPTING TO
 COLLECT A DEBT AND THAT ANY INFORMATION OBTAINED WILL BE USED  FOR  THAT
 PURPOSE; OR
   (P)  THE USE OF ANY BUSINESS, COMPANY, OR ORGANIZATION NAME OTHER THAN
 THE TRUE NAME OF THE DEBT  COLLECTION  AGENCY'S  BUSINESS,  COMPANY,  OR
 ORGANIZATION.
   5. UNFAIR PRACTICES. A DEBT COLLECTION AGENCY SHALL NOT USE ANY UNFAIR
 OR UNCONSCIONABLE MEANS TO COLLECT OR ATTEMPT TO COLLECT A DEBT. WITHOUT
 LIMITATION OF THE FOREGOING, SUCH PROHIBITED CONDUCT INCLUDES:
   (A) THE COLLECTION OF ANY AMOUNT (INCLUDING ANY INTEREST, FEE, CHARGE,
 OR EXPENSE INCIDENTAL TO THE PRINCIPAL OBLIGATION) UNLESS SUCH AMOUNT IS
 EXPRESSLY AUTHORIZED BY THE AGREEMENT CREATING THE DEBT;
   (B)  THE  SOLICITATION OR USE BY A DEBT COLLECTION AGENCY OF ANY POST-
 DATED CHECK OR OTHER POSTDATED PAYMENT INSTRUMENT  FOR  THE  PURPOSE  OF
 THREATENING OR INSTITUTING CRIMINAL PROSECUTION;
   (C)  CAUSING  CHARGES  TO  BE MADE TO ANY PERSON FOR COMMUNICATIONS BY
 MISREPRESENTATION OF TRUE PURPOSE OF  THE  COMMUNICATION.  SUCH  CHARGES
 INCLUDE COLLECT TELEPHONE CALLS, TELEGRAM AND WIRELESS TELEPHONE FEES;
   (D)  TAKING  OR  THREATENING  TO TAKE ANY NONJUDICIAL ACTION TO EFFECT
 DISPOSSESSION OR DISABLEMENT OF PROPERTY IF:
   (I) THERE IS NO PRESENT RIGHT TO POSSESSION OF THE PROPERTY CLAIMED AS
 COLLATERAL;
   (II) THERE IS NO PRESENT INTENTION TO TAKE POSSESSION OF THE PROPERTY;
 OR
   (III) THE PROPERTY IS EXEMPT BY LAW FROM SUCH DISPOSSESSION  OR  DISA-
 BLEMENT;
   (E) COMMUNICATING WITH A CONSUMER REGARDING A DEBT BY POST CARD;
   (F) USING ANY LANGUAGE OR SYMBOL, OTHER THAN THE DEBT COLLECTION AGEN-
 CY'S  ADDRESS, ON ANY ENVELOPE WHEN COMMUNICATING WITH A CONSUMER BY USE
 OF THE MAILS OR BY TELEGRAM, OR ELECTRONIC  COMMUNICATION  COPIED  TO  A
 THIRD  PARTY  EXCEPT  THAT A DEBT COLLECTION AGENCY MAY USE ITS BUSINESS
 NAME OR THE NAME OF A DEPARTMENT WITHIN ITS ORGANIZATION AS LONG AS  ANY

 S. 3125                             8
 
 NAME  USED  DOES  NOT INDICATE THAT HE OR SHE IS IN THE BUSINESS OF DEBT
 COLLECTION;
   (G) COMMUNICATING WITH A CONSUMER REGARDING A DEBT WITHOUT IDENTIFYING
 HIMSELF  OR  HERSELF AND HIS OR HER EMPLOYER OR COMMUNICATING IN WRITING
 WITH A CONSUMER REGARDING A DEBT WITHOUT IDENTIFYING HIMSELF OR  HERSELF
 BY NAME AND ADDRESS; OR
   (H)  IF  ANY CONSUMER OWES MULTIPLE DEBTS AND MAKES ANY SINGLE PAYMENT
 TO ANY DEBT COLLECTION AGENCY WITH RESPECT  TO  SUCH  DEBTS,  SUCH  DEBT
 COLLECTION  AGENCY  MAY  NOT  APPLY  SUCH  PAYMENT  TO ANY DEBT WHICH IS
 DISPUTED BY THE CONSUMER AND, WHERE APPLICABLE, SHALL APPLY SUCH PAYMENT
 IN ACCORDANCE WITH THE CONSUMER'S DIRECTIONS.
   6. DECEPTIVE FORMS. IT IS UNLAWFUL FOR ANY PERSON TO  DESIGN,  COMPILE
 AND  FURNISH ANY FORM KNOWING THAT SUCH FORM WOULD BE USED TO CREATE THE
 FALSE BELIEF IN A CONSUMER THAT A PERSON OTHER THAN THE CREDITOR OF SUCH
 CONSUMER IS PARTICIPATING IN THE COLLECTION  OF  OR  IN  AN  ATTEMPT  TO
 COLLECT  A DEBT SUCH CONSUMER ALLEGEDLY OWES SUCH CREDITOR, WHEN IN FACT
 SUCH PERSON IS NOT SO PARTICIPATING.
   7. VALIDATION OF DEBTS.  THE FOLLOWING VALIDATION PROCEDURES SHALL  BE
 FOLLOWED BY DEBT COLLECTION AGENCIES:
   (A)  WITHIN  FIVE DAYS AFTER THE INITIAL COMMUNICATION WITH A CONSUMER
 IN CONNECTION WITH THE COLLECTION OF ANY DEBT, A DEBT COLLECTION  AGENCY
 SHALL,  UNLESS  THE  FOLLOWING  INFORMATION  IS CONTAINED IN THE INITIAL
 COMMUNICATION OR THE CONSUMER HAS PAID THE DEBT,  SEND  THE  CONSUMER  A
 CLEAR WRITTEN NOTICE TITLED "DEBTOR'S RIGHTS", WHICH SHALL CONTAIN:
   (I)  THE  DELINEATED  AMOUNTS  OF  THE ORIGINAL DEBT, ANY INTEREST AND
 PENALTIES ACCRUED, AND THE TOTAL DEBT DUE AT THE TIME OF THE NOTICE,
   (II) THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE  CREDITOR  TO  WHOM
 THE  DEBT  IS  OWED, OR SUCH CREDITOR'S AGENT, AND THE NAME, ADDRESS AND
 TELEPHONE NUMBER OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM THE CURRENT
 DEBT COLLECTION AGENCY,
   (III) THE DATE THE DEBT WAS DEEMED IN DEFAULT,
   (IV) A STATEMENT THAT UNLESS THE CONSUMER, WITHIN  THIRTY  DAYS  AFTER
 RECEIPT OF THE NOTICE, DISPUTES THE VALIDITY OF THE DEBT, OR ANY PORTION
 THEREOF,  THE  DEBT WILL BE ASSUMED VALID BY THE DEBT COLLECTION AGENCY,
 AND
   (V) A STATEMENT THAT, IF THE CONSUMER  NOTIFIES  THE  DEBT  COLLECTION
 AGENCY IN WRITING WITHIN THE THIRTY-DAY PERIOD AT THE ADDRESS DESIGNATED
 BY  THE  DEBT  COLLECTION  AGENCY  IN  THE NOTICE, THAT THE DEBT, OR ANY
 PORTION THEREOF IS DISPUTED, THE  DEBT  COLLECTION  AGENCY  WILL  OBTAIN
 VERIFICATION OF THE DEBT AGAINST THE CONSUMER AND A COPY OF SUCH VERIFI-
 CATION WILL BE MAILED TO THE CONSUMER BY THE DEBT COLLECTION AGENCY.
   (B)  IF  THE  CONSUMER  NOTIFIES THE DEBT COLLECTION AGENCY IN WRITING
 WITHIN THE THIRTY-DAY PERIOD DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVI-
 SION THAT THE DEBT, OR ANY PORTION THEREOF IS DISPUTED, OR IF NOTICE  OF
 SUCH  DISPUTE  IS GIVEN TO THE DEBT COLLECTION AGENCY IN ACCORDANCE WITH
 THIS ARTICLE, THE DEBT COLLECTION AGENCY SHALL NOT  ATTEMPT  TO  COLLECT
 THE AMOUNT IN DISPUTE UNTIL THE DEBT COLLECTION AGENCY OBTAINS AND MAILS
 TO THE CONSUMER VERIFICATION OF THE DEBT.  A DEBT COLLECTION AGENCY THAT
 RECEIVES  SUCH  WRITTEN NOTICE SHALL PROVIDE A COPY THEREOF TO THE OWNER
 OF THE DEBT.
   (C) THE DEBT COLLECTION AGENCY SHALL MAINTAIN FOR ONE  YEAR  FROM  THE
 DATE  THE  DEBTOR'S  RIGHTS NOTICE WAS MAILED, DOCUMENTATION OF THE DATE
 SUCH NOTICE WAS MAILED, THE DATE THE RESPONSE, IF ANY, WAS RECEIVED  AND
 ANY ACTION TAKEN FOLLOWING SUCH RESPONSE.

 S. 3125                             9
 
   (D)  THE FAILURE OF A CONSUMER TO DISPUTE THE VALIDITY OF A DEBT UNDER
 THIS SECTION SHALL NOT BE CONSTRUED BY ANY  COURT  AS  AN  ADMISSION  OF
 LIABILITY BY THE CONSUMER.
   (E)  THE  SENDING  OR  DELIVERY  OF  ANY FORM OR NOTICE WHICH DOES NOT
 RELATE TO DEBT COLLECTION AND IS  EXPRESSLY  REQUIRED  BY  THE  INTERNAL
 REVENUE  CODE  OF  1986,  TITLE  V OF THE GRAMM-LEACH-BLILEY ACT, OR ANY
 PROVISION OF FEDERAL OR STATE LAW RELATING TO NOTICE  OF  DATA  SECURITY
 BREACH OR PRIVACY, OR ANY REGULATION PRESCRIBED UNDER ANY SUCH PROVISION
 OF  LAW,  SHALL NOT BE TREATED AS AN INITIAL COMMUNICATION IN CONNECTION
 WITH DEBT COLLECTION FOR PURPOSES OF THIS SECTION.
   (F) IF THE CONSUMER NOTIFIES THE DEBT  COLLECTION  AGENCY  IN  WRITING
 AFTER  THE THIRTY-DAY PERIOD DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVI-
 SION THAT THE DEBT,  OR  ANY  PORTION  THEREOF  IS  DISPUTED,  THE  DEBT
 COLLECTION  AGENCY  SHALL OBTAIN VERIFICATION OF THE DEBT, AND MAIL SUCH
 VERIFICATION TO THE CONSUMER. THE DEBT COLLECTION AGENCY MAY CONTINUE TO
 ATTEMPT TO COLLECT THE AMOUNT IN DISPUTE.
   § 603-A. SELLING OR TRANSFERRING OF DEBTS. EVERY DEBT PURCHASER OR HIS
 OR HER AGENT SHALL SEND A NOTICE TO THE LAST KNOWN ADDRESS OF THE DEBTOR
 ADVISING THE DEBTOR WHEN THE DEBT PURCHASER SELLS OR TRANSFERS THE DEBT,
 PRIOR TO OR CONTEMPORANEOUS WITH THE SALE OF THE DEBT. A  COPY  OF  SUCH
 NOTICE  SHALL BE TRANSMITTED TO THE PERSON, FIRM, ORGANIZATION OR ENTITY
 TO WHOM THE DEBT PURCHASER OR HIS OR HER AGENT HAS  AGREED  TO  SELL  OR
 TRANSFER  THE DEBT ALONG WITH A COPY OF ANY NOTICE IN REGARD TO THE DEBT
 PROVIDED TO THE DEBT PURCHASER  IN  ACCORDANCE  WITH  PARAGRAPH  (B)  OF
 SUBDIVISION  SEVEN  OF SECTION SIX HUNDRED THREE OF THIS ARTICLE. A DEBT
 PURCHASER SHALL PROVIDE A COPY OF SUCH NOTICE  TO  ANY  DEBT  COLLECTION
 AGENCY HIRED TO COLLECT SUCH DEBT.
   §  603-B.  PRIVATE  RIGHT OF ACTION. 1.   NOTWITHSTANDING ANY RIGHT OF
 ACTION GRANTED TO ANY GOVERNMENTAL BODY PURSUANT TO  THIS  ARTICLE,  ANY
 PERSON  WHO  HAS BEEN INJURED BY REASON OF VIOLATION OF THIS ARTICLE MAY
 BRING AN ACTION AGAINST ANY PERSON OR PERSONS, TO ENJOIN  SUCH  UNLAWFUL
 ACT,  AND  TO RECOVER AN AMOUNT EQUAL TO (A) ANY ACTUAL DAMAGE SUSTAINED
 BY SUCH PERSON AS A RESULT OF SUCH  FAILURE,  AND  (B)  SUCH  ADDITIONAL
 DAMAGES  AS  THE  COURT  MAY  ALLOW  BUT NOT EXCEEDING TWO THOUSAND FIVE
 HUNDRED DOLLARS, AND REASONABLE ATTORNEYS' FEES.
   2. INTENT. A DEBT COLLECTION AGENCY MAY NOT  BE  HELD  LIABLE  IN  ANY
 ACTION BROUGHT UNDER THIS ARTICLE, ABSENT ACTUAL DAMAGE TO THE CONSUMER,
 IF  THE DEBT COLLECTION AGENCY SHOWS BY A PREPONDERANCE OF EVIDENCE THAT
 THE VIOLATION WAS NOT INTENTIONAL AND RESULTED FROM A  BONA  FIDE  ERROR
 NOTWITHSTANDING  THE  MAINTENANCE  OF  PROCEDURES  REASONABLY ADOPTED TO
 AVOID ANY SUCH ERROR.
   3. LIMITATIONS. AN ACTION TO ENFORCE ANY  LIABILITY  CREATED  BY  THIS
 ARTICLE  MAY  BE  BROUGHT  IN ANY OTHER COURT OF COMPETENT JURISDICTION,
 WITHIN TWO YEARS FROM THE DATE ON WHICH THE VIOLATION OCCURS.
   § [602.] 603-C. Violations  and  penalties.  1.  Except  as  otherwise
 provided  by  law,  any person who [shall violate] VIOLATES the terms of
 this article [shall be] IS  guilty  of  a  misdemeanor,  and  each  such
 violation shall be deemed a separate offense.
   2.  The  attorney  general  or the district attorney of any county may
 bring an action in the name of the people of the state  to  restrain  or
 prevent  any  violation  of  this article or any continuance of any such
 violation.
   3. Any aggrieved person or entity served with more than fifty informa-
 tion subpoenas per month by a [principal] creditor or his or  her  agent
 shall  also have a cause of action to challenge compliance with subdivi-
 sion [ten] ELEVEN of section six hundred one of this article and/or  the

 S. 3125                            10
 
 certification  requirements of rule fifty-two hundred twenty-four of the
 civil practice law and rules. In such  action,  a  successful  plaintiff
 shall  be  awarded ten dollars for each information subpoena served upon
 such  plaintiff  where  it  is shown that the required certification for
 such information subpoena  was  not  made  pursuant  to  rule  fifty-two
 hundred  twenty-four  of  the  civil  practice  law  and rules, that the
 required record for such information subpoena was not maintained  pursu-
 ant to subdivision [ten] ELEVEN of section six hundred one of this arti-
 cle,  or  that  the  specific  grounds for the certification required to
 accompany such information subpoena pursuant to rule  fifty-two  hundred
 twenty-four  of  the civil practice law and rules were not reasonable. A
 successful plaintiff may also be awarded court costs and attorney fees.
   § [603.] 603-D. Severability. If any provision of this article or  the
 application  thereof  to any person or circumstances is held invalid the
 invalidity thereof shall not affect other provisions or applications  of
 the  article  which can be given effect without the invalid provision or
 application, and to this [and] END the provisions of  this  article  are
 severable.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become  a  law,  provided,  however,
 that  section 602, subdivision 7 of section 603 and section 603-a of the
 general business law, as added by this act, shall apply  only  to  debts
 incurred on or after the effective date of such sections.