NY State Senate Bill 2021-S4428

Senate Bill S4428

2021-2022 Legislative Session

Provides that any charges assessed by a credit card company for late payment shall not exceed five percent of the unpaid balance of any bill or twenty dollars

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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to consumer protection
Feb 04, 2021	referred to consumer protection

2021-S4428 (ACTIVE) - Details

See Assembly Version of this Bill:: A600
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §518-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A487
2011-2012: A1009
2013-2014: S5419, A1369
2015-2016: S2377, A1572
2017-2018: S2293, A156
2019-2020: S4266, A397
2023-2024: S5222, A4590

2021-S4428 (ACTIVE) - Summary

Provides that any charges assessed by a credit card company for late payment shall not exceed five percent of the unpaid balance of any bill, including any interest thereon, or twenty dollars, whichever amount is less.

2021-S4428 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4428

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the general business law, in relation to credit card
late charges

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation provides that any charges assessed by a credit card
company for late payment will not exceed 5% of the unpaid balance of any
bill or twenty dollars, whichever is less.

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill adds a new section 518-b to the general business law to limit
late payment of credit card charges not to exceed five percent of unpaid
balance or twenty dollars.

JUSTIFICATION:

This legislation is introduced in response to an increasing reliance the
bank industry has placed on the use of charges of this nature to supple-
ment revenue. In some cases, late fees can amount to as much as a 350%
increase in an overall balance. This practice is predatory in the sense
that it further restricts payment options for certain individuals,
setting into motion a cycle of continuous debt to the benefit of the
industry and the detriment of the customer.

 
PRIOR LEGISLATIVE HISTORY:

2019-20: S.4266 - Referred to Consumer Protection

2017-18: S.2293/A.156 - Referred to Consumer Affairs

2015-2016: S.2377/ A.1572 - Referred to Consumer Affairs and Protection

2013-2014: S.5419/A.1369 - Referred to Consumer Affairs and Protection

2011-2012: A.1009 Referred to Banks

2009-2010: A.487 Referred to Banks

2007-2008: A.7715 Referred to Banks

2005-2006: A.5639 Referred to Consumer Affairs and Protection

2003-2004: A.205 Referred to Consumer Affairs and Protection

2001-2002: Referred to Consumer Affairs and Protection

2000: Referred to Consumer Affairs - and Protection

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the 90th day after it shall have become
law.

2021-S4428 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4428
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2021
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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  credit  card
   late charges
 
   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
 518-b to read as follows:
   § 518-B. CREDIT CARD LATE CHARGES. ANY CHARGES ASSESSED  BY  A  CREDIT
 CARD  COMPANY  FOR  LATE  PAYMENT  SHALL  NOT EXCEED FIVE PERCENT OF THE
 UNPAID BALANCE OF ANY BILL, INCLUDING ANY INTEREST  THEREON,  OR  TWENTY
 DOLLARS, WHICHEVER AMOUNT IS LESS.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01498-01-1

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