NY State Senate Bill 2025-S4022

Senate Bill S4022

2025-2026 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

Current 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 31, 2025	referred to consumer protection

2025-S4022 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §518-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5419
2015-2016: S2377
2017-2018: S2293
2019-2020: S4266
2021-2022: S4428
2023-2024: S5222

2025-S4022 (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.

2025-S4022 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4022

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:

Section 1: The general business law is amended by adding a new section
518-b.

Section 2: This act shall take effect on the ninetieth day after it
shall have become law.

 
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:

2023-24: S5222- Referred to Consumer Protection

2021-22: S4428 - Referred to Consumer Protection

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 ninetieth day after it shall have
become law.

2025-S4022 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4022
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2025
                                ___________
 
 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.
                                                            LBD07592-01-5

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