Bill Text: NY A00156 | 2013-2014 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Introduced - Dead) 2014-02-27 - advanced to third reading cal.463 [A00156 Detail]

Download: New_York-2013-A00156-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          156
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by M. of A. NOLAN, JACOBS, JAFFEE, MILLER, CASTRO, DINOWITZ,
         MILLMAN, WEPRIN, O'DONNELL -- Multi-Sponsored by --  M.  of  A.  COOK,
         CRESPO,  GABRYSZAK,  GLICK,  ORTIZ, PERRY -- read once and referred to
         the Committee on Banks
       AN ACT to amend the banking law, in relation to  requiring  transmitters
         of money to provide a certain warning to consumers
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The banking law is amended by adding a new section 652-c to
    2  read as follows:
    3    S 652-C. REQUIRED WARNING. 1.   A PERSON ENGAGED IN  THE  BUSINESS  OF
    4  RECEIVING  MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC-
    5  TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
    6  TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER  PERSON,  BUSI-
    7  NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
    8  THE  TRANSMISSION  PRIOR  TO COMPLETING SUCH TRANSMISSION OF FUNDS. SUCH
    9  WARNING SHALL CONTAIN AT THE MINIMUM THE FOLLOWING STATEMENTS:
   10    (A) "WARNING: DO NOT FALL VICTIM TO CONSUMER FRAUD."
   11    (B) "ARE YOU SENDING MONEY TO CLAIM LOTTERY WINNINGS?"
   12    (C) "ARE YOU SENDING MONEY BECAUSE YOU WERE GUARANTEED A  CREDIT  CARD
   13  OR LOAN?"
   14    (D) "ARE YOU RESPONDING TO AN INTERNET OR PHONE OFFER THAT YOU ARE NOT
   15  SURE IS HONEST?"
   16    (E) "ARE YOU SENDING MONEY TO SOMEONE YOU DO NOT KNOW OR WHOSE IDENTI-
   17  TY YOU CANNOT VERIFY?"
   18    (F) "ASK THE SALES CLERK OR REPRESENTATIVE TO STOP YOUR TRANSFER RIGHT
   19  AWAY  IF  YOU  HAVE ANY QUESTIONS OR ARE UNSURE ABOUT THE NATURE OF YOUR
   20  TRANSACTION. IT COULD BE FRAUD."
   21    2. FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY"  MEANS:
   22  (A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00134-01-3
       A. 156                              2
    1  ELECTRONIC  MEDIUM  (SUCH  AS VIDEO AND INTERACTIVE MEDIA INCLUDING, BUT
    2  NOT LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL)  THE
    3  WARNING  SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE THE
    4  TRANSMISSION  OF  FUNDS, SHALL BE IN A TYPE SIZE SUFFICIENTLY NOTICEABLE
    5  FOR AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING  AND
    6  SHALL  BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH THE
    7  WRITTEN WARNING APPEARS; AND (B) IN  ORAL  COMMUNICATIONS,  THE  WARNING
    8  SHALL  BE  DELIVERED  IN A VOLUME AND CADENCE SUFFICIENT FOR AN ORDINARY
    9  CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE-
   10  LY THROUGH ORAL, WRITTEN OR VISUAL MEANS,  THE  WARNING  SHALL  BE  MADE
   11  THROUGH THE SAME MEANS.
   12    3.  THE  WARNING  REQUIRED BY THIS SECTION SHALL NOT APPLY TO AN ELEC-
   13  TRONIC FUNDS TRANSFER IN WHICH FUNDS ARE  NOT  TRANSFERRED  DIRECTLY  TO
   14  ANOTHER  PERSON  AND  ARE NOT AVAILABLE FOR IMMEDIATE USE, NOR SHALL ANY
   15  WARNING BE REQUIRED IN AN ELECTRONIC FUNDS TRANSFER  MADE  WITH  A  GIFT
   16  CERTIFICATE  AS  DEFINED  IN  SECTION  THREE HUNDRED NINETY-SIX-I OF THE
   17  GENERAL BUSINESS LAW.
   18    4. A VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL  BE  PUNISHABLE
   19  BY  A  CIVIL  PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR THE
   20  FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
   21    S 2. This act shall take effect on the one hundred eightieth day after
   22  it shall have become a law.