Bill Text: NY A07899 | 2011-2012 | General Assembly | Introduced

New York Assembly Bill 7899 (Prior Session Legislation)

Introduced

Bill Title: Requires financial institutions to provide a consumer warning prior to completing a transfer of funds, and provides for a five hundred dollar civil penalty to be imposed for each violation.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Introduced - Dead) 2012-01-04 - referred to consumer affairs and protection [A07899 Detail]

Download: New_York-2011-A07899-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7899
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     May 20, 2011
                                      ___________
       Introduced  by M. of A. NOLAN -- read once and referred to the Committee
         on Consumer Affairs and Protection
       AN ACT to amend the general business law,  in  relation  to  a  consumer
         warning about transfer of funds
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The general business law is amended by adding a new section
    2  399-ff to read as follows:
    3    S 399-FF. CONSUMER WARNING ABOUT TRANSFER OF  FUNDS.  1.  A  FINANCIAL
    4  INSTITUTION AS DEFINED IN SECTION 5-1501 OF THE GENERAL OBLIGATIONS LAW,
    5  OR  ANY  OTHER  BUSINESS  ENGAGED  IN THE WIRE OR ELECTRONIC TRANSFER OF
    6  FUNDS WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON OR  BY  ELEC-
    7  TRONIC  MEANS  TRANSFERS  FUNDS  TO  ANOTHER PERSON, BUSINESS OR ENTITY,
    8  SHALL REQUIRE THE PERSON REQUESTING THE TRANSFER TO READ  AND  SIGN  THE
    9  FOLLOWING CONSUMER NOTICE PRIOR TO COMPLETING A TRANSFER OF FUNDS:
   10    "WARNING: PLEASE DO NOT FALL VICTIM TO CONSUMER FRAUD. ARE YOU SENDING
   11  MONEY  TO CLAIM LOTTERY WINNINGS? ARE YOU SENDING MONEY BECAUSE YOU WERE
   12  'GUARANTEED' A CREDIT CARD OR LOAN? ARE YOU RESPONDING TO AN INTERNET OR
   13  PHONE OFFER THAT YOU ARE NOT SURE IS HONEST? ARE YOU  SENDING  MONEY  TO
   14  SOMEONE  YOU  DO  NOT  KNOW  OR WHOSE IDENTITY YOU CANNOT VERIFY? IF SO,
   15  PLEASE ASK THE SALES CLERK OR REPRESENTATIVE TO STOP YOUR TRANSFER RIGHT
   16  AWAY."
   17    THE NOTICE SET OUT IN THIS SECTION SHALL APPEAR ON THE SAME FORM USING
   18  THE SAME FORMAT AS THE FORM BY WHICH THE PERSON REQUESTING THE  TRANSFER
   19  AUTHORIZES SUCH TRANSFER.
   20    2.  A  VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL BE PUNISHABLE
   21  BY A CIVIL PENALTY OF NOT  MORE  THAN  FIVE  HUNDRED  DOLLARS  FOR  EACH
   22  VIOLATION.
   23    S 2. This act shall take effect on the one hundred twentieth day after
   24  it shall have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11751-01-1