Bill Text: NY A09728 | 2019-2020 | General Assembly | Introduced

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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 1-0)

Status: (Introduced - Dead) 2020-02-06 - referred to banks [A09728 Detail]

Download: New_York-2019-A09728-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9728

                   IN ASSEMBLY

                                    February 6, 2020
                                       ___________

        Introduced by M. of A. STIRPE -- 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    §  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 include, but not be limited to, the following information:
    10    (a)  a  title  in  bold,  capital letters saying "Warning: do not fall
    11  victim to consumer fraud.";
    12    (b) questions or information that alert a consumer about  the  dangers
    13  of  sending funds for lottery winnings, credit card guarantees or loans,
    14  internet or phone offers, to persons unknown to the consumer or  persons
    15  whose identity the consumer cannot verify and any other fraud alert; and
    16    (c)  information  about  how  to  ask  questions of the sales clerk or
    17  representative; and
    18    (d) information about how to stop a transfer.
    19    2. For the purposes of this section, "clearly and prominently"  means:
    20  (a) in written communications, including print and those made through an
    21  electronic  medium  (such  as video and interactive media including, but
    22  not limited to, the internet, online services, and electronic mail)  the
    23  warning  shall appear on the same form as the form used to authorize the
    24  transmission of funds, shall be in a type size  sufficiently  noticeable
    25  for  an ordinary consumer to read and comprehend the written warning and
    26  shall be in a type that contrasts with the background against which  the
    27  written  warning  appears;  and  (b) in oral communications, the warning
    28  shall be delivered in a volume and cadence sufficient  for  an  ordinary

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03998-01-9
        A. 9728                             2

     1  consumer to hear and comprehend. If any communication is presented sole-
     2  ly  through  oral,  written  or  visual means, the warning shall be made
     3  through the same means.
     4    3.  The  warning  required by this section shall not apply to an elec-
     5  tronic funds transfer in which funds are  not  transferred  directly  to
     6  another  person  and  are not available for immediate use, nor shall any
     7  warning be required in an electronic funds transfer  made  with  a  gift
     8  certificate  as  defined  in  section  three hundred ninety-six-i of the
     9  general business law.
    10    4. A violation of the provisions of this section shall  be  punishable
    11  by  a  civil  penalty of not more than two hundred fifty dollars for the
    12  first violation and five hundred dollars for each subsequent violation.
    13    § 2. This act shall take effect on the one hundred eightieth day after
    14  it shall have become a law.