Bill Text: NY S03232 | 2017-2018 | 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 9-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO BANKS [S03232 Detail]

Download: New_York-2017-S03232-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3232
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 20, 2017
                                       ___________
        Introduced  by  Sens. GIANARIS, ADDABBO, AVELLA, KENNEDY, KRUEGER, MONT-
          GOMERY, PARKER, STAVISKY, STEWART-COUSINS -- read  twice  and  ordered
          printed, and when printed to be committed 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07224-01-7
        S. 3232                             2
     1  for  an ordinary consumer to read and comprehend the written warning and
     2  shall be in a type that contrasts with the background against which  the
     3  written  warning  appears;  and  (b) in oral communications, the warning
     4  shall  be  delivered  in a volume and cadence sufficient for an ordinary
     5  consumer to hear and comprehend. If any communication is presented sole-
     6  ly through oral, written or visual means,  the  warning  shall  be  made
     7  through the same means.
     8    3.  The  warning  required by this section shall not apply to an elec-
     9  tronic funds transfer in which funds are  not  transferred  directly  to
    10  another  person  and  are not available for immediate use, nor shall any
    11  warning be required in an electronic funds transfer  made  with  a  gift
    12  certificate  as  defined  in  section  three hundred ninety-six-i of the
    13  general business law.
    14    4. A violation of the provisions of this section shall  be  punishable
    15  by  a  civil  penalty of not more than two hundred fifty dollars for the
    16  first violation and five hundred dollars for each subsequent violation.
    17    § 2. This act shall take effect on the one hundred eightieth day after
    18  it shall have become a law.