S6276-2011 Actions

• May 8, 2012: PRINT NUMBER 6276B
• May 8, 2012: AMEND AND RECOMMIT TO RULES
• Apr 17, 2012: PRINT NUMBER 6276A
• Apr 17, 2012: AMEND AND RECOMMIT TO RULES
• Mar 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Mar 8, 2012: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
• Jan 19, 2012: REFERRED TO BANKS

S6276-2011 Memo

BILL NUMBER:S6276

TITLE OF BILL:
An act
to amend the banking law, in relation to requiring transmitters of money
to provide a certain warning to consumers

PURPOSE OR GENERAL IDEA OF BILL:
This bill would require a transmitter of money to provide a warning
about fraud to consumers.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this act would amend the banking law by adding a new
section, requiring a person engaged in the business of receiving
money for transmission or transmitting money to clearly and
prominently warn the consumers about fraud prior to completing the
transfer.

Section 2 makes this act effective on the one hundred eightieth day
after it shall have become a law.

JUSTIFICATION:
Consumer fraud hurts everyone regardless of age. The elderly, however,
are especially vulnerable to scams that call for the transferring of
money.
People receive calls or emails informing them that they won the
lottery, that they have been offered a great deal, or that they can
apply for a credit card if they simply transfer funds to an
unspecified address. People have lost hundreds of thousands of
dollars when they electronically transfer funds to individuals they
do not know. This bill would require a financial institution to alert
their customers to the dangers of consumer fraud. It would help them
make better decisions before things go terribly wrong.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

S6276-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         6276
 I N  SENATE
 January 19, 2012
 
 Introduced  by Sen. GIANARIS -- 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:

 

Section 1. The banking law is amended by adding a new section 652-c to
 read as follows:

 

S 652-C. REQUIRED WARNING. 1.   A PERSON ENGAGED IN  THE  BUSINESS  OF
 RECEIVING  MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC
 TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
 TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER  PERSON,  BUSI
 NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
 THE  TRANSMISSION  PRIOR  TO  COMPLETING  SUCH  TRANSMISSION OF FUNDS AS
 FOLLOWS:

 "WARNING: PLEASE DO NOT FALL VICTIM TO CONSUMER FRAUD. ARE YOU SENDING
 MONEY TO CLAIM LOTTERY WINNINGS? ARE YOU SENDING MONEY BECAUSE YOU  WERE
 GUARANTEED  A  CREDIT CARD OR LOAN? ARE YOU RESPONDING TO AN INTERNET OR
 PHONE OFFER THAT YOU ARE NOT SURE IS HONEST? ARE YOU  SENDING  MONEY  TO
 SOMEONE  YOU  DO  NOT  KNOW  OR WHOSE IDENTITY YOU CANNOT VERIFY? IF SO,
 PLEASE ASK THE SALES CLERK OR REPRESENTATIVE TO STOP YOUR TRANSFER RIGHT
 AWAY."
 2. FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY"  MEANS:

 (I) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN
 ELECTRONIC  MEDIUM  (SUCH  AS VIDEO AND INTERACTIVE MEDIA INCLUDING, BUT
 NOT LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL)  THE
 WARNING  SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE THE
 TRANSMISSION OF FUNDS, SHALL BE IN A TYPE SIZE  SUFFICIENTLY  NOTICEABLE
 FOR  AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING AND
 SHALL BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH  THE
 WRITTEN  WARNING  APPEARS;  AND (II) IN ORAL COMMUNICATIONS, THE WARNING
 SHALL BE DELIVERED IN A VOLUME AND CADENCE SUFFICIENT  FOR  AN  ORDINARY
 CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD13850-01-2
 
       S. 6276                             2
 LY  THROUGH  ORAL,  WRITTEN  OR  VISUAL MEANS, THE WARNING SHALL BE MADE
 THROUGH THE SAME MEANS.
 3.  A  VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL BE PUNISHABLE
 BY A CIVIL PENALTY OF NOT  MORE  THAN  FIVE  HUNDRED  DOLLARS  FOR  EACH
 VIOLATION.
 

S 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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