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Memo

BILL NUMBER:S1906

TITLE OF BILL:

An act to amend the general business law, in relation to requiring due dates on periodic statements

SUMMARY:

This bill would amend the General Business Law by adding a new section 520-d to provide that every statement (showing money is owed to the issuer of the credit card upon which finance charges will accrue) shall contain a due date by which the bill must be paid, and the payment required to avoid new or additional finance charges.

JUSTIFICATION:

Many credit card statements do not contain specific due dates, which can lead individuals to accidentally fail to pay their bill on time and incur additional interest fees or penalties. Statements also may not reflect the amount that could be paid in order to avoid incurring any new or additional finance charges. Requiring statements to contain the due dates, would make consumers more aware of deadlines and hence, assist in facilitating the timely payment of their credit card bills.

FISCAL IMPLICATION:

None.

EFFECTIVE DATE:

This act shall take effect on the first of November next succeeding the date on which it shall have become a law.

Text

STATE OF NEW YORK
________________________________________________________________________

1906

2011-2012 Regular Sessions

IN SENATE

January 14, 2011
___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to  requiring  due
  dates on periodic statements

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
520-d to read as follows:
  S 520-D. CREDIT CARD PERIODIC STATEMENT. EVERY PERIODIC STATEMENT SENT
BY AN ISSUER TO A CARD HOLDER WHICH REFLECTS A BALANCE IN FAVOR  OF  THE
ISSUER  UPON  WHICH  FINANCE CHARGES WILL ACCRUE SHALL CONTAIN (I) A DUE
DATE CLEARLY AND CONSPICUOUSLY DISCLOSED ON THE  FACE  OF  THE  PERIODIC
STATEMENT BY WHICH DATE PAYMENT OF THE BALANCE OR ANY PORTION THEREOF IS
DUE,  AND (II) THE PAYMENT REQUIRED TO AVOID INCURRING NEW OR ADDITIONAL
FINANCE CHARGES.
  S 2. This act shall take effect on the first of November next succeed-
ing the date on which it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07163-01-1