Prohibits the unsolicited mailing of convenience checks to consumers without the express consent of the consumer.
STATE OF NEW YORK ________________________________________________________________________ 2995--A 2011-2012 Regular Sessions IN ASSEMBLY January 21, 2011 ___________Introduced by M. of A. MAISEL, M. MILLER, McDONOUGH, ROBERTS, STEVENSON, N. RIVERA, COLTON, JAFFEE, WEPRIN -- Multi-Sponsored by -- M. of A. CALHOUN, CROUCH, JACOBS, MARKEY, MONTESANO -- read once and referred to the Committee on Consumer Affairs and Protection -- recommitted to the Committee on Consumer Affairs and Protection in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law, in relation to prohibiting the unsolicited mailing of convenience checks to consumers 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. UNSOLICITED CONVENIENCE CHECKS. 1. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "CHECK" MEANS ANY NEGOTIABLE INSTRUMENT, AS DEFINED BY SECTION 3-104 OF THE UNIFORM COMMERCIAL CODE, THAT HAS IMPRINTED ON IT THE HOLD- ER'S NAME AND THE DEPOSITORY INSTITUTION'S NAME, LOCATION, AND ROUTING NUMBER. (B) "UNSOLICITED CHECK" MEANS ANY CHECK MAILED OR OTHERWISE DELIVERED TO A HOLDER BY AN ISSUER OR AGENT ACTING ON BEHALF OF AN ISSUER FOR THE PURPOSE OF DRAWING ON AN EXISTING ACCOUNT THAT IS AN EXTENSION OF CREDIT OR ACTIVATING AN ACCOUNT TO OBTAIN CREDIT OTHER THAN: (1) IN RESPONSE TO A REQUEST OR APPLICATION FOR A CHECK OR ACCOUNT; OR (2) AS A SUBSTITUTE FOR A CHECK OR ACCOUNT PREVIOUSLY ISSUED TO THE PERSON TO WHOM THE CHECK IS MAILED OR OTHERWISE DELIVERED. 2. NO HOLDER IN WHOSE NAME AN UNSOLICITED CHECK IS ISSUED SHALL BE LIABLE FOR ANY AMOUNT RESULTING FROM USE OF THAT CHECK OR ACCOUNT, UNLESS THE HOLDER HAS ACCEPTED THE CHECK OR ACCOUNT BY USING THE CHECK OR ACCOUNT. FAILURE TO DESTROY OR RETURN AN UNSOLICITED CHECK SHALL NOT CONSTITUTE ACCEPTANCE OF THE CHECK OR ACCOUNT.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06410-02-2 A. 2995--A 2
3. ANY AGREEMENT ENTERED INTO BY A HOLDER WHICH WAIVES, LIMITS OR DISCLAIMS THE RIGHTS SET FORTH IN THIS SECTION SHALL BE VOID AS CONTRARY TO PUBLIC POLICY. S 2. This act shall take effect immediately.