Relates to creating a forty-eight hour grace period from due date of credit card bill.
TITLE OF BILL: An act to amend the general business law, in relation to creating a forty-eight hour grace period from the due date of a credit card bill
PURPOSE OR GENERAL IDEA OF BILL: To allow for a grace period of forty-eight hours from the due date of a credit card bill payment so to give the payment ample time to arrive via mail or electronic transfer.
SUMMARY OF SPECIFIC PROVISIONS: The general business law is amended to add a new section 515-a: allows for a forty-eight hour grace period for which the issuer of a credit card cannot impose or modify any charges charges related to the annual percentage rate (APR), fees for issuance of availability, minimum finance charges, transaction charges, cash advance fees, renewal fees, over-the-limit fees, or any other fee or rate related to use of a credit card for forty-eight hours.
A violation of section 515-a is deemed a deceptive act and a civil penalty of up to one thousand dollars can be imposed. Each subsequent violation can impose a penalty of up to two-thousand dollars.
JUSTIFICATION: Credit card bills are usually paid by mail or electronic deposit. Because of the processing involved when a payment is received by the credit card issuer and the time it takes for mail to arrive, a bill arriving on time may not be processed before the due date. When this happens the credit card issuer charges a retributive late fee and raises special interest rates on the customer, when the issuer is at fault. The forty-eight hour grace period protects the consumer from late fees and rate changes when the consumer is not at fault.
PRIOR LEGISLATIVE HISTORY: This legislation was previously introducred.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: The first of January next succeeding the date on which it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 1215 2011-2012 Regular Sessions IN SENATE January 6, 2011 ___________Introduced by Sen. STAVISKY -- 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 creating a forty-eight hour grace period from the due date of a credit card bill 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 515-a to read as follows: S 515-A. GRACE PERIOD FOR FEES AND CHARGES. 1. ISSUERS OF CREDIT CARDS SHALL NOT IMPOSE OR MODIFY ANY CHARGES RELATED TO THE ANNUAL PERCENTAGE RATE, FEES FOR ISSUANCE OF AVAILABILITY, MINIMUM FINANCE CHARGES, TRANS- ACTION CHARGES, CASH ADVANCE FEES, RENEWAL FEES, OVER-THE-LIMIT FEES, OR ANY OTHER FEE OR RATE RELATED TO USE OF A CREDIT CARD FOR A PERIOD OF FORTY-EIGHT HOURS FROM THE DUE DATE OF A CREDIT CARD BILL FOR ALL NEW OR RENEWED CREDIT CARD ACCOUNTS CREATED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION. 2. (A) EVERY VIOLATION OF THIS SECTION SHALL BE DEEMED A DECEPTIVE ACT AND PRACTICE SUBJECT TO ENFORCEMENT UNDER ARTICLE TWENTY-TWO-A OF THIS CHAPTER. IN EVERY CASE WHERE THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS SECTION HAS OCCURRED, IT MAY IMPOSE A CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR SUCH VIOLATION, AND MAY IMPOSE A CIVIL PENALTY OF NOT MORE THAN TWO THOUSAND DOLLARS FOR EACH SUBSEQUENT VIOLATION. (B) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO RESTRICT ANY RIGHT WHICH ANY PERSON MAY HAVE UNDER ANY OTHER STATUTE OR THE COMMON LAW. S 2. This act shall take effect on the first of January 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. LBD05077-01-1