Bill S771-2009

Prohibits credit card companies from accepting and processing an application that has been altered, torn and reconstructed or damaged

Prohibits credit card companies from accepting and processing an application that has been altered, torn and reconstructed or damaged.

Details

Actions

  • Jan 6, 2010: REFERRED TO CONSUMER PROTECTION
  • Jan 15, 2009: REFERRED TO CONSUMER PROTECTION

Memo

 BILL NUMBER:  S771

TITLE OF BILL : An act to amend the general business law, in relation to prohibiting credit card companies from accepting and processing an application that has been altered, torn and reconstructed or damaged

PURPOSE : To prohibit credit card companies from accepting and processing an altered, torn and reconstructed or damaged application.

SUMMARY OF PROVISIONS : Section 1: Section 520 of the general business law is amended by adding new subdivision 10 which provides that no credit card company shall accept and process an application that has been altered, torn and reconstructed or damaged. Section 2: Effective Date.

JUSTIFICATION : Identity theft is a serious problem in New York State. Nationally, identity theft costs businesses and financial institutions $33 Billion a year and Americans spent a total of 300 million hours resolving problems related to identity theft. Contrary to popular belief, ripping up credit card applications is not a good way to prevent people from stealing their identity using an damaged credit card application. Credit card companies are currently required by law to process any application it receives regardless of if it has been altered, torn and reconstructed or damaged. The current law make it easy for an identity thief to get a credit card in someone else's name. This legislation would rectify this situation by requiring credit card companies not to process any application that has been altered, torn and reconstructed or damaged.

LEGISLATIVE HISTORY : 2007-2008 - Consumer Protection

FISCAL IMPLICATIONS : None.

EFFECTIVE DATE : This act shall take effect immediately.

Text

STATE OF NEW YORK ________________________________________________________________________ 771 2009-2010 Regular Sessions IN SENATE January 15, 2009 ___________
Introduced by Sen. ALESI -- 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 prohibiting credit card companies from accepting and processing an application that has been altered, torn and reconstructed or damaged THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 520 of the general business law is amended by adding a new subdivision 10 to read as follows: (10) NO CREDIT CARD COMPANIES SHALL ACCEPT AND PROCESS AN APPLICATION THAT HAS BEEN ALTERED, TORN AND RECONSTRUCTED OR DAMAGED. S 2. This act shall take effect immediately.

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