Relates to the sale of abandoned property location services and to restrictions on agreements to locate abandoned property

BILL NUMBER:S7690

Title of bill

An act to amend the general business law, in relation to the sale of abandoned property location services; and to amend the abandoned property law, in relation to restrictions on agreements to locate abandoned property

Purpose or general idea of bill

The purpose of this bill is to ensure that consumers are able to make informed decisions regarding the purchase of abandoned property locations services by requiring such services to notify consumers that property held by the State may be obtained directly from the Office of the State Comptroller free of charge.

Summary of specific provisions

This bill would amend the General Business Law to require any person or business entity offering abandoned property location services for a fee to include the following notice in all solicitations and agreements: "Abandoned funds held by the State can be obtained directly from the Office of the State Comptroller by the owner of such funds without paying a fee. These funds are held indefinitely by the Office of the State Comptroller. For more information, contact the Office of the State Comptroller at (current telephone number established by the Office for receiving inquires from consumers regarding unclaimed funds) or (current web address of the Office)."

This bill would also amend section 1416 of the Abandoned Property Law related to abandoned property location service agreements to:

> clarify that such section shall apply to any person, corporation, association, partnership or other entity which sells or offers to sell such services, with the exception of certain client agreements with attorneys or accountants; and

> provide that abandoned property location service agreements shall be in a form prescribed by the Comptroller and witnessed and acknowledged by a notary public.

Justification

According to the Better Business Bureau of Metro New York, several consumers have filed complaints regarding solicitations for abandoned property location services that make exaggerated claims, while others have complained about services making misleading claims. Some consumers informed the Bureau that they paid an upfront fee only to find that the State held less than three dollars of their money.

Rightful owners of unclaimed funds held by the State should be able to claim their funds without charge. In order to save New Yorkers' hard earned money, the Office of the State Comptroller encourages consumers to make direct inquires regarding unclaimed funds, as

opposed to using an abandoned property location service that charges a fee.

Section one of the bill is modeled on General Business Law sections 393-c and d, which require entities that offer to obtain documents provided by government agencies at no charge or for a small fee, namely labor postings and certified copies of property deeds, to disclose such fact to consumers.

Prior legislative history

New bill.

Fiscal implications for state and local governments

None to the State.

Effective date

This act shall take effect on the sixtieth day after it shall have became a law.