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Sponsors
Senator · Senate District 40
1 Co-sponsor
History
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prohibits issuers of credit cards and debit cards from knowingly accepting or soliciting financial information of a cardholder from a third-party
In Assembly Committee · Consumer Affairs And Protection · Sponsor Jeffrey Dinowitz
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6280
Title of bill
An act to amend the general business law, in relation to prohibiting issuers from accepting personal financial information of holders from a third-party
Purpose
This bill would prohibit card issuers from knowingly accepting or soliciting personal financial information about a cardholder from a person other than the card holder.
Summary of provisions
This bill would add a new Section 518-b to the General Business Law, which would prohibit issuers of credit cards and debit cards from knowingly accepting or soliciting the personal information of a holder from a person other than the card holder. A violation of these provisions would be punishable by a civil penalty not to exceed two thousand dollars for each such violation.
Justification
Third-parties should not be permitted to give personal information about a credit or debit cardholder to the issuer of the card. The cardholder is ultimately responsible for the use of the card, and their credit history is effected by any use of or changes to the account Any errors in the information provided by a third-party might be recorded on a consumer credit report, where even providing a different street address can affect a consumer's credit history. Also, if a third-party were permitted to give the address of the cardholder to the issuer, they might be able to divert monthly statements to another address or raise the limit of the line of credit attached to the card. Likewise, in the case of a divorced spouse or when a child is a third-party user of their parent's card, such a user might be able to cause harm to the cardholder or the cardholder's credit by Riving inaccurate or misleading information to the issuer.
In recognition of the fact that the cardholder is ultimately responsible for the use of their card, this legislation would make them the sole source of personal information about themselves. At the seine time, this bill would not limit the transmittal of financial or transaction information by merchants or businesses, in recognition of the fact that the transmittal of these types of information is necessary for the use of credit and debit cards.
Legislative history
2011-2012- Consumer Protection Committee (S.5061) 2007-2008- Consumer Protection Committee (S.4308/A/6852) 2005-2006: Consumer Protection Committee (S.4687/A 9321)
Fiscal implications
None.
Effective date
On the first of September next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.