Prohibits the use of social media websites for the purpose of debt collection

BILL NUMBER:S3803

Title of bill

An act to amend the general business law, in relation to prohibiting the use of social media websites for the purposes of collecting debts

Purpose or general idea of bill

The purpose of this bill is to prevent debt collectors from using online contact information as a means to collect on a consumer debt. Summary of Specific Provisions:

Section 1 amends the General Business Law by adding a new subdivision 11 to section 601 that would prohibit principal creditors or their agents from using the Internet as a means to collect on a consumer claim.

Justification

The Internet has made it possible to interact with people in ways that were previously unimaginable: While the benefits of technology are readily apparent - communicating with loved ones, reconnecting with friends, and granting access to a wealth of knowledge and resources - there has also been ample opportunities and occasions of abuse.

Several news reports have revealed that debt collectors use the Internet, particularly social media websites, as a means to communicate with debtors and to try to collect on debts. This invasion of personal privacy should not be allowed in New York.

Prior legislative history

2013-14: A.5414B - Referred to Consumer Affairs and Protection

Fiscal implications for state and local governments

None to the State.

Effective date

This act shall take effect immediately.