What's happening
This bill prohibits debt collectors from using social media websites to collect consumer debts in New York.
Why it matters
Protects consumer privacy and mental well-being. by preventing debt collectors from contacting or publicly shaming debtors via social media platforms, which are often used for personal and social interactions rather than business communications.
Closes a modern loophole. in existing debt collection laws by specifically defining and prohibiting the use of "social networking websites" (such as Facebook, Twitter, Instagram, etc.) for debt collection, reflecting the evolving ways collectors might reach consumers in the digital age.
Reduces the risk of harassment and reputational harm. since debt collection attempts on social media can expose a person's financial difficulties to friends, family, or employers, potentially causing embarrassment or employment issues.
Clarifies the boundaries of lawful communication. by explicitly excluding email from the definition of social networking websites, allowing traditional electronic methods for debt collection to continue while drawing a clear line at social platforms.
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Who cares
Headline styles
Ban Social Media Debt Collection
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.590
- Referred to consumer protection
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3273
2017-2018 Regular Sessions
IN SENATE
January 20, 2017
Introduced by Sen. PARKER -- 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 the use of social media websites for the purposes of collecting debts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 10 of section 601 of the general business law, as added by chapter 342 of the laws of 2011, is amended and a new subdivision 11 is added to read as follows:
10. If such principal creditor or agent sends more than fifty information subpoenas per month, fail to keep complete records concerning all information subpoenas sent by such principal creditor or agent. Such records shall be maintained for five years. Contemporaneous records shall be kept that set forth with specificity the grounds for such principal creditor or agent's reasonable belief, which must be certified and accompany each information subpoena pursuant to rule fifty-two hundred twenty-four of the civil practice law and rules, that the party receiving the subpoena has in its possession information about the debtor that will assist the creditor in collecting his or her judgement. In addition to any other penalty that [my] may be imposed, failure to maintain records in accordance with this subdivision shall subject such principal creditor or agent to a civil penalty of not more than fifty dollars per subpoena, up to a maximum of five thousand dollars per violation, in an action brought by the attorney general[.]; or
11. Use a social networking website as a means to collect on a consumer claim from a debtor. For purposes of this subdivision, "social networking website" means an internet-based service that allows individuals to: (a) construct a public or semi-public profile within a bounded system, created by the service; (b) create a list of other users with whom they share a connection within the system; and (c) view and navigate their list of connections and those made by others within the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07411-01-7
S. 3273 2
system. Provided, however, that "social networking website" shall not include electronic mail (e-mail).
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
2015-16: S.3803 - Referred to Consumer Protection 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.