What's happening
This bill prohibits mailing credit card applications or preapproved offers to individuals under 21, with certain exceptions and penalties for violations.
Why it matters
Targets youth financial vulnerability. By restricting unsolicited credit card offers to people under 21, the bill aims to reduce the risk of young adults taking on debt before they have the financial experience or stability to manage it responsibly.
Limits aggressive marketing by credit issuers. The legislation directly curtails a common marketing tactic used by credit card companies that can lead to high rates of early indebtedness among young people, especially college students.
Provides exceptions for informed choice. The bill allows credit card offers to be sent if a young adult specifically requests one or if it is a replacement for an existing card, respecting the autonomy of those who actively seek credit.
Creates enforceable penalties. With fines of up to $1,000 per violation, the bill puts real financial consequences in place for companies that disregard these protections, encouraging compliance and potentially deterring predatory practices.
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Who cares
Headline styles
Ban Credit Card Mail to Teens
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
2 Multi-sponsors
History
- Referred to consumer affairs and protection
- Referred to consumer affairs and protection
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3437
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
Introduced by M. of A. DINOWITZ, GALEF -- Multi-Sponsored by -- M. of A. GIGLIO, GLICK -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting mailing of credit card applications to persons under twenty-one years of age
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph and subdivision 9 of section 520 of the general business law, the opening paragraph as added by chapter 200 of the laws of 1987 and subdivision 9 as added by chapter 485 of the laws of 1996, are amended and three new subdivisions 10, 11 and 12 are added to read as follows:
[Any] Except as provided in subdivision ten of this section, any application form or preapproved written solicitation to enter into a credit card agreement for personal, family, or household purposes which is mailed to an individual residing in this state on or after January first, nineteen hundred eighty-eight, by or on behalf of [a] an issuer, whether or not the issuer is located in this state, other than an application form or solicitation included in a magazine, newspaper, or other publication distributed by someone other than the issuer, and, any application primarily for a credit card to be used for personal, family or household purposes which is distributed or made available in this state to a resident of this state on or after January first, nineteen hundred eighty-eight in an office or other place of business owned or operated by the issuer, shall contain the following disclosures in chart form and shall put chart headings in bold face type of at least ten point in size and material inside the chart of at least eight point type in size. Such chart shall use substantially the same format and terminology shown below. In completing the chart with the information
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01187-01-9
A. 3437 2
required for each category, the guidelines hereinafter contained in the corresponding subdivisions numbered one through four shall be utilized:
_________________________________________________________________________ | | | | |Cash Advance | | | Variable | | |Fee, Trans- | | Annual | Rate Index | Annualized | Grace | action Fee, | | Percentage | and | Membership | Period for |Late Fee, and| | Rate (1) | Spread (1a) | Fee (2) |Purchases (3)| Over-the- | | | | | |Limit Fees(4)| | | | | | | _________________________________________________________________________ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | _________________________________________________________________________
(9) [Any] Except as provided in subdivision ten of this section, any application form or preapproved written solicitation to enter into a retail installment credit agreement in which the retail seller or financing agency may take or retain a purchase money security interest, as set forth in paragraph (c) of subdivision twelve of section four hundred thirteen of the personal property law, which is mailed or otherwise made available to an individual residing in this state on or after the effective date of this subdivision, by or on behalf of an issuer, whether or not the issuer is located in this state, other than an application form or solicitation included in a magazine, newspaper, or other publication distributed by someone other than the issuer, shall contain a clear and conspicuous written notice or disclosure to the buyer that the retail seller or financing agency has or may retain a security interest in merchandise covered under paragraph (c) of subdivision twelve of section four hundred thirteen of the personal property law until the full payment price of said merchandise is paid. Further provided, however, in all instances, said written notice must be provided to any buyer prior to the first transaction made under any such retail installment credit agreement in which a security interest has been or may be taken or retained.
(10) Except as provided in subdivision twelve of this section, it shall be unlawful for any financial institution, retail merchant or other person to mail or otherwise deliver any credit card application, preapproved written solicitation or credit card in this state to any person under twenty-one years of age.
(11) Upon conviction of a violation of this section, a fine of no more than one thousand dollars per occurrence shall be imposed.
(12) This section shall not apply to any credit card application, preapproved written solicitation or credit card when mailed or otherwise delivered either:
(a) in response to a request or application for a credit card; or
(b) as a replacement for a credit card previously issued to the person to whom the credit card is shipped or mailed.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.