What's happening
This bill requires credit card issuers to give 90 days' notice before expiring reward points and bans point expiration except in cases of fraud or misuse.
Why it matters
Protects consumers from sudden loss of rewards. by mandating a 90-day grace period to use or redeem points after notification of any changes, cancellations, or closures to a credit card account or rewards program. This helps cardholders plan and avoid losing accumulated value unexpectedly.
Eliminates most point expiration policies,. making it unlawful for issuers to have agreements that allow points to expire, providing more long-term value and predictability for consumers who save up points for larger rewards.
Limits exceptions strictly to fraud or misuse,. ensuring that only in cases where the cardholder engages in fraudulent activity or abuses the rewards program can the issuer deny the grace period or expire points, preventing arbitrary forfeiture.
Prevents issuers from bypassing these protections. by making any agreement clause that waives or limits these consumer rights automatically void, giving consumers strong legal footing and reducing the risk of unfair contract terms.
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Who cares
Headline styles
Protect Credit Card Points
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 9588a
- Amend and recommit to consumer affairs and protection
- Referred to consumer affairs and 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.
Protect Credit Card Points
In Assembly Committee · Consumer Affairs And Protection · Sponsor Shelley Mayer
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9588--A
IN ASSEMBLY
January 27, 2020
Introduced by M. of A. DenDEKKER -- read once and referred to the Committee on Consumer Affairs and Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the general business law, in relation to establishing a set grace period for the use of credit card reward points
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 520-e to read as follows:
§ 520-e. Grace period for use of credit card reward points. 1. As used in this section, the following terms shall have the following meanings:
(a) "credit card points" or "points" shall mean denominated units that can be accumulated in an account in connection with a credit card reward, loyalty, or other incentive program, often referred to as points or for certain travel-related rewards as miles, which are redeemable, fungible, or otherwise exchangeable, in whole or in part, for rewards;
(b) "rewards" shall mean goods, services, cash, merchant-specific gift cards, travel benefits, or one or more other things of value; and
(c) "rewards program" shall mean any agreement between a holder and an issuer regarding points related to an account.
2. If any credit card account or rewards program is modified, cancelled, closed or terminated, the holder must receive notice from the issuer of such cancellation, closure, termination or modification as soon as possible, and in any event within fifteen days of such cancellation, closure, termination or modification. Beginning with the date on which notice is sent, the holder shall have ninety days to redeem, exchange, or otherwise use any credit card points that the holder accumulated at the time of such modification, cancellation, closure, or termination as permitted under the terms of the agreement or agreements between the holder and the issuer which is servicing the applicable credit card account or related rewards program, subject to the availability of rewards.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14416-05-0
A. 9588--A 2
3. It shall be unlawful for any agreement between an issuer and a holder, or any rewards program, to provide for the expiration of credit card points.
4. The provisions of subdivision two of this section shall not apply in the case of fraud by the holder with respect to the credit card account or any related rewards program, or misuse by the holder of the credit card account or any related rewards program.
5. Any agreement entered into by a holder that waives, limits or disclaims the rights set forth in this section shall be void as contrary to public policy.
§ 2. This act shall take effect one year 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.