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A02282 Summary:

BILL NOA02282
 
SAME ASNo Same As
 
SPONSORStirpe
 
COSPNSRSayegh, Santabarbara, Taylor, Weprin, Burdick, Steck
 
MLTSPNSR
 
Add §652-c, Bank L
 
Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.
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A02282 Actions:

BILL NOA02282
 
01/25/2023referred to banks
01/03/2024referred to banks
02/27/2024reported referred to codes
03/05/2024reported
03/07/2024advanced to third reading cal.342
03/11/2024passed assembly
03/11/2024delivered to senate
03/11/2024REFERRED TO BANKS
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A02282 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2282
 
SPONSOR: Stirpe
  TITLE OF BILL: An act to amend the banking law, in relation to requiring transmitters of money to provide a certain warning to consumers   PURPOSE: This purpose of this bill is to combat money transfer consumer fraud.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 - Amends the warning language to provide a "clear, concise, and conspicuous" warning to consumers about potential fraud, adds addi- tional provisions requiring annual consumer fraud training for agents, monitor agent activity related to consumer fraud, and establish a toll- free number for consumers to call to report fraud or suspected fraud and provide information on how to stop a transfer. Section 2 - sets the effective date.   JUSTIFICATION: Consumer fraud via money transfer scams hurts everyone regardless of age. The elderly, however, are especially vulnerable to those scams. The methods of these scams vary, but include calls or emails informing individuals that they won the lottery, have been offered a great deal, or can apply for a credit card if they transfer funds to an unspecified address. Victims of these scams lose varying amounts, and in the worst cases have lost hundreds of thousands of dollars. Thankfully, there are methods to reduce money transfer scams including all the provisions provided in this bill. Therefore, this Legislature must pass this bill to actively combat money transfer fraud.   LEGISLATIVE HISTORY: 2021-22: A5864-C 2019-20: A.9728/S.9728 - Referred to Banks/Passed Senate 2015: A.2780 - Referred to Banks 2014: A.156-A - 3rd reading 2012: A.8928-B - Passed Assembly   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become a law.
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A02282 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2282
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 25, 2023
                                       ___________
 
        Introduced  by  M.  of  A. STIRPE, SAYEGH, SANTABARBARA -- read once and
          referred to the Committee on Banks
 
        AN ACT to amend the banking law, in relation to  requiring  transmitters
          of money to provide a certain warning to consumers
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The banking law is amended by adding a new section 652-c to
     2  read as follows:
     3    § 652-c. Required warning. 1.   A person engaged in  the  business  of
     4  receiving  money for transmission or transmitting money by wire or elec-
     5  tronic transfer which, at the request of an individual who in-person, by
     6  telephone or electronic means transmits funds to another  person,  busi-
     7  ness or entity, shall:
     8    (a)  provide  a clear, concise, and conspicuous consumer fraud warning
     9  prior to initiating the money transfer  transaction  and  on  all  funds
    10  transfer forms used by consumers to send money to an individual;
    11    (b)  provide  annual  consumer  fraud  prevention  training for agents
    12  involved with funds transfers;
    13    (c) monitor agent activity relating to consumer funds transfers; and
    14    (d) establish a toll-free number for consumers to call to report fraud
    15  or suspected fraud and provide information on how to stop a transfer.
    16    2. The warning required by this section shall not apply  to  an  elec-
    17  tronic  funds  transfer  in  which funds are not transferred directly to
    18  another person and are not available for immediate use.
    19    3. A violation of the provisions of this section shall  be  punishable
    20  by  a  civil  penalty of not more than two hundred fifty dollars for the
    21  first violation and five hundred dollars for each subsequent violation.
    22    § 2. This act shall take effect on the one hundred eightieth day after
    23  it shall have become a law.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00388-01-3
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