Prohibits an additional fee or rate to be charged when payment on an account is made by US mail or a customer opts for receiving paper billing statement.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9541A
SPONSOR: Pheffer (MS) TITLE OF BILL: An act to amend the general business law, in relation
to prohibiting an additional fee or rate to be charged in certain
circumstances
PURPOSE OR GENERAL IDEA OF BILL: This purpose of this bill is to
prohibit businesses from imposing an additional rate or fee on the
account of a consumer who chooses to receive paper billing statements or
pay by United States mail.
SUMMARY OF SPECIFIC PROVISIONS: This bill would prohibit any person,
partnership, corporation, association or other business entity from
charging a consumer an additional rate or fee or a differential in the
rate or fee associated with payment on an account when the consumer
chooses to pay by United States mail or receive a paper billing state-
ment.
The bill stipulates that its provisions shall not be construed to
prohibit a person, partnership, corporation, association or other busi-
ness entity from offering consumers a credit or other incentive to elect
a specific payment or billing option.
Violations would be deemed a deceptive act and practice subject to
enforcement under Article 22-A of the General Business Law.
JUSTIFICATION: In recent months, there have been instances of major
companies proposing to impose an additional fee on the accounts of
customers that choose to receive a paper bill or pay by United States
mail. Such paper billing and payment fees unfairly impact consumers that
do not have Internet access in their homes, as well as, those that are
uncomfortable using the Internet, including many senior citizens and
those concerned about personal privacy.
Paper billing and payment fees disproportionately affect low-income
consumers, who are less likely to have access to the Internet. Further-
more, such policies impose an additional burden on those customers who
choose to file their billing statements for later reference, as such
customers will be forced to bear the cost of printing electronic billing
statements on their home printer.
While the environmental benefits of electronic billing and payment are
clear, a better approach to reducing paper use in this area is avail-
able. Several major companies have successfully reduced paper usage by
offering customers an incentive to switch to electronic billing and
payment.
This legislation would expand upon the provisions of Section 702 of the
General Business Law, which prohibit creditors from charging customers
an additional rate or fee when the consumer chooses to pay by United
States mail:
PRIOR LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.
EFFECTIVE DATE: 180 days after it shall have become a law,
