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.
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