§ 604-A — Prohibited practices

New York § 604-A

• Jurisdiction: New York
• Law GBS: General Business
• Art. 29-HH: Debt Collection Procedures Related to Identity Theft

Text

§ 604-a. Prohibited practices. 1. Upon receipt from a debtor of the\nfollowing, a principal creditor shall cease collection activities until\ncompletion of the review provided in subdivision five of this section:\n (a) a copy of a valid police report filed by the debtor alleging that\nthe debtor is the victim of an identity theft crime, including, but not\nlimited to, a violation of section 190.78, 190.79, 190.80, 190.81,\n190.82 or 190.83 of the penal law, for the specific debt being collected\nby the principal creditor; or\n (b) a copy of a completed and signed federal trade commission identity\ntheft victim's report filed by the debtor alleging that the debtor is\nthe victim of identity theft; and\n (c) the debtor's written statement that the debtor claims to be the\nvictim of identity theft with respect to the specific debt being\ncollected by the principal creditor.\n 2. The written statement described in paragraph (c) of subdivision one\nof this section shall consist of either of the following:\n (a) a signed federal trade commission ID theft victim's affidavit; or\n (b) a written statement that certifies that the representations are\ntrue, correct, and contain no material omissions of fact to the best\nknowledge and belief of the person submitting the certification. A\nperson submitting such certification who declares as true any material\nmatter pursuant to this subdivision that he or she knows to be false is\nguilty of a misdemeanor. Such statement shall contain or be accompanied\nby, the following, to the extent that such items are relevant to the\ndebtor's allegation of identity theft with respect to the debt in\nquestion:\n (i) a statement that the debtor is a victim of identity theft;\n (ii) a copy of the debtor's driver's license or identification card,\nas issued by the state;\n (iii) any other identification document that supports the statement of\nidentity theft;\n (iv) specific facts supporting the claim of identity theft, if\navailable;\n (v) any explanation showing that the debtor did not incur the debt;\n (vi) any available correspondence disputing the debt after transaction\ninformation has been provided to the debtor;\n (vii) documentation of the residence of the debtor at the time of the\nalleged debt. This may include copies of bills and statements, such as\nutility bills, tax statements, or other statements from businesses sent\nto the debtor, showing that the debtor lived at another residence at the\ntime the debt was incurred;\n (viii) a telephone number for contacting the debtor concerning any\nadditional information or questions, or direction that further\ncommunications to the debtor be in writing only, with the mailing\naddress specified in the statement;\n (ix) to the extent the debtor has information concerning who may have\nincurred the debt, the identification of any person whom the debtor\nbelieves is responsible;\n (x) an express statement that the debtor did not authorize the use of\nthe debtor's name or personal information for incurring the debt;\n (xi) an express statement that the debtor was coerced to authorize the\nuse of the debtor's name or personal information for incurring the debt;\nor\n (xii) criminal or family court documents that support the statement of\nidentity theft.\n 3. The certification required pursuant to subdivision two of this\nsection shall be sufficient if it is in substantially the following\nform:\n "I certify the representations made are true, correct, and contain no\nmaterial omissions of fact.\n_______________________ ________________________"\n (Date and Place) (Signature)\n 4. If a debtor notifies a principal creditor orally that he or she is\na victim of identity theft, the principal creditor shall notify the\ndebtor, orally or in writing, that the debtor's claim must be in\nwriting. If a debtor notifies a principal creditor in writing that he or\nshe is a victim of identity theft, but omits information required\npursuant to subdivision one of this section and the principal creditor\ndoes not cease collection activities, the principal creditor shall\nprovide written notice to the debtor of the additional information that\nis required.\n 5. Upon receipt of the complete statement and information described in\nsubdivision one of this section, the principal creditor shall review and\nconsider all of the information provided by the debtor and other\ninformation relevant to the review. The principal creditor may\nrecommence debt collection activities only upon making a good faith\ndetermination based on all of the information provided by the debtor and\nother information available to the principal creditor in its file or\nfrom the creditor that the information does not establish that the\ndebtor is not responsible for the specific debt in question. The\nprincipal creditor's determination shall be made in a manner consistent\nwith the provisions of 15 U.S.C.1692f(1). The debt collector shall\nnotify the debtor in writing of that determination and the basis for\nthat determination before proceeding with any further collection\nactivities.\n 6. No inference or presumption that the debt is valid or invalid, or\nthat the debtor is liable or not liable for the debt, shall arise if the\nprincipal creditor decides after the review described in subdivision\nfive of this section to cease or recommence the debt collection\nactivities. The exercise or non-exercise of rights under this section is\nnot a waiver of any other right or defense of the debtor or debt\ncollector.\n 7. A principal creditor who ceases collection activities under this\nsection and does not recommence those collection activities, shall\nwithin five business days of the cessation of collection activities, do\nthe following:\n (a) if the principal creditor has furnished adverse information to a\nconsumer credit reporting agency, notify the agency to delete that\ninformation; and\n (b) notify the creditor that debt collection activities have been\nterminated based upon the debtor's claim of identity theft.\n