§ 707 — Penalties

§ 707. Penalties. Any creditor, having received a notice from a\nconsumer as provided in section seven hundred three of this act, who\nfails to comply with the requirements of that section:\n 1. If such an amount is not in fact a billing error, forfeits any\nrights to collect from the consumer any finance charge or other charge\nimposed by the creditor in connection with the amount so specified, from\nthe date of the mailing of such notice to the date the creditor complies\nwith section seven hundred three of this act; and\n 2. If such amount is in fact a billing error, is liable to the\nconsumer in an amount equal to the sum of:\n (a) the actual damages sustained by the consumer as a result of the\nfailure of the creditor to comply with such section;\n (b) twice the amount of the billing error shown in the statement of\nthe consumer's account except that liability under this paragraph shall\nnot be greater than four hundred dollars; and\n (c) in the case of any successful action to enforce the foregoing\nliability, the costs of the action together with a reasonable attorney's\nfee as determined by the court.\n 3. If such amount is in fact a billing error but the creditor shows by\na preponderance of evidence that the violation was not intentional and\nresulted from bona fide error made despite the maintenance of procedures\nreasonably adopted to avoid any such error, the creditor shall be liable\nto the consumer only to the extent of the actual damages sustained by\nthe consumer as a result of the failure of the creditor to comply with\nsuch section and the costs of any action brought to enforce collection\nof such erroneous bill together with a reasonable attorney's fee as\ndetermined by the court.\n 4. Whenever there shall be a violation of subdivision two of section\nseven hundred two of this article, an application may be made by the\nattorney general in the name of the people of the state of New York to a\ncourt or justice having jurisdiction by a special proceeding to issue an\ninjunction, and upon notice to the defendant of not less than five days,\nto enjoin or restrain the continuance of such violation; and if it shall\nappear to the satisfaction of the court or justice that the defendant\nhas, in fact, violated subdivision two of section seven hundred two of\nthis article, an injunction may be issued by such court or justice,\nenjoining and restraining any further violation, without requiring proof\nthat any person has, in fact, been injured or damaged thereby. In any\nsuch proceeding, the court may make allowances to the attorney general\nas provided in paragraph six of subdivision (a) of section eighty-three\nhundred three of the civil practice law and rules, and direct\nrestitution. Whenever the court shall determine that a violation of\nsubdivision two of section seven hundred two of this article has\noccurred, the court may impose a civil penalty of not more than two\nhundred fifty dollars for each such violation. In connection with any\nsuch proposed application, the attorney general is authorized to take\nproof and make a determination of the relevant facts and to issue\nsubpoenas in accordance with the civil practice law and rules.\n