New York S 2040: Requires transmitters of money to provide a certain warning to consumers

Bill Text

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S02040 Summary:

BILL NOS02040 

&nbsp

SAME ASSAME AS A00390-A

&nbsp

SPONSORGIANARIS

&nbsp

COSPNSRADDABBO, HINCHEY, KRUEGER, LIU, MAY, PARKER, SERRANO, STAVISKY, STEWART-COUSINS, WEBB

&nbsp

MLTSPNSR

&nbsp

Add §652-c, Bank L

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Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

Go to top S02040 Actions:

BILL NOS02040 

&nbsp

01/15/2025REFERRED TO BANKS

02/04/20251ST REPORT CAL.285

02/05/20252ND REPORT CAL.

02/10/2025ADVANCED TO THIRD READING 

03/10/2025PASSED SENATE

03/10/2025DELIVERED TO ASSEMBLY

03/10/2025referred to banks

01/07/2026died in assembly

01/07/2026returned to senate

01/07/2026REFERRED TO BANKS

01/28/20261ST REPORT CAL.187

01/29/20262ND REPORT CAL.

02/03/2026ADVANCED TO THIRD READING 

02/05/2026PASSED SENATE

02/05/2026DELIVERED TO ASSEMBLY

02/05/2026referred to banks

Go to topS02040 Committee&nbspVotes:

Go to topS02040 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS02040 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2040

 2025-2026 Regular Sessions

 IN SENATE

 January 15, 2025
 ___________

 Introduced by Sens. GIANARIS, ADDABBO, HINCHEY, KRUEGER, LIU, MAY, PARK-
 ER, SERRANO, STAVISKY, STEWART-COUSINS -- read twice and ordered
 printed, and when printed to be committed 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 clearly and prominently warn the person requesting
 8 the transmission prior to completing such transmission of funds. Such
 9 warning shall include, but not be limited to, the following information:
 10 (a) a title in bold, capital letters saying "Warning: do not fall
 11 victim to consumer fraud.";
 12 (b) questions or information that alert a consumer about the dangers
 13 of sending funds for lottery winnings, credit card guarantees or loans,
 14 internet or phone offers, to persons unknown to the consumer or persons
 15 whose identity the consumer cannot verify and any other fraud alert;
 16 (c) information about how to ask questions of the sales clerk or
 17 representative; and
 18 (d) information about how to stop a transfer.
 19 2. For the purposes of this section, "clearly and prominently" means:
 20 (a) in written communications, including print and those made through an
 21 electronic medium (such as video and interactive media including, but
 22 not limited to, the internet, online services, and electronic mail) the
 23 warning shall appear on the same form as the form used to authorize the
 24 transmission of funds, or if no written form is used, via a sign in a

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01505-02-5

 S. 2040 2

 1 location reasonably designed to provide such notice, shall be in a type
 2 size sufficiently noticeable for an ordinary consumer to read and
 3 comprehend the written warning and shall be in a type that contrasts
 4 with the background against which the written warning appears; and (b)
 5 in oral communications, the warning shall be delivered in a volume and
 6 cadence sufficient for an ordinary consumer to hear and comprehend. If
 7 any communication is presented solely through oral, written or visual
 8 means, the warning shall be made through the same means.
 9 3. The warning required by this section shall not apply to an elec-
 10 tronic funds transfer in which funds are not transferred directly to
 11 another person and are not available for immediate use, nor shall any
 12 warning be required in an electronic funds transfer made with a gift
 13 certificate as defined in section three hundred ninety-six-i of the