N.Y. General Business Law § 514: Defenses

§ 514. Defenses. 1. In any action for a cash advance or loan or for

the purchase or lease of property or services through the use of a

credit card or a debit card, it shall be a defense that such obligation

(a) arose out of the unauthorized use of a credit card or a debit card

which was not delivered to the holder; or

(b) arose subsequent to the giving of notice by the holder to the

issuer of the unauthorized use, loss or theft, of such credit card or

debit card; or

(c) is in excess of the limitation of liability for the unauthorized

use of a credit card provided in the act of congress entitled "Truth in

Lending Act" and the regulations thereunder, as such act and regulations

may from time to time be amended.

2. If any of the defenses set forth in subdivision one of this section

be established, the court shall order the issuer to pay the reasonable

attorney's fees incurred in the defense of the action if the court finds

(a) that the holder has cooperated with the issuer in determining the

facts and circumstances relating to such unauthorized use, loss or

theft, of the credit card or debit card; and

(b) that notwithstanding such cooperation with the issuer, the issuer

has brought the action without reasonable cause.