N.Y. General Business Law § 604-a: Prohibited practices

§ 604-a. Prohibited practices. 1. Upon receipt from a debtor of the

following, a principal creditor shall cease collection activities until

completion of the review provided in subdivision five of this section:

(a) a copy of a valid police report filed by the debtor alleging that

the debtor is the victim of an identity theft crime, including, but not

limited to, a violation of section 190.78, 190.79, 190.80, 190.81,

190.82 or 190.83 of the penal law, for the specific debt being collected

by the principal creditor; or

(b) a copy of a completed and signed federal trade commission identity

theft victim's report filed by the debtor alleging that the debtor is

the victim of identity theft; and

(c) the debtor's written statement that the debtor claims to be the

victim of identity theft with respect to the specific debt being

collected by the principal creditor.

2. The written statement described in paragraph (c) of subdivision one

of this section shall consist of either of the following:

(a) a signed federal trade commission ID theft victim's affidavit; or

(b) a written statement that certifies that the representations are

true, correct, and contain no material omissions of fact to the best

knowledge and belief of the person submitting the certification. A

person submitting such certification who declares as true any material

matter pursuant to this subdivision that he or she knows to be false is

guilty of a misdemeanor. Such statement shall contain or be accompanied

by, the following, to the extent that such items are relevant to the

debtor's allegation of identity theft with respect to the debt in

question:

(i) a statement that the debtor is a victim of identity theft;

(ii) a copy of the debtor's driver's license or identification card,

as issued by the state;

(iii) any other identification document that supports the statement of

identity theft;

(iv) specific facts supporting the claim of identity theft, if

available;

(v) any explanation showing that the debtor did not incur the debt;

(vi) any available correspondence disputing the debt after transaction

information has been provided to the debtor;

(vii) documentation of the residence of the debtor at the time of the

alleged debt. This may include copies of bills and statements, such as

utility bills, tax statements, or other statements from businesses sent

to the debtor, showing that the debtor lived at another residence at the

time the debt was incurred;

(viii) a telephone number for contacting the debtor concerning any

additional information or questions, or direction that further

communications to the debtor be in writing only, with the mailing

address specified in the statement;

(ix) to the extent the debtor has information concerning who may have

incurred the debt, the identification of any person whom the debtor

believes is responsible;

(x) an express statement that the debtor did not authorize the use of

the debtor's name or personal information for incurring the debt;

(xi) an express statement that the debtor was coerced to authorize the

use of the debtor's name or personal information for incurring the debt;

or

(xii) criminal or family court documents that support the statement of

identity theft.

3. The certification required pursuant to subdivision two of this

section shall be sufficient if it is in substantially the following

form:

"I certify the representations made are true, correct, and contain no

material omissions of fact.

_______________________ ________________________"

(Date and Place) (Signature)

4. If a debtor notifies a principal creditor orally that he or she is

a victim of identity theft, the principal creditor shall notify the

debtor, orally or in writing, that the debtor's claim must be in

writing. If a debtor notifies a principal creditor in writing that he or

she is a victim of identity theft, but omits information required

pursuant to subdivision one of this section and the principal creditor

does not cease collection activities, the principal creditor shall

provide written notice to the debtor of the additional information that

is required.

5. Upon receipt of the complete statement and information described in

subdivision one of this section, the principal creditor shall review and

consider all of the information provided by the debtor and other

information relevant to the review. The principal creditor may

recommence debt collection activities only upon making a good faith

determination based on all of the information provided by the debtor and

other information available to the principal creditor in its file or

from the creditor that the information does not establish that the

debtor is not responsible for the specific debt in question. The

principal creditor's determination shall be made in a manner consistent

with the provisions of 15 U.S.C.1692f(1). The debt collector shall

notify the debtor in writing of that determination and the basis for

that determination before proceeding with any further collection

activities.

6. No inference or presumption that the debt is valid or invalid, or

that the debtor is liable or not liable for the debt, shall arise if the

principal creditor decides after the review described in subdivision

five of this section to cease or recommence the debt collection

activities. The exercise or non-exercise of rights under this section is

not a waiver of any other right or defense of the debtor or debt

collector.

7. A principal creditor who ceases collection activities under this

section and does not recommence those collection activities, shall

within five business days of the cessation of collection activities, do

the following:

(a) if the principal creditor has furnished adverse information to a

consumer credit reporting agency, notify the agency to delete that

information; and

(b) notify the creditor that debt collection activities have been

terminated based upon the debtor's claim of identity theft.