N.Y. General Business Law § 703: Notice of error and response

§ 703. Notice of error and response. If a creditor, having transmitted

to a consumer a statement of the consumer's account, receives from the

consumer at an address designated therefor by the creditor in accordance

with section seven hundred five of this article, within sixty days of

the mailing of said statement, a written notice, on a document other

than a document provided by the creditor to accompany payment, setting

forth sufficient information to enable the creditor to identify the

consumer and the account, the amount and transaction shown in the

statement which the consumer in good faith believes to be a billing

error, and the facts providing the basis for the consumer's belief that

the statement is in error; the creditor shall:

1. Not later than thirty days after receipt of the notice, mail a

written acknowledgment to the consumer; and

2. Not later than ninety days after receipt of the notice and prior to

taking any action to collect the amount believed by the consumer to be a

billing error, (a) make appropriate corrections in the account of the

consumer and mail to the consumer a written notice stating that the

amount believed to be in error has been corrected and will be shown on

the next statement mailed to the consumer or (b) send a written notice

to the consumer setting forth the reasons why the creditor believes the

account of the consumer was correctly shown in the statement; and

3. Not communicate unfavorable credit information concerning the

consumer to any person, including but not limited to credit bureaus or

credit reporting agencies, based upon the consumer's failure to pay the

amount believed by him to be a billing error, until the creditor has

complied with this section.