Law against ‘convenience checks’

Almost everyday when New Yorkers peruse a newspaper they can find an article about identity theft in one form or another, many of which involve credit card fraud.
Now, Senator George Onorato is sponsoring new legislation that would forbid credit card companies from mailing “convenience checks” to their customers without their prior knowledge or consent.
“Almost everyone who has a credit card has received unsolicited convenience checks in the mail that can be used to transfer balances from other cards or make purchases,” Onorato said. “However, some of these checks come with blank amounts or are pre-printed with the customer’s name and address, making them easy for identity thieves to steal and cash. This leaves consumers in a position where they need to prove that the check was fraudulently cashed, which can often constitute a real burden.”
Onorato’s new legislation would prohibit credit card companies from mailing unsolicited checks, drafts or other negotiable instruments to consumers without prior written authorization. In addition, it would impose a civil fine of up to $1,000 for a first violation, and up to $5,000 for subsequent violations.
Currently, the measure is under consideration by the Senate Standing Committee on Consumer Protection.
“While some credit card companies require that consumers call a specific number to verify their identity before activating the checks, that isn’t the case across the board,” Onorato said. “This can leave consumers vulnerable to identity theft and financial harm.”
Onorato is hopeful that this legislation will help Queens residents and all New York State residents protect themselves from falling victim to credit card fraud. A number of other states have already passed laws addressing this issue or are considering similar legislation.
“In the meantime, I urge my constituents to contact their credit card companies to inquire about their policies concerning convenience checks, and to speak up if they don’t want to receive them,” Onorato said. “Furthermore, those who do receive convenience checks and don’t plan to use them should shred or otherwise completely destroy them before they go out in the trash.”