HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR

HOUSE BILL 523

54th legislature - STATE OF NEW MEXICO - first session, 2019

AN ACT

RELATING TO CONSUMER PROTECTION; DECLARING AS AN UNLAWFUL PRACTICE AUTOMATIC WITHDRAWALS MADE PURSUANT TO AUTOMATIC PAYMENT AGREEMENTS FROM CERTAIN CONSUMER ACCOUNTS WITHOUT PRIOR OR IMMEDIATE NOTICE OF THOSE WITHDRAWALS; PROVIDING A DEFINITION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Unfair Practices Act is enacted to read:

     "[NEW MATERIAL] AUTOMATIC PAYMENT AGREEMENTS--NOTICE REQUIRED.--

          A. It is an unlawful practice within the meaning of the Unfair Practices Act for a person that has an automatic payment agreement with a consumer to fail to notify the consumer of each withdrawal from the consumer's credit or debit account, or the consumer's account with a third party, prior to or immediately upon making that withdrawal.

          B. For purposes of this section, "automatic payment agreement" means an agreement between a creditor and a consumer that authorizes the creditor to periodically withdraw money from a credit card or a checking or savings account to pay a bill.

          C. The provisions of this section shall not apply to a federally insured depository institution or to an insurer as defined in Section 59A-1-8 NMSA 1978."

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