New York cardholders would get 30 days before account cuts

In New York, a credit card could not simply vanish out from under a consumer with no warning. Assembly Member Chantel Jackson’s bill would require issuers to give cardholders written notice at least 30 days before closing, canceling or terminating an account, giving people time to shift automatic payments and prepare for the loss of credit.

That notice could arrive by email, text message or written letter. The bill is built around notice, not a ban on account closures.

The warning window

The proposal adds a new Section 520-f to the General Business Law. Under it, an issuer would have to send notice before the effective date of the closure, cancellation or termination, and the notice would have to go out at least 30 days ahead of time.

For cardholders, that gap matters because a sudden shutdown can interrupt everyday spending and knock automatic bills off track. A 30-day window gives someone time to move subscriptions, update payment information and decide what to do with any balance left on the card.

The act would take effect 120 days after it becomes law.

When issuers can still act

The bill leaves several fast-exit situations intact. The notice rule would not apply if the issuer is closing an account because of fraud, misuse, identity theft or unauthorized use affecting the account, or because the cardholder is delinquent, in default or otherwise not meeting account terms.

It also carves out bankruptcy, insolvency, receivership, death, legal incapacity, inability to repay and any federal, state or local law, court order, legal process, sanctions requirement or anti-money-laundering obligation that requires or reasonably justifies action. Those exceptions are the guardrails that keep the notice rule from blocking urgent or legally required shutdowns.