PA 17-26—sHB 7015

Banking Committee

Judiciary Committee

AN ACT CONCERNING DEBIT CARD FRAUD AND PENALTIES FOR COLLECTION OF RENTAL PAYMENTS ON FORECLOSED PROPERTY

SUMMARY: This act expands credit card crimes to cover crimes involving debit cards. It defines a “debit card” as any card, code, device, or other means of access, or combination of them that (1) is issued or authorized to debit an asset account held directly or indirectly by a financial institution and (2) the cardholder may use to obtain money, goods, services, or anything of value. The card itself does not have to be called a debit card. The act specifically covers payroll and ATM cards but excludes checks, drafts, or similar paper instruments and their electronic representations. The act also changes how notice of a card's revocation must be sent for purposes of these crimes and expands certain credit card crimes to cover falsely loading payment cards (i.e., credit or debit cards) into digital wallets.

The act also makes it a form of larceny for a previous mortgagor of real property against whom a final foreclosure judgment has been entered to continue to collect rent after a final judgment if he or she has no right to do so. Generally, larceny crimes punish someone who wrongfully takes property from its owner, intending to deprive the owner of the property or appropriate it to someone else. The penalty for larceny varies, based on the value of property taken, from a class C misdemeanor to a class B felony (see Table on Penalties).

EFFECTIVE DATE: October 1, 2017

CREDIT AND DEBIT CARD CRIMES

The act expands the credit card crimes described in Table 1 to cover the same conduct involving debit cards.

Table 1: Credit Card Crimes Expanded by the Act to Cover Debit Cards

Statutory Citation

Conduct

Penalty

53a-128b

Knowingly making a false statement in writing, with the intent that it be relied on, about a person's identity or financial condition to procure a card

Class A misdemeanor

(see Table on Penalties)

53a-128c(a)

Taking a card from someone without the cardholder's or issuer's consent, or receiving a card knowing it was taken without consent and with intent to use, sell, or transfer it to another

Class A misdemeanor

53a-128c(b)

Receiving a card knowing it has been lost, mislaid, or delivered by mistake and keeping it with intent to use, sell, or transfer it to someone

Class A misdemeanor

53a-128c(c)

Non-issuer selling a card or anyone buying a card from someone other than an issuer

Class A misdemeanor

53a-128c(d)

Obtaining control over a card as security for a debt, with intent to defraud

Class A misdemeanor

53a-128c(e)

Receiving cards issued in the names of at least two people that the person has reason to know were taken or kept under circumstances that amount to card theft or certain other card crimes

Class D felony

53a-128c(f)

Falsely making or embossing a card with intent to defraud

Class D felony

53a-128c(g)

Someone other than a cardholder or authorized person signing a card with intent to defraud

Class A misdemeanor

53a-128d

With intent to defraud:

1. using a card obtained or retained through false statements to obtain money, goods, services, or anything of value;

2. obtaining money, goods, services, or anything of value by representing without the cardholder's consent that he or she is the cardholder and the card has not in fact been issued; or

3. using an illegally obtained or retained card or one known to be forged, expired, or revoked, as authority or identification to cash, attempt to cash, negotiate, or transfer a check or other money order that would violate checking laws

If value of money or property illegally obtained within six months is up to $500: Class A misdemeanor

If above value exceeds $500 within six months: Class D felony

53a-128e(a)

Furnishing money, goods, services, or anything of value when (1) presented with a card obtained by theft or certain other illegal means or which the person knows is forged, expired, or revoked and (2) intending to defraud the issuer, participating party, cardholder, or someone else

If value of money or property illegally obtained within six months is up to $500: Class A misdemeanor

If above value exceeds $500 within six months: Class D felony

53a-128e(b)

Falsely representing in writing to the card issuer, with intent to defraud, that money, goods, services, or anything of value was furnished upon the appropriate presentation of a card

If , within six months, difference in value of money or property furnished exceeds the value represented by up to $500: Class A misdemeanor

If above value exceeds $500 within six months: Class D felony

53a-128f

Someone, other than cardholder, possessing or controlling at least two incomplete cards or purported distinctive elements of a card, intending to complete or use them to produce cards without the issuer's consent

Possessing or controlling a distinctive element of a card or machinery, plates, or items designed to produce instruments purporting to be cards when the issuer has not consented to it

Class D felony

For all of these crimes, the act also expands who is considered a “cardholder.” Under existing law, a cardholder is the person named on the card to whom or for whose benefit the card is issued. The act also includes a person who lawfully acquired the card if the card does not have the person's name on it.

Some of the crimes described above (e.g., CGS 53a-128d) punish actions knowingly taken with a revoked card. The law presumes knowledge of a card's revocation four days after notice if it is mailed to the cardholder at his or her address on the card or last known address. The act eliminates a requirement that the revocation notice be sent by registered or certified mail, return receipt requested, or by airmail if the addressee is more than 500 miles away. By law, notice is presumed received 10 days after mailing by registered or certified mail if the address is outside the U.S., Puerto Rico, the Virgin Islands, the Canal Zone, or Canada.

DIGITAL WALLETS

The act expands the false statement crime described above (CGS 53a-128b) to include false statements to procure the loading of a payment card into a digital wallet. By law, this crime is a class A misdemeanor.

The act also makes it a class D felony to falsely load, or cause false loading of, a payment card into a digital wallet, with intent to defraud. The act defines a “digital wallet” as a software application used on a computer or other device, including a mobile device, to store digital forms of payment cards that can be used to obtain money, goods, services, or anything of value.

Under the act, a person falsely loads or causes false loading of a payment card into a digital wallet when he or she stores or causes to be stored on a digital wallet the digital form of a payment card that (1) is falsely made or embossed by the person; (2) is taken, procured, received, or retained by the person under circumstances that amount to certain types of payment card fraud under the act; or (3) he or she knows is falsely made or embossed, forged, expired, or revoked.

OLR Tracking: MK; JKL; PF; AR; cmg

OTHER ACTS AMENDED:

INDEX SUGGESTIONS:

CREDIT Cards

Debit Cards

CRIME

Cardholder

Digital Wallet