NY Gov Signs Law Prohibiting Imposition Of Termination Fee In Event Of Customer’s Death
September 30,2016
Governor Andrew M. Cuomo signed this week legislation that prevents energy companies from charging a contract termination or early cancellation fee in the event of a customer's death.
Although inspired by an Assemblywoman's experience with a phone service provider, the law was written to include, among others, providers of, "energy", service
Cuomo specifically signed A.8630A /S.6485-A which prohibits certain companies, including providers of "energy" services, from imposing a fee for termination or early cancellation of a service contract in the event the customer has deceased before the end of such contract.
Every violation of the law shall be punishable by a civil penalty not to exceed one thousand dollars.
The law takes effect immediately.
The law was prompted by the charging of an early termination fee by a telecom provider to the account of the deceased mother of Assemblywoman Aileen M. Gunther