NY: New Law Prevents Telecoms, Utilities From Charging Customers That Have Died

Published 09/27 2016 02:29PM

Updated 09/27 2016 02:37PM

Copyright 2016 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

New York's Governor Andrew Cuomo signed legislation on Tuesday that prevents telecommunications companies and utility providers from charging a contract termination or early cancelation fee in the event of a customer's death.

"This was a heartless and inappropriate policy that is mostly borne by grieving New Yorkers grappling with the loss of a loved one," Governor Cuomo said.

"Ending these fees is the right thing to do and will spare those in mourning from this annoying burden," added Cuomo. 

Many companies use early termination fees to ensure that a customer continues to use a service through the full contract period.

Under this new law, landline, cell phone, television, internet, energy and water service providers are prohibited from charging contract termination or early cancelation fees if a customer dies before the end of an agreement.

In addition, a civil penalty of up to $1,000 will be placed on providers that violate this law. This measure takes effect immediately.

 

Copyright 2016 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.