2013 New York Consolidated Laws
GBS - General Business
Article 34 - (701 - 707) CREDITOR BILLING ERRORS
703 - Notice of error and response.

 
    § 703. Notice of error and response. If a creditor, having transmitted
  to  a  consumer a statement of the consumer's account, receives from the
  consumer at an address designated therefor by the creditor in accordance
  with section seven hundred five of this article, within  sixty  days  of
  the  mailing  of  said  statement, a written notice, on a document other
  than a document provided by the creditor to accompany  payment,  setting
  forth  sufficient  information  to  enable  the creditor to identify the
  consumer and the account,  the  amount  and  transaction  shown  in  the
  statement  which  the  consumer  in  good faith believes to be a billing
  error, and the facts providing the basis for the consumer's belief  that
  the statement is in error; the creditor shall:
    1.  Not  later  than  thirty  days after receipt of the notice, mail a
  written acknowledgment to the consumer; and
    2. Not later than ninety days after receipt of the notice and prior to
  taking any action to collect the amount believed by the consumer to be a
  billing error, (a) make appropriate corrections in the  account  of  the
  consumer  and  mail  to  the  consumer a written notice stating that the
  amount believed to be in error has been corrected and will be  shown  on
  the  next  statement mailed to the consumer or (b) send a written notice
  to the consumer setting forth the reasons why the creditor believes  the
  account of the consumer was correctly shown in the statement; and
    3.  Not  communicate  unfavorable  credit  information  concerning the
  consumer to any person, including but not limited to credit  bureaus  or
  credit  reporting agencies, based upon the consumer's failure to pay the
  amount believed by him to be a billing error,  until  the  creditor  has
  complied with this section.