N.Y. GBS Law § 514

§ 514. Defenses. 1. In any action for a cash advance or loan or for\nthe purchase or lease of property or services through the use of a\ncredit card or a debit card, it shall be a defense that such obligation\n (a) arose out of the unauthorized use of a credit card or a debit card\nwhich was not delivered to the holder; or\n (b) arose subsequent to the giving of notice by the holder to the\nissuer of the unauthorized use, loss or theft, of such credit card or\ndebit card; or\n (c) is in excess of the limitation of liability for the unauthorized\nuse of a credit card provided in the act of congress entitled "Truth in\nLending Act" and the regulations thereunder, as such act and regulations\nmay from time to time be amended.\n 2. If any of the defenses set forth in subdivision one of this section\nbe established, the court shall order the issuer to pay the reasonable\nattorney's fees incurred in the defense of the action if the court finds\n (a) that the holder has cooperated with the issuer in determining the\nfacts and circumstances relating to such unauthorized use, loss or\ntheft, of the credit card or debit card; and\n (b) that notwithstanding such cooperation with the issuer, the issuer\nhas brought the action without reasonable cause.\n