Prohibits creditors from enforcing a consumer debt incurred as a result of fraud, duress, intimidation, threat, force, identity theft, exploitation of the debtor's personal information or similar economic abuse perpetrated against a debtor; establishes a right of action by the debtor for relief against creditors for violations; makes related provisions.
Summary
Bill S01353 aims to amend the New York General Business Law by establishing a right of action for individuals who have incurred debts as a result of coercion, fraud, or economic abuse. The bill defines 'coerced debt' as any debt incurred through intimidation, threats, or manipulation, and outlines the necessary documentation required for debtors to assert their claims. It mandates that creditors cease collection activities upon receiving notice of coerced debt and provides a framework for debtors to dispute such debts, including the right to seek statutory damages for violations.
Impact
The passage of this bill would significantly alter the landscape of consumer debt collection in New York. It would provide a legal avenue for individuals to challenge debts that they claim were incurred under coercive circumstances, thereby enhancing consumer protections. This legislation would also impose new obligations on creditors regarding how they handle claims of coerced debt, potentially leading to changes in debt collection practices and increased accountability for creditors who violate these provisions.
Sentiment
The sentiment surrounding Bill S01353 has been largely positive, as evidenced by its unanimous support in committee votes and a strong majority in the Senate and Assembly floor votes. Advocates for consumer protection and domestic violence survivors have expressed strong support for the bill, viewing it as a necessary measure to protect vulnerable individuals from financial exploitation. However, some concerns were raised regarding the implications for creditors and the potential for increased litigation.
Contention
Notable points of contention include concerns from some creditor representatives about the potential for increased litigation and the burden of proof placed on creditors when a debtor claims a debt is coerced. Critics argue that the bill could lead to frivolous claims and complicate the debt collection process. Supporters counter that the bill is essential for protecting consumers from economic abuse and ensuring that debts incurred under coercive circumstances are not enforced.
Same As
Prohibits creditors from enforcing a consumer debt incurred as a result of fraud, duress, intimidation, threat, force, identity theft, exploitation of the debtor's personal information or similar economic abuse perpetrated against a debtor; establishes a right of action by the debtor for relief against creditors for violations; makes related provisions.
Prohibits creditors from enforcing a consumer debt incurred as a result of fraud, duress, intimidation, threat, force, identity theft, exploitation of the debtor's personal information or similar economic abuse perpetrated against a debtor; establishes a right of action by the debtor for relief against creditors for violations; makes related provisions.
Prohibits creditors from enforcing a consumer debt incurred as a result of fraud, duress, intimidation, threat, force, identity theft, exploitation of the debtor's personal information or similar economic abuse perpetrated against a debtor; establishes a right of action by the debtor for relief against creditors for violations; makes related provisions.
Prohibits creditors from enforcing a consumer debt incurred as a result of fraud, duress, intimidation, threat, force, identity theft, exploitation of the debtor's personal information or similar economic abuse perpetrated against a debtor; establishes a right of action by the debtor for relief against creditors for violations; makes related provisions.
Relates to actions for claims arising out of coerced debts; limits certain actions; established a right of action against person who causes another to incur coerced debt.
Relates to actions for claims arising out of coerced debts; limits certain actions; established a right of action against person who causes another to incur coerced debt.