Requires debt collectors to send consumers a written notice of their rights under state law along with their debt collection correspondence

10 Co-sponsors

• Michael Gianaris
• Barbara Clark
• Felix Ortiz
• Joan Millman
• Annette Robinson
• Jose Rivera
• Michael Benjamin
• Dennis H. Gabryszak
• Naomi Rivera
• Ellen C. Jaffee

25 Multi-sponsors

• Thomas Alfano
• Jeffrion Aubry
• Robert Barra
• James F. Brennan
• Vivian Cook
• Steven Cymbrowitz
• Francine DelMonte
• Steven Englebright
• Herman D. Farrell
• Deborah Glick
• Richard Gottfried
• Earlene Hooper
• Sam Hoyt
• Rhoda Jacobs
• Barbara Lifton
• Donna Lupardo
• William Magee
• William Magnarelli
• Amy Paulin
• N. Nick Perry
• J. Gary Pretlow
• William Scarborough
• Darryl Towns
• Helene Weinstein
• Harvey Weisenberg

BILL NUMBER:A271B

Title of bill

An act to amend the general business law and the execu- tive law, in relation to debt collection notices

Purpose of general idea of bill

To provide a Debtor's Bill of Rights" to inform consumers of certain provisions of New York's debt collection practices law.

Summary of specific provisions

This bill would set forth a specific notice-to consumers, to be included in each initial correspondence on a past due debt, of such consumer's rights under the New York law regulat- ing debt collection practices. The notice would contain information such as who and when a debt collector may contact a debtor about the debt owed as well as the fact that a debt collector cannot disclose informa- tion affecting a consumer debtor's reputation for credit worthiness if the debt collector knows or has reasons to know that the information is false. The bill also clarifies the notice regarding permissible contact with a debtor's employer (Debtor's Bill of Rights paragraph 2).

Adds a new section 601-a to the general business law and amends section 602 of such law.

Justification

Debt is a fact of many consumer's lives. Some manage their debt without a problem - others do not. Consumers who cannot manage their debt may find themselves the subjects of debt collection. Faced with the inability to payoff a loan or credit card bill, consumers are contacted by creditors as well as professional debt collectors. Abuses have arisen in the debt collection area. Creditors and debt collectors have contacted consumers at work in ways that violate the law; late at night; and through unauthorized third parties. With consum- er debt dramatically increasing through the 1980's, these practices proliferated. In fact, there have been reports of debt collectors park- ing a hearse in front of an individual's home with "A deadbeat lives here" written on it. These and other practices are not only outside the law, they are outrageous and must stop.

An effective way to curb abuses of the law and, provide benefits to consumers and businesses is to inform consumers of the limitations placed on debt collectors by New York Law. Consumers deserve to be treated fairly and reasonably, even when they have outstanding debts. At the same time, business benefits from consumers paying their debts. If debts are not paid, the cost of business increases - harming the business, competition and consumers.

Prior legislative history

2007-2008: A.221 - Passed Assembly 2005-2006: A.614 - advanced to Third Reading 2003-2004: A.3549 - advanced to Third Reading

Fiscal implications

None to. the State.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become law.