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Who cares
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Sponsors
18 Co-sponsors
History
- Substituted by S5896D
- Amended on third reading 9784c
- Advanced to third reading cal.841
- Reported
- Print number 9784b
- Amend and recommit to judiciary
- Print number 9784a
- Amend and recommit to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to distressed property consultants advertisements
Signed by Governor · Sponsor Jeffrey D. Klein
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A9784C
Title of bill
An act to amend the real property law, in relation to distressed property consultants advertisements
Purpose
This bill requires that distressed property consultants provide information about the availability of free state-funded services in their advertisements.
Summary of provisions
Section 1: Adds a new subdivision 3-a to Real Property Law section 265-b to provide that any advertisements, be they in print media or electronic media, for the services of a distressed property consultant must include a statement that such services are available and can be provided for free from certified Housing Counse- lors. Further that a listing of such counselors is available from the NYS Banking Department.
Justification
This bill requires that all companies that offer distressed property consulting services as defined by law, must include a statement that alerts consumers that the services that they provide can often be provided for free through housing counselors funded by New York state, It also requires that these companies must provide the number of the New York State Banking Department as part of the consumer disclosure statement.
With the onset of the subprime lending crisis and the resulting economic crisis, the nationwide jump in foreclosures and mortgage defaults has triggered a corresponding rise in the number of predatory scams target- ing financially-strapped homeowners. The federal government recently announced a crackdown on loan modification and foreclosure rescue scams. Further, the FBI is currently targeting more than 2,000 companies for allegedly scamming troubled homeowners with "rescue" offers -- up 4000 from five years ago. Also, a recent Federal Trade Commission (FTC) investigation of nationwide online and print ads offering mortgage fore- closure rescue assistance found that about 70 separate companies were running questionable ads.
In the Spring of 2009, Attorney General Andrew Cuomo announced that his office-was conducting a statewide investigation into the loan modifica- tion industry. Subpoenas were filed against twelve companies that offer these services to consumers across New York. According to the Attorney General's investigation, many, of these companies lured consumers through false and misleading tactics, such as using company names and advertisements that give the false impression that they are affiliated with a government agency. Further, such advertisements falsely claim to have extraordinarily high success rates - of as much as 100 percent, and falsely claimed to have a special relationship with the homeowner's lender.
Capitalizing on the 'current economic downturn and housing crisis, these companies often scour foreclosure notices and filings and prey on consumers desperate to save their homes froth being foreclosed. Their
solicitations may be in person, by mail, telephone or e-mail, or via advertisements. Often, these scammers use titles that sound official, such as "foreclosure or mortgage consultant" or falsely market them- selves as a "foreclosure service" or "foreclosure rescue company."
By requiring a consumer warning statement in all distressed property consultant advertisements with the phone number of the New York State Banking Department as well as a reminder that New York State provides free counseling services, this legislation will reduce the number of distressed New York State homeowners who compound their financial diffi- culties by falling victim to the misleading advertisements of distressed property consulting companies.
Legislative history
New bill.
FISCAL IMPLICATIONS:; None.
Effective date
On the sixtieth day after becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.