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A4903Assembly2017-2018 SessionSame asS3491

Tell Families Debt Rules

Official title

“Requires disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family and household members”

Sponsor Linda RosenthalAD-67+9 co-sponsorsAffects Legal
Status
Assembly Floor Calendar
Impact
4/10
Low
Outcome
Companion signed

Bill progress

Signed via S3491

What's happening

This bill prohibits debt collectors from misrepresenting a family member's obligation to pay a deceased person's debt and defines "debt collection agency."

Why it matters

  1. Reduces emotional and financial stress on grieving families. by making it illegal for debt collectors to falsely claim family members must pay a deceased relative’s debts, helping protect vulnerable individuals from intimidation or manipulation during a difficult time.

  2. Improves transparency and accountability. in the debt collection industry by explicitly defining what counts as a "debt collection agency," making it easier for regulators and consumers to identify and take action against violators.

  3. Aligns state law with federal standards. (the Fair Debt Collection Practices Act), closing loopholes and reinforcing that New York consumers are entitled to the same protections as those provided at the federal level.

  4. May reduce the prevalence of deceptive collection practices. by clarifying legal boundaries for collectors, potentially leading to fewer complaints and legal disputes related to the collection of debts from deceased individuals’ families.

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Who cares

Headline styles

Tell Families Debt Rules

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Linda Rosenthal

Assembly Member · Assembly District 67

History

  1. Substituted by S3491A
  2. Rules report cal.309
  3. Reported
  4. Reported referred to rules
  5. Print number 4903a
  6. Amend (t) and recommit to codes
  7. Referred to codes
  8. Reported referred to rules
  9. Reported referred to codes
  10. Referred to consumer affairs and protection

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.

S3491Senate

Debt Collection Disclosure Required

Signed by Governor · Sponsor Jamaal Bailey

Impact 4 · LowSigned into law

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

4903--A

2017-2018 Regular Sessions

IN ASSEMBLY

February 6, 2017

Introduced by M. of A. L. ROSENTHAL, GLICK, JAFFEE, DenDEKKER, HOOPER, COOK, M. G. MILLER, ABINANTI, WEPRIN, GOTTFRIED -- Multi-Sponsored by -- M. of A. CAHILL, GUNTHER, MAGEE, PERRY, SOLAGES -- read once and referred to the Committee on Consumer Affairs and Protection -reported and referred to the Committee on Codes -- recommitted to the Committee on Codes in accordance with Assembly Rule 3, sec. 2 -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the general business law, in relation to disclosure by principal creditors and debt collection agencies of the legal obligations of a deceased debtor's family and household members

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The general business law is amended by adding a new section 601-a to read as follows:

§ 601-a. Disclosure by principal creditors and/or debt collection agencies. No principal creditors and/or debt collection agencies shall make any representation that a person is required to pay the debt of a family member in a way that contravenes with the Fair Debt Collection Practices Act (15 USC § 1692 et seq.). In addition, the principal creditors and/or debt collection agencies shall not make any misrepresentation about the family member's obligation to pay such debts.

§ 2. Section 600 of the general business law is amended by adding a new subdivision 4 to read as follows:

4. "Debt collection agency" shall mean a person, firm or corporation engaged in business, the principal purpose of which is to regularly collect or attempt to collect debts: (a) owed or due or asserted to be owed or due to another; or (b) obtained by, or assigned to, such person, firm or corporation, that are in default when obtained or acquired by such person, firm or corporation.

§ 3. This act shall take effect on the ninetieth day after it shall have become a law.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD05039-02-8

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.