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A4946Assembly2017-2018 SessionSame asS3101

Let Debtors Sue Collectors

Official title

“Creates a private right of action for improper debt collection procedures”

Sponsor Aravella SimotasAD-36+14 co-sponsorsAffects Legal
Status
Assembly Floor Calendar
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 3 of 7

Floor calendar · Jan 3

What's happening

This bill allows debtors in New York to sue for damages and attorney's fees if subjected to improper debt collection practices.

Why it matters

  1. Empowers individuals. By allowing debtors to sue for actual and punitive damages, this bill gives people more leverage to hold debt collectors accountable for illegal or abusive practices.

  2. Deters misconduct. The possibility of punitive damages and mandatory attorney's fees increases the risks and costs for debt collectors who violate the law, creating a stronger incentive for compliance.

  3. Levels the legal playing field. Many debtors can't afford to hire a lawyer; by requiring violators to pay reasonable attorney's fees, the bill enables more people to seek justice regardless of their financial situation.

  4. Signals stricter enforcement. This change indicates a legislative shift toward stronger consumer protection in debt collection, potentially leading to industry-wide changes in how debts are pursued in New York.

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Who cares

Headline styles

Let Debtors Sue Collectors

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

Sponsors

Primary sponsor
Aravella Simotas

Assembly Member · Assembly District 36

History

  1. Ordered to third reading cal.353
  2. Advanced to third reading cal.214
  3. Reported
  4. Reported referred to codes
  5. 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.

S3101Senate

Let Debtors Sue Collectors

In Senate Committee · Consumer Protection · Sponsor Michael Gianaris

Impact 5 · Moderate0% to pass

Full text

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

STATE OF NEW YORK

4946

2017-2018 Regular Sessions

IN ASSEMBLY

February 6, 2017

Introduced by M. of A. SIMOTAS, JAFFEE, M. G. MILLER, ROSENTHAL, ABINAN- TI, WEPRIN, BLAKE, ORTIZ, SIMON, COLTON, STECK -- Multi-Sponsored by -- M. of A. COOK, HOOPER, PERRY -- read once and referred to the Committee on Judiciary

AN ACT to amend the general business law, in relation to allowing a private right of action for improper debt collection

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

Section 1. Section 602 of the general business law is amended by adding a new subdivision 4 to read as follows:

4. A debtor shall have a private right of action against any person or persons in violation of this article. Such person or persons shall be liable to the debtor for any actual damages the debtor sustained as a result of the violation of this article, any punitive damages awarded by the court, and reasonable attorney's fees.

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

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

[ ] is old law to be omitted.

LBD04145-01-7

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.