What's happening
This bill requires debt collectors in New York to provide accurate information about family members’ obligations for a deceased person's debts, prohibiting misleading statements.
Why it matters
Protects grieving families from predatory or misleading debt collection tactics. by making it illegal for collectors to falsely claim relatives are required to pay a deceased person’s debts, reducing emotional and financial distress during a vulnerable time.
Aligns state-level debt collection practices with federal standards. (specifically the Fair Debt Collection Practices Act), ensuring consistency and legal clarity for both collectors and consumers in New York.
Expands the definition of “debt collection agency”. to clarify who is covered under these rules, making it harder for collectors to evade responsibility by exploiting legal loopholes or technicalities.
Shifts the burden of transparency onto creditors and collectors. , requiring them to provide accurate information about legal obligations, which empowers consumers to make informed decisions and assert their rights confidently.
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Who cares
Headline styles
Debt Collection Disclosure Required
Plain English, a few words. Used as the page title.
Sponsors
History
- Signed chap.471
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.309
- Substituted for A4903A
- Referred to consumer affairs and protection
- Delivered to assembly
- Passed senateVote 61–0
- Ordered to third reading cal.1548
- Committee discharged and committed to rules
- Referred to consumer protection
Show 3 earlier actions
- Print number 3491a
- Amend and recommit to consumer protection
- Referred to consumer 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.
Tell Families Debt Rules
Assembly Floor Calendar · Sponsor Linda Rosenthal
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3491--A
2017-2018 Regular Sessions
IN SENATE
January 23, 2017
Introduced by Sens. BAILEY, ALCANTARA, GOLDEN, HAMILTON, LATIMER, MONT- GOMERY, SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- 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.
LBD08621-02-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
This bill would require that no debt collection agencies shall make any representation that surviving family and household members are required to pay the outstanding debts of a deceased family member.
Summary of specific provisions
Section one amends the general business law by adding a new section 601-a. This section requires that 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 as provided for in 15 U.S.C. §§ 1692-1692p.
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.
Section two amends section 600 of the general business law by adding a new subdivision 4. This section defines 'debt collection agency'.
Section three sets out the effective date.
Justification
Recent investigations have shown that debt collection companies often pursue payments from relatives of deceased debtors. A New York Times article described the practices of a debt collection agency whose agents are specially trained to employ "empathic active listening" techniques to comfort grieving families while luring them into paying the deceased's debts. This may be a violation of the Fair Debt Collection Practices Act since this law prevents collection companies from contacting anyone other than the debtor about outstanding bills. Even if this practice is not illegal, this legislation will ensure that debt collectors are not soliciting relatives of the deceased for payment of a debt. As it stands, all relatives of deceased debtors are not required by law to assume self loved ones' debts but collection agencies often omit this information when they ask the relatives to make payments on outstanding bills.
Prior legislative history
2009-10: S.5046-A - Referred to Consumer Protection 2011-12: S.3281 - Committed to Rules 2013-14: S.3317 - Referred to Consumer Protection 2015-16: S.2032 - Referred to Consumer Protection
Fiscal implications
None.
Effective date
This act shall take effect on the ninetieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.