Senate Bill S2278

2023-2024 Legislative Session

Establishes a right of action for claims arising out of coerced debts

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Sponsored By

Current Bill Status - On Floor Calendar


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Actions
Votes

Bill Amendments

co-Sponsors

2023-S2278 - Details

Law Section:
General Business Law
Laws Affected:
Add Art 29-HHH §§604-aa - 604-cc, Gen Bus L

2023-S2278 - Summary

Prohibits creditors from enforcing a consumer debt incurred as a result of fraud, duress, intimidation, threat, force, identity theft, exploitation of the debtor's personal information or similar economic abuse perpetrated against a debtor; establishes a right of action by the debtor for relief against creditors for violations; makes related provisions.

2023-S2278 - Sponsor Memo

2023-S2278 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2278
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sen.  CLEARE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law, in relation to establishing  a
   right of action for claims arising out of coerced debts
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 29-HHH to read as follows:
                               ARTICLE 29-HHH
                      ACTIONS INVOLVING COERCED DEBTS
 SECTION 604-AA. DEFINITIONS.
         604-BB. NOTICE OF COERCED DEBT.
         604-CC. COERCED DEBT CAUSE OF ACTION AND AFFIRMATIVE DEFENSE.
   § 604-AA. DEFINITIONS. AS USED IN THIS ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "ACTION" MEANS ANY CIVIL JUDICIAL PROCEEDING AS DEFINED IN SECTION
 ONE HUNDRED FIVE OF THE CIVIL PRACTICE LAW AND RULES.
   2. "ADEQUATE DOCUMENTATION OF COERCED DEBT" MEANS  DOCUMENTATION  THAT
 IDENTIFIES  A  PARTICULAR  DEBT,  OR A PORTION THEREOF, AS COERCED DEBT,
 DESCRIBES THE CIRCUMSTANCES UNDER WHICH SUCH COERCED DEBT WAS  INCURRED,
 AND TAKES THE FORM OF ANY OF THE FOLLOWING:
   (A) A POLICE REPORT;
   (B) A FEDERAL TRADE COMMISSION IDENTITY THEFT REPORT THAT IDENTIFIES A
 PARTICULAR DEBT, OR PORTION THEREOF, AS A COERCED DEBT;
   (C)  AN  ORDER  FROM  A  COURT OF COMPETENT JURISDICTION SETTING FORTH
 FINDINGS OF COERCED DEBT; OR
   (D) A WRITTEN VERIFICATION, FROM A QUALIFIED THIRD PARTY TO  WHOM  THE
 DEBTOR  REPORTED THE COERCED DEBT, WHICH SHALL BE SATISFIED BY ANY SWORN
 OR NOTARIZED STATEMENT INCLUDING THE REQUIRED INFORMATION AS WELL AS THE
 LETTERHEAD, ADDRESS,  AND  TELEPHONE  NUMBER  OF  SUCH  QUALIFIED  THIRD
 PARTY'S EMPLOYER OR, IF SELF-EMPLOYED, OF SUCH QUALIFIED THIRD PARTY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05065-01-3
              

co-Sponsors

2023-S2278A (ACTIVE) - Details

Law Section:
General Business Law
Laws Affected:
Add Art 29-HHH §§604-aa - 604-cc, Gen Bus L

2023-S2278A (ACTIVE) - Summary

Prohibits creditors from enforcing a consumer debt incurred as a result of fraud, duress, intimidation, threat, force, identity theft, exploitation of the debtor's personal information or similar economic abuse perpetrated against a debtor; establishes a right of action by the debtor for relief against creditors for violations; makes related provisions.

2023-S2278A (ACTIVE) - Sponsor Memo

2023-S2278A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2278--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced by Sens. CLEARE, COMRIE, HOYLMAN-SIGAL, SALAZAR -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on  Consumer  Protection  --  recommitted to the Committee on Consumer
   Protection in accordance with Senate  Rule  6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT to amend the general business law, in relation to establishing a
   right of action for claims arising out of coerced debts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 29-HHH to read as follows:
                               ARTICLE 29-HHH
                      ACTIONS INVOLVING COERCED DEBTS
 SECTION 604-AA. DEFINITIONS.
         604-BB. NOTICE OF COERCED DEBT.
         604-CC. COERCED DEBT CAUSE OF ACTION AND AFFIRMATIVE DEFENSE.
   §  604-AA.  DEFINITIONS.  AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "ACTION" MEANS ANY CIVIL JUDICIAL PROCEEDING AS DEFINED IN  SECTION
 ONE HUNDRED FIVE OF THE CIVIL PRACTICE LAW AND RULES.
   2.  "ADEQUATE  DOCUMENTATION OF COERCED DEBT" MEANS DOCUMENTATION THAT
 IDENTIFIES A PARTICULAR DEBT, OR A PORTION  THEREOF,  AS  COERCED  DEBT,
 DESCRIBES  THE CIRCUMSTANCES UNDER WHICH SUCH COERCED DEBT WAS INCURRED,
 AND TAKES THE FORM OF ANY OF THE FOLLOWING:
   (A) A POLICE REPORT;
   (B) A FEDERAL TRADE COMMISSION IDENTITY THEFT REPORT THAT IDENTIFIES A
 PARTICULAR DEBT, OR PORTION THEREOF, AS A COERCED DEBT;
   (C) AN ORDER FROM A COURT  OF  COMPETENT  JURISDICTION  SETTING  FORTH
 FINDINGS OF COERCED DEBT; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05065-05-4
 S. 2278--A                          2
              

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