Assembly Bill A4175

2023-2024 Legislative Session

Relates to civil penalties associated with financial frauds

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


  • 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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2023-A4175 (ACTIVE) - Details

Current Committee:
Assembly Banks
Law Section:
Financial Services Law
Laws Affected:
Amd §§408 & 104, Fin Serv L
Versions Introduced in Other Legislative Sessions:
2019-2020: A8187
2021-2022: A8063, A8291

2023-A4175 (ACTIVE) - Summary

Relates to civil penalties associated with financial frauds; redefines financial product or service to include warranties sold or provided to a consumer or small business or any guaranty or suretyship provided by a consumer.

2023-A4175 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4175
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 10, 2023
                                ___________
 
 Introduced  by  M.  of A. HUNTER, FAHY, DICKENS, SAYEGH -- read once and
   referred to the Committee on Banks
 
 AN ACT to amend the financial services law, in relation to civil  penal-
   ties for financial fraud
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 408 of the financial services  law  is  amended  to
 read as follows:
   §  408.  Civil  penalty.  [(a)]  In  addition to any civil or criminal
 liability provided by law, the  superintendent  may,  after  notice  and
 hearing, levy a civil penalty:
   [(1)] (A) not to exceed five thousand dollars per offense, for:
   [(A)]  (1) any [intentional] fraud [or intentional], misrepresentation
 [of a material fact], OR UNFAIR, DECEPTIVE, OR ABUSIVE ACT  OR  PRACTICE
 with  respect  to a financial product or service or involving any person
 offering to provide or  providing  financial  products  or  services  OR
 INVOLVING  ANY  SERVICE  PROVIDER  UTILIZED  BY  ANY  PERSON OFFERING TO
 PROVIDE OR PROVIDING FINANCIAL PRODUCTS OR SERVICES; or
   [(B)] (2) any violation of state or federal fair debt collection prac-
 tices or federal or state fair lending laws; and
   [(2)] (B) not to exceed one thousand dollars for any  other  violation
 of  this  chapter  or  the  regulations issued thereunder, provided that
 there shall be no civil penalty under this  section  for  violations  of
 article five of this chapter or the regulations issued thereunder; and
   [(3)] (C) provided, however, that:
   [(A)]  (1) penalties for regulated persons under the banking law shall
 be as provided for in  the  banking  law  and  penalties  for  regulated
 persons  under  the insurance law shall be as provided for in the insur-
 ance law; and

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04180-01-3
 A. 4175                             2
 
              

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