(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
NAME, MAILING ADDRESS, AND EMAIL ADDRESS OR TELEPHONE NUMBER, AS APPLI-
CABLE, OF SUCH QUALIFIED THIRD PARTY'S EMPLOYER OR, IF SELF-EMPLOYED, OF
SUCH QUALIFIED THIRD PARTY.
3. "COERCED DEBT", IN THE CONTEXT OF ECONOMIC ABUSE, MEANS DEBT THAT
WAS INCURRED AS A RESULT OF FRAUD, DURESS, INTIMIDATION, THREAT, FORCE,
COERCION, MANIPULATION, UNDUE INFLUENCE, THE NON-CONSENSUAL USE OF THE
DEBTOR'S PERSONAL INFORMATION, OR SIMILAR ECONOMIC ABUSE PERPETRATED
AGAINST A DEBTOR.
4. "CREDITOR" MEANS ANY PERSON, FIRM, CORPORATION OR ORGANIZATION TO
WHOM A DEBT IS OWED, DUE, OR ASSERTED TO BE DUE OR OWED, OR ANY ASSIGNEE
FOR VALUE OF SAID PERSON, FIRM, CORPORATION OR ORGANIZATION, INCLUDING
ANY DEBT COLLECTION AGENCY OR DEBT COLLECTOR AS DEFINED BY SECTION SIX
HUNDRED OF THIS CHAPTER; PROVIDED, HOWEVER, THAT "CREDITOR" SHALL NOT
INCLUDE A PERSON TO WHOM A DEBT IS ALLEGEDLY OWED, DUE, OR ASSERTED TO
BE DUE OR OWED, WHERE THE PERSON ASSERTING SUCH CLAIM CAUSED THE DEBT TO
ARISE BY ENGAGING IN ONE OR MORE ACTS OF COERCION, AS IDENTIFIED IN
SUBDIVISION THREE OF THIS SECTION, AGAINST THE DEBTOR.
5. "DEBT" MEANS ANY OBLIGATION OR ALLEGED OBLIGATION OF A CONSUMER TO
PAY MONEY ARISING OUT OF A TRANSACTION IN WHICH THE MONEY, PROPERTY,
INSURANCE, RENTAL ARREARS OWED FOR USE AND OCCUPANCY OF A DWELLING, OR
SERVICES WHICH ARE THE SUBJECT OF SUCH TRANSACTION ARE PRIMARILY FOR
PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, WHETHER OR NOT SUCH OBLIGATION
HAS BEEN REDUCED TO A JUDGMENT.
6. "DEBTOR" MEANS ANY NATURAL PERSON WHO OWES OR WHO IS ASSERTED TO
OWE A DEBT.
7. "ECONOMIC ABUSE", IN THE CONTEXT OF INTIMATE RELATIONSHIPS OR
RELATIONSHIPS BETWEEN FAMILY OR HOUSEHOLD MEMBERS AS DEFINED BY SECTION
FOUR HUNDRED FIFTY-NINE-A OF THE SOCIAL SERVICES LAW, RELATIONSHIPS
BETWEEN VICTIMS OF HUMAN TRAFFICKING AND TRAFFICKERS, OR RELATIONSHIPS
BETWEEN CHILDREN, THE ELDERLY, OR INDIVIDUALS ELIGIBLE FOR PROTECTIVE
SERVICES UNDER SUBDIVISION ONE OF SECTION FOUR HUNDRED SEVENTY-THREE OF
THE SOCIAL SERVICES LAW, AND THEIR CAREGIVERS, MEANS BEHAVIOR THAT IS
COERCIVE, DECEPTIVE, MANIPULATIVE, OR THAT CONTROLS, RESTRAINS, OR
SABOTAGES A PERSON'S ABILITY TO ACQUIRE, USE, OR MAINTAIN ECONOMIC
RESOURCES TO WHICH THEY ARE ENTITLED, INCLUDING BUT NOT LIMITED TO USING
COERCION, FRAUD, OR MANIPULATION TO:
(A) RESTRICT A PERSON'S ACCESS TO MONEY, ASSETS, CREDIT, OR FINANCIAL
INFORMATION;
(B) UNFAIRLY USE A PERSON'S PERSONAL INFORMATION OR PERSONAL ECONOMIC
RESOURCES, INCLUDING MONEY, ASSETS, AND/OR CREDIT; OR
(C) EXERT UNDUE INFLUENCE OVER A PERSON'S FINANCIAL AND ECONOMIC
BEHAVIOR OR DECISIONS, INCLUDING BUT NOT LIMITED TO FORCING DEFAULT ON
JOINT OR OTHER FINANCIAL OBLIGATIONS, EXPLOITING POWERS OF ATTORNEY,
GUARDIANSHIP, OR CONSERVATORSHIP, OR FAILING OR NEGLECTING TO ACT IN THE
BEST INTERESTS OF A PERSON TO WHOM ONE HAS A FIDUCIARY DUTY.
8. "PERSONAL INFORMATION" INCLUDES, BUT IS NOT LIMITED TO, A NAME,
ADDRESS, TELEPHONE OR MOBILE PHONE NUMBER, DRIVER REGISTRATION NUMBER OR
NON-DRIVER IDENTIFICATION CARD NUMBER, SOCIAL SECURITY NUMBER, EMAIL
ADDRESS, SOCIAL MEDIA PROFILE OR SCREEN NAME, PLACE OF EMPLOYMENT,
EMPLOYEE IDENTIFICATION NUMBER, MOTHER'S MAIDEN NAME, FINANCIAL SERVICES
ACCOUNT NUMBER OR CODE, SAVINGS ACCOUNT NUMBER OR CODE, CHECKING ACCOUNT
NUMBER OR CODE, DEBIT OR CREDIT CARD NUMBER OR CODE, AUTOMATED TELLER
MACHINE NUMBER OR CODE, ELECTRONIC SERIAL NUMBER, ANY PERSONAL IDENTIFI-
S. 2278--A 3
CATION NUMBER OR PASSWORD OF A DEBTOR, AND A DEBTOR'S PERSONAL DOCU-
MENTS, INCLUDING, BUT NOT LIMITED TO, SUCH DEBTOR'S DRIVER'S LICENSE OR
NON-DRIVER IDENTIFICATION CARD, PASSPORT, PERMANENT RESIDENT CARD, VISA,
BIRTH CERTIFICATE, SOCIAL SECURITY CARD, AND ANY COPIES THEREOF OR
INFORMATION CONTAINED THEREIN. "PERSONAL IDENTIFICATION NUMBER OR PASS-
WORD", AS USED IN THIS SUBDIVISION, MEANS ANY NUMBER OR ALPHANUMERIC
CODE WHICH MAY BE USED ALONE OR IN CONJUNCTION WITH ANY OTHER INFORMA-
TION TO ASSUME THE IDENTITY OF ANOTHER PERSON OR ACCESS FINANCIAL
RESOURCES OR CREDIT INFORMATION OF ANOTHER PERSON.
9. "PLEADING" MEANS ANY COMPLAINT, PETITION, COUNTERCLAIM, CROSS-
CLAIM, INTERPLEADER COMPLAINT, THIRD-PARTY COMPLAINT OR ANY SIMILAR
PAPERS ASSERTING A CLAIM AND DEMAND FOR RELIEF REQUIRED TO BE FILED WITH
THE COURT PURSUANT TO RULE TWENTY-ONE HUNDRED TWO OF THE CIVIL PRACTICE
LAW AND RULES, THE RULES OF THE CHIEF ADMINISTRATOR OF THE COURTS, OR
ANY LOCAL RULE OR PRACTICE ESTABLISHED BY THE COURT.
10. "QUALIFIED THIRD PARTY" MEANS ANY (A) LAW ENFORCEMENT OFFICER; (B)
EMPLOYEE OF A COURT OF THE STATE; (C) ATTORNEY, PHYSICIAN, PSYCHIATRIST,
PSYCHOLOGIST, SOCIAL WORKER, REGISTERED NURSE, THERAPIST, OR CLINICAL
PROFESSIONAL COUNSELOR LICENSED TO PRACTICE IN ANY STATE; (D) PERSON
EMPLOYED BY OR WORKING ON BEHALF OF A GOVERNMENT OR NON-PROFIT OFFICE,
AGENCY, OR SERVICE THAT ADVISES OR PROVIDES SERVICES TO PERSONS REGARD-
ING DOMESTIC VIOLENCE, FAMILY VIOLENCE, HUMAN TRAFFICKING, OR ABUSE OF
CHILDREN, THE ELDERLY, OR DEPENDENT ADULTS; OR (E) MEMBER OF THE CLERGY
OF A CHURCH OR RELIGIOUS SOCIETY OR DENOMINATION.
§ 604-BB. NOTICE OF COERCED DEBT. 1. UPON RECEIPT OF THE FOLLOWING, A
CREDITOR SHALL CEASE COLLECTION ACTIVITIES UNTIL COMPLETION OF THE
REVIEW UNDER SUBDIVISION THREE OF THIS SECTION:
(A) ADEQUATE DOCUMENTATION OF COERCED DEBT; AND
(B) THE DEBTOR'S STATEMENT THAT A PARTICULAR DEBT BEING COLLECTED, OR
PORTION THEREOF, IS COERCED DEBT.
2. (A) IF A DEBTOR NOTIFIES A CREDITOR BY ANY METHOD OR CIRCUMSTANCE
THAT MAY CONSTITUTE ECONOMIC ABUSE OR COERCED DEBT, SUCH CREDITOR SHALL
PROVIDE WRITTEN NOTICE TO SUCH DEBTOR THAT INCLUDES THE FOLLOWING TEXT:
"UNDER NEW YORK GENERAL BUSINESS LAW 604-BB, YOU HAVE THE RIGHT TO
DISPUTE DEBT THAT YOU BELIEVE IS COERCED DEBT. A DEBT IS "COERCED" WHEN
IT IS INCURRED IN A CONSUMER'S NAME BECAUSE OF THREATS, INTIMIDATION, OR
FORCE BY ANOTHER PERSON.
TO DISPUTE COERCED DEBT, YOU MUST SUBMIT A "NOTICE OF COERCED DEBT" IN
WRITING. THE "NOTICE OF COERCED DEBT" MUST INCLUDE TWO DOCUMENTS:
1 - A SWORN OR NOTARIZED STATEMENT BY YOU, THE ALLEGED DEBTOR, STATING
THAT A CERTAIN DEBT OR PORTION OF A DEBT BEING COLLECTED IS COERCED
DEBT.
2 - "ADEQUATE DOCUMENTATION OF COERCED DEBT"
TO PROVIDE "ADEQUATE DOCUMENTATION OF COERCED DEBT," YOU ARE REQUIRED
TO PROVIDE ONLY ONE OF THE FOLLOWING DOCUMENTS, BUT YOU MAY PROVIDE MORE
THAN ONE.
1 - A POLICE REPORT
2 - A FEDERAL TRADE COMMISSION IDENTITY THEFT REPORT
3 - A COURT ORDER FINDING THAT THE DEBT WAS COERCED
4 - A NOTARIZED STATEMENT FROM A "QUALIFIED THIRD PARTY" THAT YOU
REPORTED THE COERCED DEBT TO.
EXAMPLES OF "QUALIFIED THIRD PARTIES" INCLUDE SOCIAL WORKERS AND
ATTORNEYS; DOCTORS, NURSES, AND THERAPISTS; EMPLOYEES FROM GOVERNMENT OR
NON-PROFIT AGENCIES THAT WORK WITH SURVIVORS OF VIOLENCE; MEMBERS OF THE
CLERGY; ELECTED OFFICIALS; AND LAW ENFORCEMENT OFFICERS.
S. 2278--A 4
NO MATTER WHICH FORM OF "ADEQUATE DOCUMENTATION OF COERCED DEBT" YOU
PROVIDE, IT MUST IDENTIFY THE PARTICULAR DEBT, STATE THAT IT IS COERCED
DEBT, AND DESCRIBE THE CIRCUMSTANCES THAT CAUSED THE DEBT TO BE
INCURRED.
TO DISPUTE DEBT THAT YOU BELIEVE IS COERCED DEBT, PLEASE SEND THE
REQUIRED DOCUMENTS TO (DESIGNATED ADDRESS). AFTER RECEIVING YOUR NOTICE
OF COERCED DEBT, WE WILL INVESTIGATE YOUR CLAIM AND RESPOND IN WRITING
WITHIN 35 BUSINESS DAYS. FOR MORE INFORMATION, PLEASE CALL (DESIGNATED
PHONE NUMBER)."
(B) IF A DEBTOR NOTIFIES A CREDITOR IN WRITING THAT A PARTICULAR DEBT
BEING COLLECTED, OR PORTION THEREOF, IS COERCED DEBT, BUT OMITS INFORMA-
TION UNDER SUBDIVISION ONE OF THIS SECTION, AND IF SUCH CREDITOR DOES
NOT CEASE SUCH COLLECTION ACTIVITIES, SUCH CREDITOR SHALL PROVIDE WRIT-
TEN NOTICE TO SUCH DEBTOR OF THE ADDITIONAL INFORMATION THAT IS
REQUIRED.
3. (A) WITHIN TEN BUSINESS DAYS OF RECEIVING THE INFORMATION UNDER
SUBDIVISION ONE OF THIS SECTION, THE CREDITOR SHALL, IF SUCH CREDITOR
FURNISHES ADVERSE INFORMATION ABOUT THE DEBTOR TO A CONSUMER REPORTING
AGENCY, NOTIFY SUCH CONSUMER REPORTING AGENCY THAT THE ACCOUNT IS
DISPUTED.
(B) WITHIN THIRTY BUSINESS DAYS OF RECEIVING THE INFORMATION UNDER
SUBDIVISION ONE OF THIS SECTION, THE CREDITOR SHALL COMPLETE A REVIEW
CONSIDERING ALL INFORMATION PROVIDED BY THE DEBTOR AND OTHER INFORMATION
AVAILABLE TO SUCH CREDITOR IN SUCH CREDITOR'S FILE. IN CONNECTION WITH
SUCH REVIEW AND COMMUNICATION OF THE OUTCOME OF SUCH REVIEW, THE CREDI-
TOR SHALL:
(I) NEITHER DIRECTLY NOR INDIRECTLY CONTACT THE INDIVIDUAL ACCUSED OF
CAUSING THE COERCED DEBT TO BE INCURRED;
(II) USE ONLY THE CONTACT INFORMATION THE DEBTOR PROVIDES WITH THE
INFORMATION UNDER SUBDIVISION ONE OF THIS SECTION WHEN ATTEMPTING TO
CONTACT SUCH DEBTOR AND SHALL NOT USE ANY OTHER CONTACT INFORMATION,
EVEN IF ASSOCIATED WITH THE ACCOUNT UNDER REVIEW, WHEN ATTEMPTING TO
CONTACT SUCH DEBTOR; AND
(III) NOT DISCLOSE THE DOCUMENTS, INFORMATION, OR CONTACT INFORMATION
THE DEBTOR PROVIDES WITH THE INFORMATION UNDER SUBDIVISION ONE OF THIS
SECTION TO ANY OTHER PERSON, INCLUDING, BUT NOT LIMITED TO, JOINT
ACCOUNT HOLDERS, WITHOUT SUCH DEBTOR'S EXPRESS WRITTEN AUTHORIZATION.
FOR PURPOSES OF THIS SUBPARAGRAPH, SENDING DOCUMENTS, INFORMATION, OR
CONTACT INFORMATION THE DEBTOR PROVIDES UNDER SUBDIVISION ONE OF THIS
SECTION TO A MAILING OR ELECTRONIC MAIL ADDRESS OTHER THAN THE ONE
PROVIDED BY THE DEBTOR CONSTITUTES UNLAWFUL DISCLOSURE TO A THIRD PARTY,
EVEN IF SUCH MAIL OR ELECTRONIC MAIL ADDRESS IS ASSOCIATED WITH THE
ACCOUNT.
(C) WITHIN FIVE BUSINESS DAYS OF COMPLETING THE REVIEW UNDER PARAGRAPH
(B) OF THIS SUBDIVISION, A CREDITOR WHO RECOMMENCES COLLECTION ACTIV-
ITIES BASED ON SUCH REVIEW SHALL NOTIFY THE DEBTOR IN WRITING OF SUCH
CREDITOR'S DETERMINATION AND THE GOOD FAITH BASIS FOR SUCH DETERMI-
NATION, AND SHALL ENCLOSE ALL DOCUMENTS AND INFORMATION UPON WHICH SUCH
CREDITOR BASES ITS DETERMINATION THEREWITH. SUCH WRITTEN NOTICE SHALL
INCLUDE A NOTICE OF THE DEBTOR'S RIGHT TO REQUEST RECONSIDERATION OF
SUCH DETERMINATION TO RECOMMENCE COLLECTION ACTIVITIES UNDER SUBDIVISION
FOUR OF THIS SECTION.
(D) WITHIN FIVE BUSINESS DAYS OF COMPLETING THE REVIEW UNDER PARAGRAPH
(B) OF THIS SUBDIVISION, A CREDITOR WHO CEASES COLLECTION ACTIVITIES
UNDER THIS SECTION AND, BASED ON SUCH REVIEW, DOES NOT RECOMMENCE SUCH
COLLECTION ACTIVITIES, SHALL:
S. 2278--A 5
(I) NOTIFY THE DEBTOR IN WRITING THAT IT IS CEASING COLLECTION ACTIV-
ITIES BASED ON SUCH DEBTOR'S CLAIM OF COERCED DEBT;
(II) CONTACT ANY CONSUMER REPORTING AGENCIES TO WHICH IT FURNISHES
INFORMATION ABOUT THE DEBTOR AND THE PARTICULAR DEBT AND INSTRUCT SUCH
CONSUMER REPORTING AGENCIES TO DELETE SUCH INFORMATION; AND
(III) IF THE CREDITOR IS ALSO A DEBT COLLECTOR OR DEBT COLLECTION
AGENCY, AS DEFINED IN SECTION SIX HUNDRED OF THIS CHAPTER, NOTIFY THE
ORIGINAL CREDITOR THAT IT HAS CEASED COLLECTION ACTIVITIES BECAUSE THE
DEBT WAS FOUND TO BE A COERCED DEBT.
4. A DEBTOR WHO RECEIVES WRITTEN NOTICE UNDER PARAGRAPH (C) OF SUBDI-
VISION THREE OF THIS SECTION THAT THE CREDITOR WILL RECOMMENCE
COLLECTION ACTIVITIES BASED ON SUCH CREDITOR'S DETERMINATION UNDER
SUBDIVISION THREE OF THIS SECTION MAY MAKE A REQUEST TO THE CREDITOR
THAT THE CREDITOR RECONSIDER SUCH DETERMINATION TO RECOMMENCE COLLECTION
ACTIVITIES WITHIN THIRTY DAYS OF THE DATE OF MAILING OF SUCH WRITTEN
DETERMINATION. A DEBTOR REQUESTING RECONSIDERATION OF A CREDITOR'S
DETERMINATION TO RECOMMENCE COLLECTION ACTIVITIES SHALL BE PERMITTED TO
SUBMIT ADDITIONAL ADEQUATE DOCUMENTATION OF COERCED DEBT, AS DEFINED IN
THIS ARTICLE. SUBMITTING A REQUEST FOR RECONSIDERATION OF THE DETERMI-
NATION TO THE CREDITOR SHALL NOT BE A CONDITION TO BRINGING AN ACTION
UNDER SECTION SIX HUNDRED FOUR-CC OF THIS ARTICLE.
5. NO INFERENCE OR PRESUMPTION THAT THE DEBT IS VALID OR INVALID, OR
THAT THE DEBTOR IS LIABLE OR NOT LIABLE FOR SUCH DEBT, SHALL ARISE IF
THE CREDITOR DECIDES AFTER COMPLETING THE REVIEW UNDER SUBDIVISION THREE
OF THIS SECTION TO CEASE OR RECOMMENCE THE DEBT COLLECTION ACTIVITIES.
THE EXERCISE OR NON-EXERCISE OF RIGHTS UNDER THIS SECTION SHALL NOT
CONSTITUTE A WAIVER OF ANY OTHER RIGHT OR DEFENSE OF THE DEBTOR OR DEBT
COLLECTOR.
6. CEASING COLLECTION ACTIVITIES UNDER THIS SECTION SHALL NOT TOLL THE
STATUTE OF LIMITATIONS PERIOD ON ANY ACTION TO COLLECT THE DEBT.
7. IF AT ANY TIME ANY INDIVIDUAL OR ENTITY, INCLUDING, BUT NOT LIMITED
TO THE CREDITOR, SUCH CREDITOR'S ASSIGNOR, OR ANY ASSIGNEE, RECOMMENCES
COLLECTION ACTIVITIES ON THE DEBT AFTER CEASING COLLECTION ACTIVITIES ON
SUCH DEBT BASED ON SUCH CREDITOR'S REVIEW OF SUCH DEBTOR'S NOTICE OF
COERCED DEBT, SUCH DEBTOR MAY SUBMIT A SUBSEQUENT NOTICE OF COERCED
DEBT. A SUBSEQUENT NOTICE OF COERCED DEBT SUBMITTED UNDER THIS SUBDIVI-
SION SHALL BE GOVERNED BY SUBDIVISIONS ONE THROUGH SIX OF THIS SECTION.
8. A DEBTOR INJURED BY A VIOLATION OF THIS SECTION SHALL HAVE A CAUSE
OF ACTION AGAINST THE CREDITOR TO RECOVER STATUTORY DAMAGES OF ONE THOU-
SAND DOLLARS, ACTUAL DAMAGES, IF ANY, AND THE COSTS AND ATTORNEYS' FEES
REASONABLY INCURRED IN BRINGING SUCH ACTION. WHERE A CREDITOR'S
VIOLATION OF THIS SECTION IS DEEMED WILLFUL, A DEBTOR SHALL BE ENTITLED
TO PUNITIVE DAMAGES.
§ 604-CC. COERCED DEBT CAUSE OF ACTION AND AFFIRMATIVE DEFENSE. 1. A
PERSON SHALL NOT CAUSE ANOTHER PERSON TO INCUR A COERCED DEBT. A PERSON
WHO CAUSES ANOTHER PERSON TO INCUR A COERCED DEBT IN VIOLATION OF THIS
SUBDIVISION SHALL BE CIVILLY LIABLE TO THE CREDITOR, AND/OR THE DEBTOR
IN WHOSE NAME SUCH COERCED DEBT WAS INCURRED IF SUCH DEBTOR HAS ALREADY
PAID ALL OR PART OF SUCH COERCED DEBT, FOR THE AMOUNT OF SUCH DEBT, OR
PORTION THEREOF, DETERMINED BY THE COURT TO BE A COERCED DEBT, AS WELL
AS SUCH CREDITOR'S AND/OR DEBTOR'S COSTS AND ATTORNEYS' FEES REASONABLY
INCURRED IN BRINGING THE ACTION. AN ACTION UNDER THIS SUBDIVISION SHALL
BE COMMENCED WITHIN THREE YEARS OF THE LATER OF: (A) THE CREDITOR'S
DETERMINATION THAT ALL OR PART OF SUCH DEBT IS COERCED DEBT; OR (B) A
COURT'S DETERMINATION THAT ALL OR PART OF SUCH DEBT IS COERCED DEBT.
S. 2278--A 6
2. (A) A DEBTOR SHALL HAVE A CAUSE OF ACTION AGAINST A CREDITOR IN ANY
COURT HAVING JURISDICTION TO ISSUE A DECLARATORY JUDGMENT ESTABLISHING
THAT A DEBT OR PORTION OF A DEBT ASSERTED TO BE OWED TO SUCH CREDITOR IS
A COERCED DEBT. NOTWITHSTANDING SECTION ONE THOUSAND ONE OF THE CIVIL
PRACTICE LAW AND RULES, ANY INDIVIDUAL ALLEGED TO HAVE CAUSED SUCH
COERCED DEBT TO BE INCURRED SHALL NOT BE A NECESSARY PARTY TO SUCH
ACTION. SUCH ACTION SHALL NOT BE COMMENCED AND MAINTAINED UNLESS THE
FOLLOWING CONDITIONS ARE SATISFIED:
(I) (1) THE DEBTOR PROVIDES BY FIRST CLASS MAIL WITH CERTIFICATION OF
MAILING, CERTIFIED MAIL, OVERNIGHT DELIVERY, OR OTHER METHOD THAT ALLOWS
FOR CONFIRMATION OF THE DATE OF MAILING, THE NOTICE OF COERCED DEBT OR
SUBSEQUENT NOTICE OF COERCED DEBT UNDER SECTION SIX HUNDRED FOUR-BB OF
THIS ARTICLE, PROVIDED, HOWEVER, THAT RECEIPT OF THE NOTICE OF COERCED
DEBT SHALL NOT BE A CONDITION TO BRINGING SUCH ACTION IF IT IS SENT IN A
PROPERLY ADDRESSED ENVELOPE; AND
(2) THE THIRTY-DAY PERIOD UNDER PARAGRAPH (B) OF SUBDIVISION THREE OF
SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE HAS EXPIRED AND THE DEBTOR
HAS NOT RECEIVED WRITTEN NOTICE THAT COLLECTION ACTIVITIES HAVE CEASED;
OR
(II) THE DEBTOR RECEIVES A WRITTEN DETERMINATION UNDER PARAGRAPH (C)
OF SUBDIVISION THREE OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE THAT
THE PARTICULAR DISPUTED DEBT IS NOT COERCED DEBT.
(B) THE SUBMISSION OF A REQUEST FOR RECONSIDERATION UNDER SUBDIVISION
FOUR OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE OF THE CREDITOR'S
DECISION TO RECOMMENCE DEBT COLLECTION ACTIVITIES BASED ON SUCH CREDI-
TOR'S REVIEW OF THE DEBTOR'S NOTICE OF COERCED DEBT IS NOT A CONDITION
TO COMMENCING AN ACTION UNDER THIS SUBDIVISION.
3. IN AN ACTION UNDER SUBDIVISION TWO OF THIS SECTION, A DEBTOR SHALL
PLEAD THE ALLEGATIONS OF COERCED DEBT WITH PARTICULARITY AND SHALL
ATTACH THE DOCUMENTS PROVIDED TO THE CREDITOR PURSUANT TO SUBDIVISION
ONE OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE TO ANY COMPLAINT.
4. A DEBTOR WHO ESTABLISHES BY A PREPONDERANCE OF THE EVIDENCE IN AN
ACTION PURSUANT TO SUBDIVISION TWO OF THIS SECTION THAT A DEBT OR
PORTION OF A DEBT ASSERTED TO BE OWED TO THE CREDITOR IS COERCED DEBT
SHALL BE ENTITLED TO THE FOLLOWING RELIEF:
(A) A DECLARATORY JUDGMENT STATING THAT THE DEBT OR PORTION THEREOF IS
COERCED DEBT AND THAT THE ALLEGED DEBTOR SHALL NOT BE LIABLE FOR SUCH
COERCED DEBT;
(B) AN ORDER ENJOINING OR RESTRAINING THE CREDITOR FROM HOLDING OR
ATTEMPTING TO HOLD THE DEBTOR PERSONALLY LIABLE FOR THE COERCED DEBT OR
ATTEMPTING TO OBTAIN OR ENFORCE ANY JUDGMENT THEREON AGAINST SUCH DEBTOR
AND ENJOINING AND RESTRAINING ALL FUTURE COLLECTION ACTIVITIES WITH
RESPECT TO SUCH DEBT;
(C) AN ORDER DISMISSING ANY OTHER CAUSE OF ACTION BROUGHT BY THE CRED-
ITOR TO ENFORCE OR COLLECT THE COERCED DEBT FROM THE DEBTOR;
(D) IF THE CREDITOR HAS FURNISHED ADVERSE INFORMATION TO A CONSUMER
REPORTING AGENCY WITH RESPECT TO SUCH COERCED DEBT, AN ORDER DIRECTING
THE CREDITOR TO NOTIFY SUCH AGENCY TO DELETE ALL SUCH ADVERSE INFORMA-
TION; AND
(E) THE COSTS AND ATTORNEYS' FEES REASONABLY INCURRED IN BRINGING SUCH
ACTION.
5. IN ANY ACTION BY A CREDITOR AGAINST A DEBTOR TO COLLECT A DEBT, IT
SHALL BE AN AFFIRMATIVE DEFENSE TO SUCH ACTION THAT ALL OR A PORTION OF
THE DEBT IS COERCED DEBT. PROVIDING NOTICE TO THE CREDITOR UNDER
SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE SHALL NOT BE A PREREQUISITE
TO ASSERTING SUCH DEFENSE; PROVIDED, HOWEVER, THE DOCUMENTS DESCRIBED IN
S. 2278--A 7
SUBDIVISION ONE OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE SHALL BE
ANNEXED TO THE DEBTOR'S ANSWER. A DEBTOR WHO PREVAILS ON AN AFFIRMATIVE
DEFENSE OF COERCED DEBT SHALL BE ENTITLED TO THE COSTS AND ATTORNEYS'
FEES REASONABLY INCURRED IN DEFENDING AGAINST THE ACTION. NOTWITHSTAND-
ING SECTION ONE THOUSAND ONE OF THE CIVIL PRACTICE LAW AND RULES, ANY
INDIVIDUAL ALLEGED TO HAVE CAUSED SUCH COERCED DEBT TO BE INCURRED SHALL
NOT BE OR BECOME A NECESSARY PARTY TO SUCH ACTION.
6. AN ACTION PURSUANT TO SUBDIVISION TWO OF THIS SECTION SHALL BE
COMMENCED WITHIN THREE YEARS AFTER THE DATE ON WHICH THE DEBTOR PROVIDED
THE NOTICE OF COERCED DEBT PURSUANT TO SECTION SIX HUNDRED FOUR-BB OF
THIS ARTICLE TO THE CREDITOR; PROVIDED, HOWEVER, THAT IF SUCH CREDITOR,
ITS ASSIGNOR, OR ANY ASSIGNEE RECOMMENCES COLLECTION ACTIVITIES ON THE
DEBT AFTER CEASING COLLECTION ACTIVITIES ON SUCH DEBT BASED ON SUCH
CREDITOR'S REVIEW OF THE DEBTOR'S CLAIM OF COERCED DEBT, SUCH DEBTOR
SHALL HAVE THE RIGHT TO FILE A SUBSEQUENT NOTICE OF COERCED DEBT PURSU-
ANT TO SUBDIVISION SEVEN OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE
AND THE STATUTE OF LIMITATIONS SHALL COMMENCE ON THE DATE ON WHICH SUCH
DEBTOR PROVIDED SUCH SUBSEQUENT NOTICE OF COERCED DEBT.
7. IF REQUESTED BY THE DEBTOR, THE COURT PRESIDING OVER ANY ACTION IN
WHICH COERCED DEBT IS RAISED AS A CLAIM OR AFFIRMATIVE DEFENSE SHALL
TAKE APPROPRIATE STEPS NECESSARY TO PREVENT ABUSE OF SUCH DEBTOR OR AN
IMMEDIATE FAMILY MEMBER OF SUCH DEBTOR, INCLUDING BUT NOT LIMITED TO THE
SEALING OF COURT RECORDS, THE REDACTION OF SUCH DEBTOR'S OR THEIR IMME-
DIATE FAMILY MEMBER'S PERSONAL INFORMATION, AND/OR DIRECTING THAT ANY
DISPOSITION OR HEARING BE HELD REMOTELY.
8. THE PROVISIONS OF THIS ARTICLE SHALL NOT BE CONSTRUED SO AS TO
PREVENT A CREDITOR FROM ENFORCING ANY CLAIM OR COLLECTING JUDGMENT ARIS-
ING OUT OF A LAWFUL DEBT OR PORTION THEREOF FROM ANY OTHER PERSON OR
ENTITY OTHER THAN THE COERCED DEBTOR.
9. FOR DEBTS SECURED BY REAL OR PERSONAL PROPERTY, THE PRIVATE CAUSE
OF ACTION AND AFFIRMATIVE DEFENSE AUTHORIZED BY THIS SECTION SHALL
AFFECT ONLY THE DEBTOR'S LIABILITY FOR ANY DEFICIENCY AFTER THE FORECLO-
SURE, REPOSSESSION, OR SURRENDER AND DISPOSITION OF THE SUBJECT COLLAT-
ERAL.
10. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICA-
TION MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
THE STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION TO ISSUE
AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE
DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS. IF IT
SHALL APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE THAT THE
DEFENDANT HAS, IN FACT, VIOLATED THIS SECTION, AN INJUNCTION MAY BE
ISSUED BY SUCH COURT OR JUSTICE, ENJOINING OR RESTRAINING ANY VIOLATION,
WITHOUT REQUIRING PROOF THAT ANY PERSON HAS, IN FACT, BEEN INJURED OR
DAMAGED THEREBY. IN ANY SUCH PROCEEDING THE COURT MAY MAKE ALLOWANCES TO
THE ATTORNEY GENERAL AS PROVIDED IN SECTION EIGHTY-THREE HUNDRED THREE
OF THE CIVIL PRACTICE LAW AND RULES, AND MAY MAKE DIRECT RESTITUTION. IN
CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS
AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE RELEVANT FACTS
AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND
RULES. WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS
SECTION HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY FOR EACH
VIOLATION UP TO FIVE THOUSAND DOLLARS.
§ 2. This act shall take effect on the ninetieth day after it shall
have become a law.
