Bill Text: NY A08603 | 2019-2020 | General Assembly | Introduced

New York Assembly Bill 8603 (Prior Session Legislation)

Introduced

Bill Title: Relates to debt relief from predatory debt collectors; authorizes a debtor to bring an action or counterclaim against a principal creditor who employs deceptive acts or practices in collecting a debt from the debtor.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to judiciary [A08603 Detail]

Download: New_York-2019-A08603-Introduced.html




                STATE OF NEW YORK
        ________________________________________________________________________

                                          8603

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                     October 2, 2019
                                       ___________

        Introduced by M. of A. KIM -- read once and referred to the Committee on
          Judiciary

        AN  ACT  to  amend  the general business law, in relation to debt relief
          from predatory debt collectors

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

     1    Section  1.  Section  602  of  the  general business law is amended by
     2  adding a new subdivision 4 to read as follows:
     3    4. In addition to the right of action granted to the attorney  general
     4  pursuant  to  this  section and section three hundred forty-nine of this
     5  chapter, if a principal creditor employs any deceptive acts or practices
     6  in collecting a debt from a debtor, or violates one or  more  provisions
     7  of  section  six hundred one of this article in collecting a debt from a
     8  debtor, such debtor may bring an action or counterclaim and may  thereby
     9  extinguish the debt allegedly owed, in whole or in part. The court shall
    10  extinguish  the  debt in its entirety if the debtor has assets less than
    11  that of the principal creditor who has employed deceptive acts or  prac-
    12  tices, provided that the debtor has not committed a criminal fraud under
    13  the  penal  law. The court shall place significant weight on the state's
    14  policy of deterring deceptive acts and practices in connection with debt
    15  collection, as well as the state's interest in providing meaningful debt
    16  relief to its citizens. The court may award reasonable  attorney's  fees
    17  to a prevailing debtor.
    18    § 2. This act shall take effect immediately.



         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13564-01-9