Bill Text: NY S06751 | 2019-2020 | General Assembly | Introduced

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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 3-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CONSUMER PROTECTION [S06751 Detail]

Download: New_York-2019-S06751-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6751

                               2019-2020 Regular Sessions

                    IN SENATE

                                   September 25, 2019
                                       ___________

        Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        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