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NY A10667
Bill
Status
8/12/2022
Primary Sponsor
Linda Rosenthal
Click for details
AI Summary
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Prohibits creditors from claiming, enforcing, or asserting rights to any debt known or reasonably believed to be a "coerced debt" incurred through fraud, duress, intimidation, threat, force, identity theft, or exploitation of personal information.
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Grants alleged debtors a right of action for declaratory judgment invalidating the coerced debt, injunctive relief stopping collection activities, dismissal of creditor lawsuits, and orders requiring deletion of adverse credit reporting information.
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Requires alleged debtors to provide written notice of intention to file an action at least 30 days in advance, supported by documentation such as police reports, FTC ID theft reports, orders of protection, or professional third-party documentation describing the coercion.
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Imposes a four-year statute of limitations for actions, with courts maintaining exclusive continuing jurisdiction for 10 years to allow joinder of additional coerced debt claims against the same creditor.
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Exempts debts secured by real property and liens on personal property from the private right of action; allows creditors to enforce claims against other persons and to recover costs and attorney's fees if an action is found frivolous.
Legislative Description
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 declaratory and injunctive relief against creditors for violations.
Last Action
referred to consumer affairs and protection
8/12/2022