Vote Smart's Synopsis:

Vote to pass a bill that amends New York's coerced debt law to provide corrections and exemptions.

Highlights:

• Amends the definition of “coerced debt” to mean a debt arising out of a transaction primarily for personal, family, or household purposes that was incurred because of duress, intimidation, threat, force, coercion, manipulation, or undue influence within the context of the following (Sec. 1):

• Intimate relationships;

• Relationships between family or household members;

• Relationships between victims of human trafficking and traffickers;

• Relationships between children and their parents or caretakers; or

• The elderly or individuals eligible for protective services and their caregivers.

• Authorizes a creditor to remedy an injury claimed by a debtor within fifteen days to avoid civil action (Sec. 1).

• Exempts any communication between a creditor or debtor that is required by state or federal law or regulation from the definition of collection activities (Sec. 1).

• Exempts certain debts secured by real property from regulation under this section (Sec. 1).

• Exempts certain debts secured by personal property from regulation under this section (Sec. 1).

• Establishes liability of an individual who coerces another individual into a debt, with liability to either the creditor or the debtor depending on the amount of repayment that has already been made (Sec. 1).

• Establishes a statute of limitations of three years for action under this section related to a determination of coerced debt (Sec. 1).

• Extends the effective date of the 2025 Act on coerced debt by 90 days (Sec. 2).

• Specifies that this Act takes effect immediately upon passage (Sec. 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends New York's coerced debt law to provide corrections and exemptions.

Highlights:

• Amends the definition of “coerced debt” to mean a debt arising out of a transaction primarily for personal, family, or household purposes that was incurred because of duress, intimidation, threat, force, coercion, manipulation, or undue influence within the context of the following (Sec. 1):

• Intimate relationships;

• Relationships between family or household members;

• Relationships between victims of human trafficking and traffickers;

• Relationships between children and their parents or caretakers; or

• The elderly or individuals eligible for protective services and their caregivers.

• Authorizes a creditor to remedy an injury claimed by a debtor within fifteen days to avoid civil action (Sec. 1).

• Exempts any communication between a creditor or debtor that is required by state or federal law or regulation from the definition of collection activities (Sec. 1).

• Exempts certain debts secured by real property from regulation under this section (Sec. 1).

• Exempts certain debts secured by personal property from regulation under this section (Sec. 1).

• Establishes liability of an individual who coerces another individual into a debt, with liability to either the creditor or the debtor depending on the amount of repayment that has already been made (Sec. 1).

• Establishes a statute of limitations of three years for action under this section related to a determination of coerced debt (Sec. 1).

• Extends the effective date of the 2025 Act on coerced debt by 90 days (Sec. 2).

• Specifies that this Act takes effect immediately upon passage (Sec. 3).

Full Bill Text