New York S 4271: Relates to licensing consumer debt collectors

Bill Text

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S04271 Summary:

BILL NOS04271A

&nbsp

SAME ASNo Same As

&nbsp

SPONSORKAVANAGH

&nbsp

COSPNSRJACKSON

&nbsp

MLTSPNSR

&nbsp

Add Art 7 §§295 - 306, amd §§36 & 44, Bank L; amd §3218, add §5022, CPLR

&nbsp

Relates to licensing consumer debt collectors; sets minimum standards and regulations; establishes penalties for violations.

Go to top S04271 Actions:

BILL NOS04271A

&nbsp

02/03/2025REFERRED TO BANKS

05/05/2025REPORTED AND COMMITTED TO FINANCE

05/28/20251ST REPORT CAL.1352

05/29/20252ND REPORT CAL.

06/04/2025ADVANCED TO THIRD READING 

06/11/2025PASSED SENATE

06/11/2025DELIVERED TO ASSEMBLY

06/11/2025referred to banks

01/07/2026died in assembly

01/07/2026returned to senate

01/07/2026REFERRED TO BANKS

04/28/2026REPORTED AND COMMITTED TO FINANCE

06/01/2026AMEND AND RECOMMIT TO FINANCE

06/01/2026PRINT NUMBER 4271A

Go to topS04271 Committee&nbspVotes:

Go to topS04271 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04271 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4271--A

 2025-2026 Regular Sessions

 IN SENATE

 February 3, 2025
 ___________

 Introduced by Sens. KAVANAGH, JACKSON -- read twice and ordered printed,
 and when printed to be committed to the Committee on Banks -- recom-
 mitted to the Committee on Banks in accordance with Senate Rule 6,
 sec. 8 -- reported favorably from said committee and committed to the
 Committee on Finance -- committee discharged, bill amended, ordered
 reprinted as amended and recommitted to said committee

 AN ACT to amend the banking law and the civil practice law and rules, in
 relation to licensing consumer debt collectors

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

 1 Section 1. The banking law is amended by adding a new article 7 to
 2 read as follows:
 3 ARTICLE VII
 4 LICENSED CONSUMER DEBT COLLECTORS
 5 Section 295. Definitions.
 6 296. License required; entities exempt.
 7 297. Application for license; fees.
 8 298. Surety bond required.
 9 299. Examination; books and records; reports.
 10 300. Prohibited acts.
 11 301. Regulations; minimum standards.
 12 302. Application for acquisition of control of a consumer debt
 13 collector.
 14 303. Suspension and revocation.
 15 304. Bad actors.
 16 305. Penalties.
 17 306. Preemption of local law.
 18 § 295. Definitions. As used in this article:
 19 1. "Affiliated company" means a consumer debt collector operating
 20 under the control of a licensee, provided that the affiliated company
 21 shares common facilities, management, and operations with the licensee

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD06314-03-6

 S. 4271--A 2

 1 and the affiliated company does not engage in any collection activities
 2 other than debt buying or debt collection for the licensee.
 3 2. "Applicant" means a consumer debt collector who has filed an appli-
 4 cation to obtain a license under this article.
 5 3. "Attorney-at-law" and "law firm" means any attorney-at-law or law
 6 firm retained by a client for the purpose of litigation and representing
 7 such client through activities that may only be performed by a licensed
 8 attorney, including acting pursuant to law or regulation by contacting a
 9 consumer debtor in the course of the representation regarding antic-
 10 ipated, pending, or previous litigation.
 11 4. "Communication" and "communicate" means the conveying of informa-
 12 tion regarding a consumer debt directly or indirectly to any person
 13 through any medium.
 14 5. "Consumer debt" means any obligation of a natural person for the
 15 payment of money or its equivalent which arises out of a transaction
 16 which was primarily for personal, family, or household purposes. The
 17 term includes an obligation of a natural person who is a co-maker,
 18 endorser, guarantor or surety of such a transaction.
 19 6. "Consumer debtor" means any natural person who owes or is asserted
 20 to owe any consumer debt.
 21 7. "Consumer debt collector" means any person who engages in a busi-
 22 ness, a principal purpose of which is consumer debt buying, or regularly
 23 collecting or attempting to collect, directly or in