BILL NUMBER: S1353B
SPONSOR: CLEARE
 
TITLE OF BILL:
An act to amend the general business law, in relation to establishing a
right of action for claims arising out of coerced debts
 
PURPOSE:
This legislation will protect survivors of domestic violence and others
who have become victims of economic abuse by providing them with a right
of action.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends the general business law by adding a new article
29-1-IHH.
Section two sets forth the effective date.
 
JUSTIFICATION:
According to the National Coalition Against Domestic Violence; more than
90% of domestic violence survivors have suffered economic abuse.
Economic abuse often involves coerced debt, whereby an abuser. threat-
ens, intimidates or otherwise forces a partner to incur debts against
their will. Coerced debt may include covertly applying for credit cards
or loans in a victim's name or forcing the victim to submit such appli-
cations, refinancing a home mortgage or car loan or any other action
that would force a victim to engage in a credit-related transaction.
When a person falls victim to coerced debt, it can have devastating
impacts on their credit rating and make it increasingly difficult for
them to obtain loans, various forms of insurance, housing and other
services in the future. Leaving a domestic violence situation is an
incredibly unnerving experience, often requiring a person to relocate,
secure new housing and employment, navigate legal processes and more. No
survivor of domestic violence should also have their finances impacted
for years to come due to debt they were forced to incur.
This legislation would ensure that survivors are not held liable for
such coerced debt by providing the debtor an opportunity to establish
that the debt in question was coerced. Upon a determination that such
debt was coerced; the creditor could be required to cease collection
activities and not hold the victim personally liable for the debt.
 
LEGISLATIVE HISTORY:
2022-23: A.1309-B - Advanced to Third Reading; S.2278-A - Passed Senate
2021-22: A.10667 - Referred to Consumer Affairs and Protection
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
90 days.