BILL NUMBER: S5546A
SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:
An act to amend the civil practice law and rules, the New York city
civil court act, the judiciary law, the uniform city court act, the
uniform district court act and the uniform justice court act, in
relation to redefining consumer credit transaction to consumer debt
 
SUMMARY OF PROVISIONS:
The bill amends the civil practice law and rules, the civil court act,
the judiciary law, and the uniform city court act, by adding a new defi-
nition of "consumer debt" and replacing "consumer credit transaction"
with "consumer debt."
 
JUSTIFICATION:
New York law treats the collection of consumer debts differently, creat-
ing confusion not only for consumers, but also courts and creditors. For
example, New Yorkers holding debts arising from consumer credit trans-
actions have protections under The Consumer Credit Fairness Act of 2021
that are unavailable to debtors holding other forms of common consumer
debts.
This legislation reduces confusion and enhances consumer protections by
adding a definition of "consumer debt" that subsumes consumer credit
transaction, and includes other types of debts such as medical debt,
rent arrears, or tuition debt. Consumers sued by hospitals, nursing
homes, landlords, colleges, and other creditors face the same challenges
and obstacles that exist in cases seeking to collect credit card debt;
they should be given the same protections.
 
LEGISLATIVE HISTORY:
2023-24: A 5368/ S 4750 - died in judiciary / DIED IN JUDICIARY
 
FISCAL IMPLICATIONS:
unknown
 
EFFECTIVE DATE:
90 days after becoming law

Statutes affected:
S5546: 105 civil practice law, 214-i civil practice law, 503 civil practice law, 601 civil practice law, 3012 civil practice law, 3213 civil practice law, 5004 civil practice law, 7516 civil practice law, 212 judiciary law, 212(2) judiciary law
S5546A: 105 civil practice law, 214-i civil practice law, 503 civil practice law, 601 civil practice law, 3012 civil practice law, 3213 civil practice law, 5004 civil practice law, 7516 civil practice law, 212 judiciary law, 212(2) judiciary law