James Cracks Down: New Law Shields NYers from Predatory Scams

NEW YORK – New York Attorney General Letitia James is delivering a much-needed punch to predatory lenders, abusive debt collectors, and outright scammers. The state legislature finally passed the Fostering Affordability and Integrity through Reasonable Business Practices Act – dubbed the FAIR Business Practices Act – updating the state’s antiquated consumer protection law, General Business Law §349, for the first time in nearly half a century. This isn’t just a facelift; it’s a full overhaul designed to stop the bleeding from schemes that have been draining the wallets of honest New Yorkers for decades.

The law, sponsored by Senator Leroy Comrie and Assemblymember Micah Lasher, directly addresses a flood of complaints hitting James’ office. “Too many New Yorkers are being taken advantage of by mortgage servicers charging unnecessary high fees, debt collectors stealing Social Security benefits, and health insurance companies with unfair billing practices,” James stated bluntly. The old law, passed back in 1970, only prohibited deceptive acts, leaving a gaping hole for companies to engage in plainly unfair and abusive practices. This new legislation closes that loophole, giving the AG’s office teeth to go after bad actors.

Senator Comrie hammered home the point that the legal landscape has drastically changed. “For too long, New York’s consumer protection laws have lagged behind the fast-moving tactics used to exploit our communities,” he said. “By updating General Business Law §349, we are giving consumers and small businesses the tools they need to fight back against predatory practices.” Specifically, the FAIR Business Practices Act targets lenders – auto, mortgage, and student loan – who push borrowers into higher-cost loans under false pretenses. It also aims to curb hidden fees, unfair healthcare billing, and exploitation of those with limited English proficiency.

Assemblymember Lasher didn’t mince words about the decades of inaction. “Since the general business law was enacted in 1970, our entire society has grown dramatically more complicated, and we have seen the complete revolution of commerce,” he explained. “In all that time, we have done nothing to modernize our laws to protect New Yorkers from being taken advantage of.” The Act promises to crack down on practices like car dealerships holding customer IDs hostage until a deal is finalized and tacking on unwanted warranties, and nursing homes aggressively pursuing relatives of the deceased for bills.

The timing of the passage is particularly pointed, coming as the federal government increasingly retreats from consumer protection efforts. James didn’t hesitate to call out the federal abdication of responsibility. “I applaud Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie for their support in passing this legislation at a time when the federal government is abandoning its responsibility to protect consumers and small businesses,” she said. This law signals a clear message: New York won’t stand idly by while its citizens are fleeced.

While the law’s full impact remains to be seen, the FAIR Business Practices Act represents a significant step towards leveling the playing field for New Yorkers. The AG’s office is now equipped to pursue a wider range of predatory schemes, and the message to unscrupulous businesses is clear: the days of easy pickings are over. Expect James to waste no time putting these new powers to work.

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