NY Enacts Amendments Covering Collection of Family Member Debts

New York has enacted S3491A, amending the state’s general business law concerning disclosures by principal creditors and debt collection agencies of the legal obligations of a deceased debtor’s family and household members, effective March 29, 2019.

The bill:

• Amends the general business law by requiring that no principal creditors and/or debt collection agencies shall make any representation that a person is required to pay the debt of a family member in a way that contravenes with the FDCPA;
• Prohibits principal creditors and/or debt collection agencies from making any misrepresentations about the family member’s obligation to pay such debts; and
• Defines “debt collection agency” as “a person, firm or corporation engaged in business, the principal purpose of which is to regularly collect or attempt to collect debts: (a) owed or due or asserted to be owed or due to another; or (b) obtained by, or assigned to, such person, firm or corporation, that are in default when obtained or acquired by such person, firm or corporation.”