S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2278--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced by Sens. CLEARE, COMRIE, HOYLMAN-SIGAL, SALAZAR -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on  Consumer  Protection  --  recommitted to the Committee on Consumer
   Protection in accordance with Senate  Rule  6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT to amend the general business law, in relation to establishing a
   right of action for claims arising out of coerced debts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 29-HHH to read as follows:
                               ARTICLE 29-HHH
                      ACTIONS INVOLVING COERCED DEBTS
 SECTION 604-AA. DEFINITIONS.
         604-BB. NOTICE OF COERCED DEBT.
         604-CC. COERCED DEBT CAUSE OF ACTION AND AFFIRMATIVE DEFENSE.
   §  604-AA.  DEFINITIONS.  AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "ACTION" MEANS ANY CIVIL JUDICIAL PROCEEDING AS DEFINED IN  SECTION
 ONE HUNDRED FIVE OF THE CIVIL PRACTICE LAW AND RULES.
   2.  "ADEQUATE  DOCUMENTATION OF COERCED DEBT" MEANS DOCUMENTATION THAT
 IDENTIFIES A PARTICULAR DEBT, OR A PORTION  THEREOF,  AS  COERCED  DEBT,
 DESCRIBES  THE CIRCUMSTANCES UNDER WHICH SUCH COERCED DEBT WAS INCURRED,
 AND TAKES THE FORM OF ANY OF THE FOLLOWING:
   (A) A POLICE REPORT;
   (B) A FEDERAL TRADE COMMISSION IDENTITY THEFT REPORT THAT IDENTIFIES A
 PARTICULAR DEBT, OR PORTION THEREOF, AS A COERCED DEBT;
   (C) AN ORDER FROM A COURT  OF  COMPETENT  JURISDICTION  SETTING  FORTH
 FINDINGS OF COERCED DEBT; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05065-05-4
 S. 2278--A                          2
              

 
   (D)  A  WRITTEN VERIFICATION, FROM A QUALIFIED THIRD PARTY TO WHOM THE
 DEBTOR REPORTED THE COERCED DEBT, WHICH SHALL BE SATISFIED BY ANY  SWORN
 OR NOTARIZED STATEMENT INCLUDING THE REQUIRED INFORMATION AS WELL AS THE
 NAME,  MAILING ADDRESS, AND EMAIL ADDRESS OR TELEPHONE NUMBER, AS APPLI-
 CABLE, OF SUCH QUALIFIED THIRD PARTY'S EMPLOYER OR, IF SELF-EMPLOYED, OF
 SUCH QUALIFIED THIRD PARTY.
   3.  "COERCED  DEBT", IN THE CONTEXT OF ECONOMIC ABUSE, MEANS DEBT THAT
 WAS INCURRED AS A RESULT OF FRAUD, DURESS, INTIMIDATION, THREAT,  FORCE,
 COERCION,  MANIPULATION,  UNDUE INFLUENCE, THE NON-CONSENSUAL USE OF THE
 DEBTOR'S PERSONAL INFORMATION, OR  SIMILAR  ECONOMIC  ABUSE  PERPETRATED
 AGAINST A DEBTOR.
   4.  "CREDITOR"  MEANS ANY PERSON, FIRM, CORPORATION OR ORGANIZATION TO
 WHOM A DEBT IS OWED, DUE, OR ASSERTED TO BE DUE OR OWED, OR ANY ASSIGNEE
 FOR VALUE OF SAID PERSON, FIRM, CORPORATION OR  ORGANIZATION,  INCLUDING
 ANY  DEBT  COLLECTION AGENCY OR DEBT COLLECTOR AS DEFINED BY SECTION SIX
 HUNDRED OF THIS CHAPTER; PROVIDED, HOWEVER, THAT  "CREDITOR"  SHALL  NOT
 INCLUDE  A  PERSON TO WHOM A DEBT IS ALLEGEDLY OWED, DUE, OR ASSERTED TO
 BE DUE OR OWED, WHERE THE PERSON ASSERTING SUCH CLAIM CAUSED THE DEBT TO
 ARISE BY ENGAGING IN ONE OR MORE ACTS  OF  COERCION,  AS  IDENTIFIED  IN
 SUBDIVISION THREE OF THIS SECTION, AGAINST THE DEBTOR.
   5.  "DEBT" MEANS ANY OBLIGATION OR ALLEGED OBLIGATION OF A CONSUMER TO
 PAY MONEY ARISING OUT OF A TRANSACTION IN  WHICH  THE  MONEY,  PROPERTY,
 INSURANCE,  RENTAL  ARREARS OWED FOR USE AND OCCUPANCY OF A DWELLING, OR
 SERVICES WHICH ARE THE SUBJECT OF SUCH  TRANSACTION  ARE  PRIMARILY  FOR
 PERSONAL,  FAMILY, OR HOUSEHOLD PURPOSES, WHETHER OR NOT SUCH OBLIGATION
 HAS BEEN REDUCED TO A JUDGMENT.
   6. "DEBTOR" MEANS ANY NATURAL PERSON WHO OWES OR WHO  IS  ASSERTED  TO
 OWE A DEBT.
   7.  "ECONOMIC  ABUSE",  IN  THE  CONTEXT  OF INTIMATE RELATIONSHIPS OR
 RELATIONSHIPS BETWEEN FAMILY OR HOUSEHOLD MEMBERS AS DEFINED BY  SECTION
 FOUR  HUNDRED  FIFTY-NINE-A  OF  THE  SOCIAL SERVICES LAW, RELATIONSHIPS
 BETWEEN VICTIMS OF HUMAN TRAFFICKING AND TRAFFICKERS,  OR  RELATIONSHIPS
 BETWEEN  CHILDREN,  THE  ELDERLY, OR INDIVIDUALS ELIGIBLE FOR PROTECTIVE
 SERVICES UNDER SUBDIVISION ONE OF SECTION FOUR HUNDRED SEVENTY-THREE  OF
 THE  SOCIAL  SERVICES  LAW, AND THEIR CAREGIVERS, MEANS BEHAVIOR THAT IS
 COERCIVE, DECEPTIVE, MANIPULATIVE, OR  THAT    CONTROLS,  RESTRAINS,  OR
 SABOTAGES  A  PERSON'S  ABILITY  TO  ACQUIRE,  USE, OR MAINTAIN ECONOMIC
 RESOURCES TO WHICH THEY ARE ENTITLED, INCLUDING BUT NOT LIMITED TO USING
 COERCION, FRAUD, OR MANIPULATION TO:
   (A) RESTRICT A PERSON'S ACCESS TO MONEY, ASSETS, CREDIT, OR  FINANCIAL
 INFORMATION;
   (B)  UNFAIRLY USE A PERSON'S PERSONAL INFORMATION OR PERSONAL ECONOMIC
 RESOURCES, INCLUDING MONEY, ASSETS, AND/OR CREDIT; OR
   (C) EXERT UNDUE INFLUENCE  OVER  A  PERSON'S  FINANCIAL  AND  ECONOMIC
 BEHAVIOR  OR  DECISIONS, INCLUDING BUT NOT LIMITED TO FORCING DEFAULT ON
 JOINT OR OTHER FINANCIAL OBLIGATIONS,  EXPLOITING  POWERS  OF  ATTORNEY,
 GUARDIANSHIP, OR CONSERVATORSHIP, OR FAILING OR NEGLECTING TO ACT IN THE
 BEST INTERESTS OF A PERSON TO WHOM ONE HAS A FIDUCIARY DUTY.
   8.  "PERSONAL  INFORMATION"  INCLUDES,  BUT IS NOT LIMITED TO, A NAME,
 ADDRESS, TELEPHONE OR MOBILE PHONE NUMBER, DRIVER REGISTRATION NUMBER OR
 NON-DRIVER IDENTIFICATION CARD NUMBER,  SOCIAL  SECURITY  NUMBER,  EMAIL
 ADDRESS,  SOCIAL  MEDIA  PROFILE  OR  SCREEN  NAME, PLACE OF EMPLOYMENT,
 EMPLOYEE IDENTIFICATION NUMBER, MOTHER'S MAIDEN NAME, FINANCIAL SERVICES
 ACCOUNT NUMBER OR CODE, SAVINGS ACCOUNT NUMBER OR CODE, CHECKING ACCOUNT
 NUMBER OR CODE, DEBIT OR CREDIT CARD NUMBER OR  CODE,  AUTOMATED  TELLER
 MACHINE NUMBER OR CODE, ELECTRONIC SERIAL NUMBER, ANY PERSONAL IDENTIFI-
 S. 2278--A                          3
 
 CATION  NUMBER  OR  PASSWORD  OF A DEBTOR, AND A DEBTOR'S PERSONAL DOCU-
 MENTS, INCLUDING, BUT NOT LIMITED TO, SUCH DEBTOR'S DRIVER'S LICENSE  OR
 NON-DRIVER IDENTIFICATION CARD, PASSPORT, PERMANENT RESIDENT CARD, VISA,
 BIRTH  CERTIFICATE,  SOCIAL  SECURITY  CARD,  AND  ANY COPIES THEREOF OR
 INFORMATION CONTAINED THEREIN.  "PERSONAL IDENTIFICATION NUMBER OR PASS-
 WORD", AS USED IN THIS SUBDIVISION, MEANS  ANY  NUMBER  OR  ALPHANUMERIC
 CODE  WHICH  MAY BE USED ALONE OR IN CONJUNCTION WITH ANY OTHER INFORMA-
 TION TO ASSUME THE  IDENTITY  OF  ANOTHER  PERSON  OR  ACCESS  FINANCIAL
 RESOURCES OR CREDIT INFORMATION OF ANOTHER PERSON.
   9.  "PLEADING"  MEANS  ANY  COMPLAINT,  PETITION, COUNTERCLAIM, CROSS-
 CLAIM, INTERPLEADER COMPLAINT,  THIRD-PARTY  COMPLAINT  OR  ANY  SIMILAR
 PAPERS ASSERTING A CLAIM AND DEMAND FOR RELIEF REQUIRED TO BE FILED WITH
 THE  COURT PURSUANT TO RULE TWENTY-ONE HUNDRED TWO OF THE CIVIL PRACTICE
 LAW AND RULES, THE RULES OF THE CHIEF ADMINISTRATOR OF  THE  COURTS,  OR
 ANY LOCAL RULE OR PRACTICE ESTABLISHED BY THE COURT.
   10. "QUALIFIED THIRD PARTY" MEANS ANY (A) LAW ENFORCEMENT OFFICER; (B)
 EMPLOYEE OF A COURT OF THE STATE; (C) ATTORNEY, PHYSICIAN, PSYCHIATRIST,
 PSYCHOLOGIST,  SOCIAL  WORKER,  REGISTERED NURSE, THERAPIST, OR CLINICAL
 PROFESSIONAL COUNSELOR LICENSED TO PRACTICE IN  ANY  STATE;  (D)  PERSON
 EMPLOYED  BY  OR WORKING ON BEHALF OF A GOVERNMENT OR NON-PROFIT OFFICE,
 AGENCY, OR SERVICE THAT ADVISES OR PROVIDES SERVICES TO PERSONS  REGARD-
 ING  DOMESTIC  VIOLENCE, FAMILY VIOLENCE, HUMAN TRAFFICKING, OR ABUSE OF
 CHILDREN, THE ELDERLY, OR DEPENDENT ADULTS; OR (E) MEMBER OF THE  CLERGY
 OF A CHURCH OR RELIGIOUS SOCIETY OR DENOMINATION.
   §  604-BB. NOTICE OF COERCED DEBT. 1. UPON RECEIPT OF THE FOLLOWING, A
 CREDITOR SHALL CEASE  COLLECTION  ACTIVITIES  UNTIL  COMPLETION  OF  THE
 REVIEW UNDER SUBDIVISION THREE OF THIS SECTION:
   (A) ADEQUATE DOCUMENTATION OF COERCED DEBT; AND
   (B)  THE DEBTOR'S STATEMENT THAT A PARTICULAR DEBT BEING COLLECTED, OR
 PORTION THEREOF, IS COERCED DEBT.
   2. (A) IF A DEBTOR NOTIFIES A CREDITOR BY ANY METHOD  OR  CIRCUMSTANCE
 THAT  MAY CONSTITUTE ECONOMIC ABUSE OR COERCED DEBT, SUCH CREDITOR SHALL
 PROVIDE WRITTEN NOTICE TO SUCH DEBTOR THAT INCLUDES THE FOLLOWING TEXT:
   "UNDER NEW YORK GENERAL BUSINESS LAW 604-BB, YOU  HAVE  THE  RIGHT  TO
 DISPUTE  DEBT THAT YOU BELIEVE IS COERCED DEBT. A DEBT IS "COERCED" WHEN
 IT IS INCURRED IN A CONSUMER'S NAME BECAUSE OF THREATS, INTIMIDATION, OR
 FORCE BY ANOTHER PERSON.
   TO DISPUTE COERCED DEBT, YOU MUST SUBMIT A "NOTICE OF COERCED DEBT" IN
 WRITING. THE "NOTICE OF COERCED DEBT" MUST INCLUDE TWO DOCUMENTS:
   1 - A SWORN OR NOTARIZED STATEMENT BY YOU, THE ALLEGED DEBTOR, STATING
 THAT A CERTAIN DEBT OR PORTION OF A  DEBT  BEING  COLLECTED  IS  COERCED
 DEBT.
   2 - "ADEQUATE DOCUMENTATION OF COERCED DEBT"
   TO  PROVIDE "ADEQUATE DOCUMENTATION OF COERCED DEBT," YOU ARE REQUIRED
 TO PROVIDE ONLY ONE OF THE FOLLOWING DOCUMENTS, BUT YOU MAY PROVIDE MORE
 THAN ONE.
   1 - A POLICE REPORT
   2 - A FEDERAL TRADE COMMISSION IDENTITY THEFT REPORT
   3 - A COURT ORDER FINDING THAT THE DEBT WAS COERCED
   4 - A NOTARIZED STATEMENT FROM A  "QUALIFIED  THIRD  PARTY"  THAT  YOU
 REPORTED THE COERCED DEBT TO.
   EXAMPLES  OF  "QUALIFIED  THIRD  PARTIES"  INCLUDE  SOCIAL WORKERS AND
 ATTORNEYS; DOCTORS, NURSES, AND THERAPISTS; EMPLOYEES FROM GOVERNMENT OR
 NON-PROFIT AGENCIES THAT WORK WITH SURVIVORS OF VIOLENCE; MEMBERS OF THE
 CLERGY; ELECTED OFFICIALS; AND LAW ENFORCEMENT OFFICERS.
 S. 2278--A                          4
 
   NO MATTER WHICH FORM OF "ADEQUATE DOCUMENTATION OF COERCED  DEBT"  YOU
 PROVIDE,  IT MUST IDENTIFY THE PARTICULAR DEBT, STATE THAT IT IS COERCED
 DEBT, AND  DESCRIBE  THE  CIRCUMSTANCES  THAT  CAUSED  THE  DEBT  TO  BE
 INCURRED.
   TO  DISPUTE  DEBT  THAT  YOU  BELIEVE IS COERCED DEBT, PLEASE SEND THE
 REQUIRED DOCUMENTS TO (DESIGNATED ADDRESS). AFTER RECEIVING YOUR  NOTICE
 OF  COERCED  DEBT, WE WILL INVESTIGATE YOUR CLAIM AND RESPOND IN WRITING
 WITHIN 35 BUSINESS DAYS. FOR MORE INFORMATION, PLEASE  CALL  (DESIGNATED
 PHONE NUMBER)."
   (B)  IF A DEBTOR NOTIFIES A CREDITOR IN WRITING THAT A PARTICULAR DEBT
 BEING COLLECTED, OR PORTION THEREOF, IS COERCED DEBT, BUT OMITS INFORMA-
 TION UNDER SUBDIVISION ONE OF THIS SECTION, AND IF  SUCH  CREDITOR  DOES
 NOT  CEASE SUCH COLLECTION ACTIVITIES, SUCH CREDITOR SHALL PROVIDE WRIT-
 TEN NOTICE  TO  SUCH  DEBTOR  OF  THE  ADDITIONAL  INFORMATION  THAT  IS
 REQUIRED.
   3.  (A)  WITHIN  TEN  BUSINESS DAYS OF RECEIVING THE INFORMATION UNDER
 SUBDIVISION ONE OF THIS SECTION, THE CREDITOR SHALL,  IF  SUCH  CREDITOR
 FURNISHES  ADVERSE  INFORMATION ABOUT THE DEBTOR TO A CONSUMER REPORTING
 AGENCY, NOTIFY SUCH  CONSUMER  REPORTING  AGENCY  THAT  THE  ACCOUNT  IS
 DISPUTED.
   (B)  WITHIN  THIRTY  BUSINESS  DAYS OF RECEIVING THE INFORMATION UNDER
 SUBDIVISION ONE OF THIS SECTION, THE CREDITOR SHALL  COMPLETE  A  REVIEW
 CONSIDERING ALL INFORMATION PROVIDED BY THE DEBTOR AND OTHER INFORMATION
 AVAILABLE  TO SUCH CREDITOR IN SUCH CREDITOR'S FILE.  IN CONNECTION WITH
 SUCH REVIEW AND COMMUNICATION OF THE OUTCOME OF SUCH REVIEW, THE  CREDI-
 TOR SHALL:
   (I)  NEITHER DIRECTLY NOR INDIRECTLY CONTACT THE INDIVIDUAL ACCUSED OF
 CAUSING THE COERCED DEBT TO BE INCURRED;
   (II) USE ONLY THE CONTACT INFORMATION THE  DEBTOR  PROVIDES  WITH  THE
 INFORMATION  UNDER  SUBDIVISION  ONE  OF THIS SECTION WHEN ATTEMPTING TO
 CONTACT SUCH DEBTOR AND SHALL NOT USE  ANY  OTHER  CONTACT  INFORMATION,
 EVEN  IF  ASSOCIATED  WITH  THE ACCOUNT UNDER REVIEW, WHEN ATTEMPTING TO
 CONTACT SUCH DEBTOR; AND
   (III) NOT DISCLOSE THE DOCUMENTS, INFORMATION, OR CONTACT  INFORMATION
 THE  DEBTOR  PROVIDES WITH THE INFORMATION UNDER SUBDIVISION ONE OF THIS
 SECTION TO ANY OTHER  PERSON,  INCLUDING,  BUT  NOT  LIMITED  TO,  JOINT
 ACCOUNT  HOLDERS,  WITHOUT  SUCH DEBTOR'S EXPRESS WRITTEN AUTHORIZATION.
 FOR PURPOSES OF THIS SUBPARAGRAPH, SENDING  DOCUMENTS,  INFORMATION,  OR
 CONTACT  INFORMATION  THE  DEBTOR PROVIDES UNDER SUBDIVISION ONE OF THIS
 SECTION TO A MAILING OR ELECTRONIC  MAIL  ADDRESS  OTHER  THAN  THE  ONE
 PROVIDED BY THE DEBTOR CONSTITUTES UNLAWFUL DISCLOSURE TO A THIRD PARTY,
 EVEN  IF  SUCH  MAIL  OR  ELECTRONIC MAIL ADDRESS IS ASSOCIATED WITH THE
 ACCOUNT.
   (C) WITHIN FIVE BUSINESS DAYS OF COMPLETING THE REVIEW UNDER PARAGRAPH
 (B) OF THIS SUBDIVISION, A CREDITOR WHO  RECOMMENCES  COLLECTION  ACTIV-
 ITIES  BASED  ON  SUCH REVIEW SHALL NOTIFY THE DEBTOR IN WRITING OF SUCH
 CREDITOR'S DETERMINATION AND THE GOOD  FAITH  BASIS  FOR  SUCH  DETERMI-
 NATION,  AND SHALL ENCLOSE ALL DOCUMENTS AND INFORMATION UPON WHICH SUCH
 CREDITOR BASES ITS DETERMINATION THEREWITH. SUCH  WRITTEN  NOTICE  SHALL
 INCLUDE  A  NOTICE  OF  THE DEBTOR'S RIGHT TO REQUEST RECONSIDERATION OF
 SUCH DETERMINATION TO RECOMMENCE COLLECTION ACTIVITIES UNDER SUBDIVISION
 FOUR OF THIS SECTION.
   (D) WITHIN FIVE BUSINESS DAYS OF COMPLETING THE REVIEW UNDER PARAGRAPH
 (B) OF THIS SUBDIVISION, A CREDITOR  WHO  CEASES  COLLECTION  ACTIVITIES
 UNDER  THIS  SECTION AND, BASED ON SUCH REVIEW, DOES NOT RECOMMENCE SUCH
 COLLECTION ACTIVITIES, SHALL:
 S. 2278--A                          5
 
   (I) NOTIFY THE DEBTOR IN WRITING THAT IT IS CEASING COLLECTION  ACTIV-
 ITIES BASED ON SUCH DEBTOR'S CLAIM OF COERCED DEBT;
   (II)  CONTACT  ANY  CONSUMER  REPORTING AGENCIES TO WHICH IT FURNISHES
 INFORMATION ABOUT THE DEBTOR AND THE PARTICULAR DEBT AND  INSTRUCT  SUCH
 CONSUMER REPORTING AGENCIES TO DELETE SUCH INFORMATION; AND
   (III)  IF  THE  CREDITOR  IS  ALSO A DEBT COLLECTOR OR DEBT COLLECTION
 AGENCY, AS DEFINED IN SECTION SIX HUNDRED OF THIS  CHAPTER,  NOTIFY  THE
 ORIGINAL  CREDITOR  THAT IT HAS CEASED COLLECTION ACTIVITIES BECAUSE THE
 DEBT WAS FOUND TO BE A COERCED DEBT.
   4. A DEBTOR WHO RECEIVES WRITTEN NOTICE UNDER PARAGRAPH (C) OF  SUBDI-
 VISION   THREE  OF  THIS  SECTION  THAT  THE  CREDITOR  WILL  RECOMMENCE
 COLLECTION ACTIVITIES  BASED  ON  SUCH  CREDITOR'S  DETERMINATION  UNDER
 SUBDIVISION  THREE  OF  THIS  SECTION MAY MAKE A REQUEST TO THE CREDITOR
 THAT THE CREDITOR RECONSIDER SUCH DETERMINATION TO RECOMMENCE COLLECTION
 ACTIVITIES WITHIN THIRTY DAYS OF THE DATE OF  MAILING  OF  SUCH  WRITTEN
 DETERMINATION.    A  DEBTOR  REQUESTING  RECONSIDERATION OF A CREDITOR'S
 DETERMINATION TO RECOMMENCE COLLECTION ACTIVITIES SHALL BE PERMITTED  TO
 SUBMIT  ADDITIONAL ADEQUATE DOCUMENTATION OF COERCED DEBT, AS DEFINED IN
 THIS ARTICLE.  SUBMITTING A REQUEST FOR RECONSIDERATION OF THE  DETERMI-
 NATION  TO  THE  CREDITOR SHALL NOT BE A CONDITION TO BRINGING AN ACTION
 UNDER SECTION SIX HUNDRED FOUR-CC OF THIS ARTICLE.
   5. NO INFERENCE OR PRESUMPTION THAT THE DEBT IS VALID OR  INVALID,  OR
 THAT  THE  DEBTOR  IS LIABLE OR NOT LIABLE FOR SUCH DEBT, SHALL ARISE IF
 THE CREDITOR DECIDES AFTER COMPLETING THE REVIEW UNDER SUBDIVISION THREE
 OF THIS SECTION TO CEASE OR RECOMMENCE THE DEBT  COLLECTION  ACTIVITIES.
 THE  EXERCISE  OR  NON-EXERCISE  OF  RIGHTS UNDER THIS SECTION SHALL NOT
 CONSTITUTE A WAIVER OF ANY OTHER RIGHT OR DEFENSE OF THE DEBTOR OR  DEBT
 COLLECTOR.
   6. CEASING COLLECTION ACTIVITIES UNDER THIS SECTION SHALL NOT TOLL THE
 STATUTE OF LIMITATIONS PERIOD ON ANY ACTION TO COLLECT THE DEBT.
   7. IF AT ANY TIME ANY INDIVIDUAL OR ENTITY, INCLUDING, BUT NOT LIMITED
 TO  THE CREDITOR, SUCH CREDITOR'S ASSIGNOR, OR ANY ASSIGNEE, RECOMMENCES
 COLLECTION ACTIVITIES ON THE DEBT AFTER CEASING COLLECTION ACTIVITIES ON
 SUCH DEBT BASED ON SUCH CREDITOR'S REVIEW OF  SUCH  DEBTOR'S  NOTICE  OF
 COERCED  DEBT,  SUCH  DEBTOR  MAY  SUBMIT A SUBSEQUENT NOTICE OF COERCED
 DEBT.  A SUBSEQUENT NOTICE OF COERCED DEBT SUBMITTED UNDER THIS SUBDIVI-
 SION SHALL BE GOVERNED BY SUBDIVISIONS ONE THROUGH SIX OF THIS SECTION.
   8. A DEBTOR INJURED BY A VIOLATION OF THIS SECTION SHALL HAVE A  CAUSE
 OF ACTION AGAINST THE CREDITOR TO RECOVER STATUTORY DAMAGES OF ONE THOU-
 SAND  DOLLARS, ACTUAL DAMAGES, IF ANY, AND THE COSTS AND ATTORNEYS' FEES
 REASONABLY INCURRED  IN  BRINGING  SUCH  ACTION.    WHERE  A  CREDITOR'S
 VIOLATION  OF THIS SECTION IS DEEMED WILLFUL, A DEBTOR SHALL BE ENTITLED
 TO PUNITIVE DAMAGES.
   § 604-CC. COERCED DEBT CAUSE OF ACTION AND AFFIRMATIVE DEFENSE.  1.  A
 PERSON  SHALL NOT CAUSE ANOTHER PERSON TO INCUR A COERCED DEBT. A PERSON
 WHO CAUSES ANOTHER PERSON TO INCUR A COERCED DEBT IN VIOLATION  OF  THIS
 SUBDIVISION  SHALL  BE CIVILLY LIABLE TO THE CREDITOR, AND/OR THE DEBTOR
 IN WHOSE NAME SUCH COERCED DEBT WAS INCURRED IF SUCH DEBTOR HAS  ALREADY
 PAID  ALL  OR PART OF SUCH COERCED DEBT, FOR THE AMOUNT OF SUCH DEBT, OR
 PORTION THEREOF, DETERMINED BY THE COURT TO BE A COERCED DEBT,  AS  WELL
 AS  SUCH CREDITOR'S AND/OR DEBTOR'S COSTS AND ATTORNEYS' FEES REASONABLY
 INCURRED IN BRINGING THE ACTION.  AN ACTION UNDER THIS SUBDIVISION SHALL
 BE COMMENCED WITHIN THREE YEARS OF THE  LATER  OF:  (A)  THE  CREDITOR'S
 DETERMINATION  THAT  ALL  OR PART OF SUCH DEBT IS COERCED DEBT; OR (B) A
 COURT'S DETERMINATION THAT ALL OR PART OF SUCH DEBT IS COERCED DEBT.
 S. 2278--A                          6
 
   2. (A) A DEBTOR SHALL HAVE A CAUSE OF ACTION AGAINST A CREDITOR IN ANY
 COURT HAVING JURISDICTION TO ISSUE A DECLARATORY  JUDGMENT  ESTABLISHING
 THAT A DEBT OR PORTION OF A DEBT ASSERTED TO BE OWED TO SUCH CREDITOR IS
 A  COERCED  DEBT.  NOTWITHSTANDING SECTION ONE THOUSAND ONE OF THE CIVIL
 PRACTICE  LAW  AND  RULES,  ANY  INDIVIDUAL  ALLEGED TO HAVE CAUSED SUCH
 COERCED DEBT TO BE INCURRED SHALL NOT  BE  A  NECESSARY  PARTY  TO  SUCH
 ACTION.  SUCH  ACTION  SHALL  NOT BE COMMENCED AND MAINTAINED UNLESS THE
 FOLLOWING CONDITIONS ARE SATISFIED:
   (I) (1) THE DEBTOR PROVIDES BY FIRST CLASS MAIL WITH CERTIFICATION  OF
 MAILING, CERTIFIED MAIL, OVERNIGHT DELIVERY, OR OTHER METHOD THAT ALLOWS
 FOR  CONFIRMATION  OF THE DATE OF MAILING, THE NOTICE OF COERCED DEBT OR
 SUBSEQUENT NOTICE OF COERCED DEBT UNDER SECTION SIX HUNDRED  FOUR-BB  OF
 THIS  ARTICLE,  PROVIDED, HOWEVER, THAT RECEIPT OF THE NOTICE OF COERCED
 DEBT SHALL NOT BE A CONDITION TO BRINGING SUCH ACTION IF IT IS SENT IN A
 PROPERLY ADDRESSED ENVELOPE; AND
   (2) THE THIRTY-DAY PERIOD UNDER PARAGRAPH (B) OF SUBDIVISION THREE  OF
 SECTION  SIX  HUNDRED FOUR-BB OF THIS ARTICLE HAS EXPIRED AND THE DEBTOR
 HAS NOT RECEIVED WRITTEN NOTICE THAT COLLECTION ACTIVITIES HAVE  CEASED;
 OR
   (II)  THE  DEBTOR RECEIVES A WRITTEN DETERMINATION UNDER PARAGRAPH (C)
 OF SUBDIVISION THREE OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE THAT
 THE PARTICULAR DISPUTED DEBT IS NOT COERCED DEBT.
   (B) THE SUBMISSION OF A REQUEST FOR RECONSIDERATION UNDER  SUBDIVISION
 FOUR  OF  SECTION  SIX HUNDRED FOUR-BB OF THIS ARTICLE OF THE CREDITOR'S
 DECISION TO RECOMMENCE DEBT COLLECTION ACTIVITIES BASED ON  SUCH  CREDI-
 TOR'S  REVIEW  OF THE DEBTOR'S NOTICE OF COERCED DEBT IS NOT A CONDITION
 TO COMMENCING AN ACTION UNDER THIS SUBDIVISION.
   3. IN AN ACTION UNDER SUBDIVISION TWO OF THIS SECTION, A DEBTOR  SHALL
 PLEAD  THE  ALLEGATIONS  OF  COERCED  DEBT  WITH PARTICULARITY AND SHALL
 ATTACH THE DOCUMENTS PROVIDED TO THE CREDITOR  PURSUANT  TO  SUBDIVISION
 ONE OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE TO ANY COMPLAINT.
   4.  A  DEBTOR WHO ESTABLISHES BY A PREPONDERANCE OF THE EVIDENCE IN AN
 ACTION PURSUANT TO SUBDIVISION TWO  OF  THIS  SECTION  THAT  A  DEBT  OR
 PORTION  OF  A  DEBT ASSERTED TO BE OWED TO THE CREDITOR IS COERCED DEBT
 SHALL BE ENTITLED TO THE FOLLOWING RELIEF:
   (A) A DECLARATORY JUDGMENT STATING THAT THE DEBT OR PORTION THEREOF IS
 COERCED DEBT AND THAT THE ALLEGED DEBTOR SHALL NOT BE  LIABLE  FOR  SUCH
 COERCED DEBT;
   (B)  AN  ORDER  ENJOINING  OR RESTRAINING THE CREDITOR FROM HOLDING OR
 ATTEMPTING TO HOLD THE DEBTOR PERSONALLY LIABLE FOR THE COERCED DEBT  OR
 ATTEMPTING TO OBTAIN OR ENFORCE ANY JUDGMENT THEREON AGAINST SUCH DEBTOR
 AND  ENJOINING  AND  RESTRAINING  ALL  FUTURE COLLECTION ACTIVITIES WITH
 RESPECT TO SUCH DEBT;
   (C) AN ORDER DISMISSING ANY OTHER CAUSE OF ACTION BROUGHT BY THE CRED-
 ITOR TO ENFORCE OR COLLECT THE COERCED DEBT FROM THE DEBTOR;
   (D) IF THE CREDITOR HAS FURNISHED ADVERSE INFORMATION  TO  A  CONSUMER
 REPORTING  AGENCY  WITH RESPECT TO SUCH COERCED DEBT, AN ORDER DIRECTING
 THE CREDITOR TO NOTIFY SUCH AGENCY TO DELETE ALL SUCH  ADVERSE  INFORMA-
 TION; AND
   (E) THE COSTS AND ATTORNEYS' FEES REASONABLY INCURRED IN BRINGING SUCH
 ACTION.
   5.  IN ANY ACTION BY A CREDITOR AGAINST A DEBTOR TO COLLECT A DEBT, IT
 SHALL BE AN AFFIRMATIVE DEFENSE TO SUCH ACTION THAT ALL OR A PORTION  OF
 THE  DEBT  IS  COERCED  DEBT.    PROVIDING  NOTICE TO THE CREDITOR UNDER
 SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE SHALL NOT BE A  PREREQUISITE
 TO ASSERTING SUCH DEFENSE; PROVIDED, HOWEVER, THE DOCUMENTS DESCRIBED IN
 S. 2278--A                          7
 
 SUBDIVISION  ONE OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE SHALL BE
 ANNEXED TO THE DEBTOR'S ANSWER. A DEBTOR WHO PREVAILS ON AN  AFFIRMATIVE
 DEFENSE  OF  COERCED  DEBT SHALL BE ENTITLED TO THE COSTS AND ATTORNEYS'
 FEES REASONABLY INCURRED IN DEFENDING AGAINST THE ACTION.  NOTWITHSTAND-
 ING  SECTION  ONE  THOUSAND ONE OF THE CIVIL PRACTICE LAW AND RULES, ANY
 INDIVIDUAL ALLEGED TO HAVE CAUSED SUCH COERCED DEBT TO BE INCURRED SHALL
 NOT BE OR BECOME A NECESSARY PARTY TO SUCH ACTION.
   6. AN ACTION PURSUANT TO SUBDIVISION TWO  OF  THIS  SECTION  SHALL  BE
 COMMENCED WITHIN THREE YEARS AFTER THE DATE ON WHICH THE DEBTOR PROVIDED
 THE  NOTICE  OF  COERCED DEBT PURSUANT TO SECTION SIX HUNDRED FOUR-BB OF
 THIS ARTICLE TO THE CREDITOR; PROVIDED, HOWEVER, THAT IF SUCH  CREDITOR,
 ITS  ASSIGNOR,  OR ANY ASSIGNEE RECOMMENCES COLLECTION ACTIVITIES ON THE
 DEBT AFTER CEASING COLLECTION ACTIVITIES ON  SUCH  DEBT  BASED  ON  SUCH
 CREDITOR'S  REVIEW  OF  THE  DEBTOR'S CLAIM OF COERCED DEBT, SUCH DEBTOR
 SHALL HAVE THE RIGHT TO FILE A SUBSEQUENT NOTICE OF COERCED DEBT  PURSU-
 ANT  TO SUBDIVISION SEVEN OF SECTION SIX HUNDRED FOUR-BB OF THIS ARTICLE
 AND THE STATUTE OF LIMITATIONS SHALL COMMENCE ON THE DATE ON WHICH  SUCH
 DEBTOR PROVIDED SUCH SUBSEQUENT NOTICE OF COERCED DEBT.
   7.  IF REQUESTED BY THE DEBTOR, THE COURT PRESIDING OVER ANY ACTION IN
 WHICH COERCED DEBT IS RAISED AS A CLAIM  OR  AFFIRMATIVE  DEFENSE  SHALL
 TAKE  APPROPRIATE  STEPS NECESSARY TO PREVENT ABUSE OF SUCH DEBTOR OR AN
 IMMEDIATE FAMILY MEMBER OF SUCH DEBTOR, INCLUDING BUT NOT LIMITED TO THE
 SEALING OF COURT RECORDS, THE REDACTION OF SUCH DEBTOR'S OR THEIR  IMME-
 DIATE  FAMILY  MEMBER'S  PERSONAL INFORMATION, AND/OR DIRECTING THAT ANY
 DISPOSITION OR HEARING BE HELD REMOTELY.
   8. THE PROVISIONS OF THIS ARTICLE SHALL NOT  BE  CONSTRUED  SO  AS  TO
 PREVENT A CREDITOR FROM ENFORCING ANY CLAIM OR COLLECTING JUDGMENT ARIS-
 ING  OUT  OF  A  LAWFUL DEBT OR PORTION THEREOF FROM ANY OTHER PERSON OR
 ENTITY OTHER THAN THE COERCED DEBTOR.
   9. FOR DEBTS SECURED BY REAL OR PERSONAL PROPERTY, THE  PRIVATE  CAUSE
 OF  ACTION  AND  AFFIRMATIVE  DEFENSE  AUTHORIZED  BY THIS SECTION SHALL
 AFFECT ONLY THE DEBTOR'S LIABILITY FOR ANY DEFICIENCY AFTER THE FORECLO-
 SURE, REPOSSESSION, OR SURRENDER AND DISPOSITION OF THE SUBJECT  COLLAT-
 ERAL.
   10.  WHENEVER  THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICA-
 TION MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF
 THE STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION TO ISSUE
 AN  INJUNCTION,  AND  UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE
 DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS.  IF  IT
 SHALL  APPEAR  TO  THE  SATISFACTION  OF  THE  COURT OR JUSTICE THAT THE
 DEFENDANT HAS, IN FACT, VIOLATED THIS  SECTION,  AN  INJUNCTION  MAY  BE
 ISSUED BY SUCH COURT OR JUSTICE, ENJOINING OR RESTRAINING ANY VIOLATION,
 WITHOUT  REQUIRING  PROOF  THAT ANY PERSON HAS, IN FACT, BEEN INJURED OR
 DAMAGED THEREBY. IN ANY SUCH PROCEEDING THE COURT MAY MAKE ALLOWANCES TO
 THE ATTORNEY GENERAL AS PROVIDED IN SECTION EIGHTY-THREE  HUNDRED  THREE
 OF THE CIVIL PRACTICE LAW AND RULES, AND MAY MAKE DIRECT RESTITUTION. IN
 CONNECTION  WITH  ANY SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS
 AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE RELEVANT  FACTS
 AND  TO  ISSUE  SUBPOENAS  IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND
 RULES. WHENEVER THE COURT SHALL  DETERMINE  THAT  A  VIOLATION  OF  THIS
 SECTION  HAS  OCCURRED,  THE  COURT  MAY IMPOSE A CIVIL PENALTY FOR EACH
 VIOLATION UP TO FIVE THOUSAND DOLLARS.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.