New York Attorney General Letitia James will speak at a press conference at the Attorney General’s office held in New York City on January 8, 2025.
Michael M. Santiago | Getty Images
New York Attorney General Letitia James announced a bill Thursday to protect state consumers and small businesses from fraud and deceptive practices from lenders, debt collectors and healthcare companies.
James said the law would strengthen the existing consumer protection laws of 1970, and would strengthen the state’s existing consumer protection laws when the Trump administration accused federal agencies of the challenges.
According to James, the new bill, called fostering affordability and integrity through reasonable business law, is supported by state legislators Leroy Comrie and Micah Rusher.
“Currently in New York, businesses can cancel their subscriptions. That seems impossible. Nursing home owners can sue the relatives of deceased former residents, and debt collectors can steal Social Security benefits,” James said. “The Fair Business Practices Act makes it easier for New Yorkers to make fraud easier and closes loopholes that allow my office to chase after anyone who is violating the law.”
The New York bill is one of the first examples of state officials trying to fill the vacuum left behind by the federal Consumer Financial Protection Agency hobling.
Since taking over as acting director of CFPB last month, Russell Vought has fired about 200 employees and told him to stop almost all his work for the rest. Testimony from current employees shows that Vought and Elon Musk’s Government Efficiency Bureau planned to fire workers from almost every agency, but was stopped by a federal judge.
It is unclear what will ultimately happen to the institution. However, as long as the CFPB is frozen, consumers must rely on state AGs and regulators when there is a complaint.
James said the law would stop car lenders and mortgage and student loan servicers from consumers to expensive loans, reduce so-called junk fees, take away suspicious practices at car dealers, and prevent businesses from using non-English speakers.
The effort has attracted support from former President Joe Biden administration, two key regulators from former CFPB director Rohit Chopra and former FTC chairman Lina Khan.
“We need stronger state laws to combat abuse that harms families and honest businesses,” Chopra said in a statement.
“By passing a strong consumer protection bill, New York lawmakers can enable Attorney General James to fully defend New Yorkers’ pocketbook, privacy and economic freedom,” Kern said.
