New York AG announces bill to protect consumers after Trump hobbles CFPB
New York Attorney General Letitia James has introduced a new bill aimed at protecting consumers and small businesses in the state from scams and deceptive practices by lenders, debt collectors, and health care firms. The legislation, known as the Fostering Affordability and Integrity through Reasonable Business Act, seeks to strengthen the state’s existing consumer protection law, which has been in place since 1970 but is limited in scope.
According to James, the bill is necessary in light of the Trump administration’s efforts to weaken the federal agency responsible for consumer protection. The legislation is supported by state lawmakers Senator Leroy Comrie and Assemblymember Micah Lasher.
The FAIR Business Practices Act aims to close loopholes that make it easy for New Yorkers to fall victim to scams. It will empower the Attorney General’s office to take action against any individuals or businesses that violate the law. The bill addresses a range of issues, including making it easier to cancel subscriptions, preventing nursing homeowners from suing relatives of deceased former residents, and stopping debt collectors from stealing social security benefits.
The introduction of this bill comes at a time when the Consumer Financial Protection Bureau (CFPB) is facing challenges. Acting Director Russell Vought has fired hundreds of employees and halted most of the agency’s work. As a result, consumers may have to rely on state attorneys general and regulators to address their complaints.
The FAIR Business Practices Act will prohibit auto lenders, mortgage servicers, and student loan servicers from pushing consumers into high-cost loans. It will also crack down on deceptive practices at car dealerships and protect individuals who do not speak English from being taken advantage of.
Former CFPB director Rohit Chopra and former FTC Chair Lina Khan have expressed support for the bill. They believe that stronger state laws are needed to protect families and honest businesses. Chopra stated that passing a robust consumer protection bill in New York would empower Attorney General James to defend New Yorkers’ financial well-being and privacy. Khan emphasized the importance of protecting consumers’ economic freedoms through legislation.
Overall, the FAIR Business Practices Act is a crucial step towards safeguarding consumers and small businesses in New York from fraudulent practices. It highlights the importance of state-level consumer protection laws in the absence of federal oversight.
