Removes certain language relating to requests for reconsideration of creditor determinations

2025 Regular Session Introduced by Linda Rosenthal

Debtors can request a 30-day reconsideration of a creditor’s plan to resume collection and submit new documentation, with creditors' 30-day review, after which reconsideration is o

REFERRED TO CONSUMER AFFAIRS AND PROTECTION

Purpose and intent

The bill amends the General Business Law to modify the process by which a debtor can seek reconsideration of a creditor’s determination to recommence debt collection activities.

It clarifies and expands the debtor’s ability to submit additional documentation when contesting a creditor’s determination to resume collection after a cease in collection efforts.

Key provisions and changes

Reconsideration right after notice: When a creditor notifies a debtor, in writing, that it will recommence collection activities based on a specific determination, the debtor has the option to request that the creditor reconsider that determination.

The window to request reconsideration is within 30 days of the mailing date of the written determination.

Additional documentation allowed: A debtor requesting reconsideration may submit additional adequate documentation of coerced debt (as defined by the article).

** creditor review timeline*: Upon receiving a reconsideration request, the creditor must **complete a review of all information, including any new documentation, within 30 days*.

Discretion on further reconsideration: Whether there will be any further reconsideration of the creditor’s determination is at the creditor’s discretion after the initial reconsideration.

Not a prerequisite to bring an action: Submitting a reconsideration request is not a condition for bringing a related legal action under section 604-cc (debt collection actions) of the same article.

Affected parties and scope

Debtors who receive written notices that a creditor intends to recommence collection activities.

Creditors/collection agencies subject to New York General Business Law provisions governing debt collection and reconsideration procedures.

The provision applies to the statutory framework established in chapter 90 of the Laws of 2026, with the same effective date and manner of implementation.

Procedural and timeline aspects

30-day reconsideration window: Debtor must request reconsideration within 30 days of the mail date of the creditor’s written determination.

30-day creditor review period: Creditors must review the reconsideration request and all submitted documentation within 30 days of receipt.

Post-review discretion: Any additional reconsideration beyond the initial review is at the creditor’s discretion.

Effective date: The act takes effect on the same date and in the same manner as chapter 90 of the laws of 2026.

Practical impact and considerations

The bill enhances debtor due process by formalizing a reconsideration mechanism and allowing the submission of new documentation to challenge a creditor’s determination to resume collection.

It creates a clear, time-bound process for both debitors and creditors, potentially accelerating resolution or adjustment of disputed collection determinations.

By stating that reconsideration is not a prerequisite for filing a lawsuit, the bill preserves the option to pursue legal action independently of the reconsideration process.

Note: This summary reflects the text as introduced and amended, focusing on substantive changes and practical effects.

Bill