New York 2025-2026 Regular Session

New York Assembly Bill A09166

Introduced
10/17/25  
Refer
10/17/25  

Caption

Creates a private right of action for improper debt collection procedures; allows plaintiffs to recover punitive damages and reasonable attorney's fees.

Impact

If enacted, A09166 will significantly shift the landscape for debt collection practices in New York State. With the introduction of a private right of action, debtors will have greater leverage against collection agencies and creditors, motivating these entities to adhere strictly to legal and ethical debt collection procedures. This change could lead to a reduction in abusive practices, enhancing consumer protection. Moreover, the potential for punitive damages may deter unethical debt collection practices by increasing the financial risks associated with violations.

Summary

Assembly Bill A09166 seeks to amend the general business law of New York by introducing a private right of action specifically targeting improper debt collection procedures. This bill grants debtors the ability to initiate legal action against individuals or entities that violate the defined articles regarding debt collection, allowing them to recover not only actual damages but also punitive damages as awarded by the courts, as well as reasonable attorney's fees. The aim is to protect consumers from aggressive and improper practices in debt collection, ensuring that they have a legal recourse when wronged.

Contention

The proposed bill may face opposition from various stakeholders in the financial services industry, including debt collection agencies and creditors. These entities might argue that allowing a private right of action could lead to an influx of litigation and inflated claims, potentially making debt collection more challenging and costly. Furthermore, concerns may be raised regarding the potential for misuse of this right by some debtors, possibly leading to frivolous lawsuits aimed at exploiting the system rather than addressing legitimate grievances. As such, the bill may stir debate about balancing consumer protections with the operational realities faced by creditors and collectors.

Companion Bills

NY S07233

Same As Creates a private right of action for improper debt collection procedures; allows plaintiffs to recover punitive damages and reasonable attorney's fees.

Previously Filed As

NY S07233

Creates a private right of action for improper debt collection procedures; allows plaintiffs to recover punitive damages and reasonable attorney's fees.

NY S08500

Establishes a right of action for the deprivation of constitutional rights; provides for compensatory damages, punitive damages, injunctive and declaratory relief, and reasonable attorney's fees.

NY A09076

Establishes a right of action for the deprivation of constitutional rights; provides for compensatory damages, punitive damages, injunctive and declaratory relief, and reasonable attorney's fees.

NY S07721

Establishes a private right of action for deed theft; provides that victims of deed theft may maintain an action against a deed thief or a bank that provides a loan that assists in the commission of deed theft; authorizes victims of deed theft to recover actual damages, treble damages and attorneys' fees; defines terms.

NY A08863

Establishes a private right of action for deed theft; provides that victims of deed theft may maintain an action against a deed thief or a bank that provides a loan that assists in the commission of deed theft; authorizes victims of deed theft to recover actual damages, treble damages and attorneys' fees; defines terms.

NY S08905

Limits damages that can be recovered by plaintiffs who were uninsured motorists, intoxicated drivers, or convicted of a felony during which the accident occurred in tort claims.

NY A09218

Limits damages that can be recovered by plaintiffs who were uninsured motorists, intoxicated drivers, or convicted of a felony during which the accident occurred in tort claims.

NY A10912

Requires interest rates for debts be set to no more than one percentage point greater than the consumer price index for urban wage earners and clerical workers per annum; removes collection fees outside of certain debts owed.

NY S08624

Permits courts to award punitive damages against an estate for sexual abuse.

NY S09533

Permits a plaintiff to recover directly against a third party defendant found to be liable to the defendant in certain actions.

Similar Bills

No similar bills found.