New York State-New State law would protect consumers from fraud, predatory loans and other abusive business practices, according to New York Attorney General Leticia James.
With his March 13 announcement with Rep. Mikalasher and support from Senator Leroy Comley, James said the Fair Business Practices Act will help protect New Yorkers from harmful business practices in the absence of federal protection.
James said the state’s law addresses actions such as predatory lenders who sell expensive, high-interest loans to small businesses, student loan servicers who lead borrowers to expensive payment plans, nursing homes that unfairly appeal to members of their deceased family members, and businesses that make it difficult for consumers to cancel subscriptions.
The Attorney General described the state’s current consumer protection laws as inadequate and outdated, saying he was concerned that New Yorkers have long relied on the federal government for its protection.
“We can’t rely on federal consumer protection laws,” James said. “In fact, we can’t rely on the federal government. In recent weeks, the federal government has taken steps to destroy regulatory offices. Recently, as you know, the Consumer Financial Protection Board (CFPB) has been trying to dismantle it.”
President Donald Trump fired former CFPB director Rohit Chopra on February 1st. The temporary replacement director ordered an immediate suspension of all agency businesses, cancelled $100 million on contracts and fired 70 employees.
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“It would be surprising to many people that New York, a deep blue color, has one of the weakest consumer protection laws in the country,” Rusher said in the announcement.
New York’s Consumer Protection Act, passed in 1970, prevents businesses from committing deceptive business practices and practices. However, the law could make consumers vulnerable to unfair or abusive behavior by businesses, according to the Attorney General’s Office.
The Epoch Times asked James if there have been an increase in complaints and reports of unfair or abusive business practices since the new administration took office.
“Through my time as Attorney General, I think there has been an increase in regards to many of these fraudulent, deceptive, unfair practices,” James said. “It’s obviously going forward with the absence (of the federal government) and filling that gap is clearly going to the states, and I and others will do that. …We need to strengthen the laws here in New York.”
The Associated Press contributed to this report.
