Bill > A04328

This bill clarifies and expands the legal definition of budget planning in the New York General Business Law, broadening the scope of what constitutes budget planning services. The bill now specifies that budget planning can include debt relief and debt settlement, and that a person or entity can be considered a budget planner even if they use a third party to hold and disburse funds. The bill also introduces new provisions requiring attorneys engaged primarily in budget planning to follow specific guidelines, such as negotiating directly with creditors and depositing client funds in a dedicated account. Additionally, the bill gives the attorney general expanded enforcement powers, allowing them to seek court orders to enjoin or restrain alleged unlawful budget planning activities. The legislation provides for significant civil penalties of up to $10,000 per enrolled debtor or three times the amount of debt enrolled, and permits the court to order restitution to aggrieved parties. These changes aim to provide more consumer protection and regulatory oversight in the budget planning industry, ensuring that service providers operate transparently and with proper licensing. The bill will take effect 90 days after becoming law.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A4328