Bill > S05546

This bill replaces the term "consumer credit transaction" with "consumer debt" across multiple New York state legal statutes, providing a comprehensive definition of consumer debt as any obligation of a natural person to pay money arising from transactions primarily for personal, family, or household purposes. The bill expands the definition to include various types of consumer-related financial obligations, such as medical debt, while explicitly excluding obligations secured by real property or those related to property possession proceedings. It introduces more detailed requirements for legal actions involving consumer debt, including mandatory disclosure of specific information in legal complaints, such as the original creditor's name, account details, payment history, and chain of ownership for transferred debts. The legislation aims to provide greater transparency and protection for consumers by requiring more comprehensive documentation in debt-related legal proceedings, mandating bilingual notices, and establishing stricter standards for default judgments. Additionally, the bill requires the chief administrator of the courts to update all relevant court rules and forms within six months to reflect the new terminology and definitions, ensuring consistent implementation across New York's judicial system.

Justice

https://www.nysenate.gov/legislation/bills/2025/S5546