NY prosecutor, Letitia James speaks during a press conference at the prosecutor general offices on January 08, 2025 in New York.
Michael M. Santiago | Getty images
The New York Attorney General, Letitia James, announced a bill on Thursday to protect consumers and small state companies against scams and misleading practices against lenders, debt collectors and health care companies.
James said in a statement that legislation would strengthen the current state protection law – which dates from 1970 and is more limited – at a time when the Trump administration hampered the Federal Agency in charge of this task.
The new bill, called the Fostering Approvality and Integrity through the law on reasonable affairs, is supported by the senator of the legislators of the Leroy Comrie State and the assembly of the Micah Lasher assembly, according to James.
“In New York at the moment, companies can cancel a hard subscription that it seems impossible; nursing owners can pursue parents of former deceased residents; and debt collectors can steal social security services,” said James. “The Fair Business Practices Act will close the gaps that will facilitate that New Yorkers are scammed and allow my office to continue anyone who violates the law.”
The New York bill is one of the first examples of state officials trying to fill the vacuum cleaner left by the work of the Federal Consumer Protection Bureau.
Since he took the position of acting director of the CFPB last month, Russell Vought has dismissed around 200 employees and said the rest of stopping almost all the work. The Department of Elon and Elon Musk’s government was planning to fire almost all workers from the agency, according to the testimony of current employees, but was arrested by a federal judge.
We do not know what will finally happen to the agency. But as long as the CFPB is frozen, consumers will have to count on their GA and state regulators when they have complaints.
James said that the law would prevent car lenders as well as mortgage and students from lending consumers to high cost loans, will reduce so -called waste costs, write shady practices among car dealerships and prevent businesses from taking advantage of those who do not speak English.
The effort attracted the support of two key regulators from the administration of former president Joe Biden, the former director of the CFPB, Rohit Chopra, and the former president of the FTC, Lina Khan.
“We need more solid states laws to combat abuses that harm honest families and businesses,” Chopra said in a statement.
“By adopting a strong law on consumer protection, New York legislators can allow the Attorney General James to fully defend portfolios, private life and economic freedoms from New Yorkers,” said Khan.