NY Attorney General Letitia James speaks during a press conference at the offices of the Attorney General on January 08, 2025 in New York City.
Michael M. Santiago | Getty Images
New York Attorney General Letitia James on Thursday announced a bill to protect the state’s consumers and small businesses from scams and deceptive practices from lenders, debt collectors and health care firms.
James said in a release that the legislation would bolster the state’s existing consumer protection law —which dates from 1970 and is more limited in scope — at a time when the Trump administration has hobbled the federal agency charged with that task.
The new bill, called the Fostering Affordability and Integrity through Reasonable Business Act, is supported by state lawmakers Senator Leroy Comrie and Assemblymember Micah Lasher, according to James.
“In New York right now, companies can make canceling a subscription so hard it seems impossible; nursing homeowners can sue relatives of deceased former residents; and debt collectors can steal social security benefits,” James said. “The FAIR Business Practices Act will close loopholes that make it too easy for New Yorkers to be scammed and will allow my office to go after anyone who violates the law.”
The New York bill is one of the first examples of state officials attempting to fill the vacuum left by the hobbling of the federal Consumer Financial Protection Bureau.
Since taking over as Acting Director of the CFPB last month, Russell Vought has fired about 200 employees and told the rest to stop nearly all work. Vought and Elon Musk’s Department of Government Efficiency planned to fire nearly all the agency’s workers, according to testimony from current employees, but was stopped by a federal judge.
It’s unclear what will ultimately happen to the agency. But so long as the CFPB is frozen, consumers will have to rely on their state AGs and regulators when they have complaints.
James said the law will stop auto lenders as well as mortgage and student loan servicers from steering consumers into high-cost loans, will reduce so-called junk fees, tamp down on shady practices at car dealerships, and prevent firms from taking advantage of those who don’t speak English.
The effort drew support from two key regulators from former President Joe Biden’s administration, ex-CFPB director Rohit Chopra and former FTC Chair Lina Khan.
“We need stronger state laws to combat abuses that harm families and honest businesses,” Chopra said in a statement.
“By passing a strong consumer protection bill, New York lawmakers can empower Attorney General James to fully defend New Yorkers’ pocketbooks, privacy, and economic freedoms,” Khan said.