From CNBC: 2025-03-13 14:00:01

New York Attorney General Letitia James introduced a bill to protect consumers and small businesses from scams and deceptive practices by lenders, debt collectors, and health care firms. The legislation aims to strengthen consumer protection laws amidst federal agency limitations under the Trump administration.

The Fostering Affordability and Integrity through Reasonable Business Act, supported by state lawmakers, will close loopholes that allow New Yorkers to be scammed. The bill will prevent companies from making it difficult to cancel subscriptions, nursing homes from suing relatives of deceased residents, and debt collectors from stealing social security benefits.

In the absence of federal oversight from the Consumer Financial Protection Bureau, state officials are stepping up to protect consumers. The Acting Director of the CFPB, Russell Vought, fired employees and halted work, prompting state AGs like Letitia James to take action against financial abuses that harm families and honest businesses.

The new law will prevent auto lenders, mortgage servicers, and student loan providers from offering high-cost loans. It will also address shady practices at car dealerships, reduce junk fees, and protect consumers who do not speak English. Former federal regulators Rohit Chopra and Lina Khan praised the efforts to defend New Yorkers’ economic freedoms.

Read more: New York AG announces bill to protect consumers after Trump hobbles CFPB