Establishes a right of action for claims arising out of coerced debts and limits certain actions.

This bill amends the general business law to establish a right of action for claims arising out of coerced debts. It defines "coerced debt" as a debt incurred due to duress, intimidation, threat, force, coercion, manipulation, or undue influence. The bill limits certain actions related to coerced debts, such as ceasing collection activities upon receiving adequate documentation of coerced debt. It also establishes an affirmative defense for debtors in actions to collect a debt, allowing them to assert that all or a portion of the debt is coerced.

Establishes a right of action for claims arising out of coerced debts and limits certain actions.

This bill amends the general business law to establish a right of action for claims arising out of coerced debts. It defines "coerced debt" as a debt incurred due to duress, intimidation, threat, force, coercion, manipulation, or undue influence. The bill limits certain actions related to coerced debts, such as ceasing collection activities upon receiving adequate documentation of coerced debt. It also establishes an affirmative defense for debtors in actions to collect a debt, allowing them to assert that all or a portion of the debt is coerced.