STATE OF NEW YORK
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3789--C
Cal. No. 1027
2025-2026 Regular Sessions
IN SENATE
January 30, 2025
___________
Introduced by Sen. MYRIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks -- reported favora-
bly from said committee, ordered to first and second report, ordered
to a third reading, amended and ordered reprinted, retaining its place
in the order of third reading -- recommitted to the Committee on Banks
in accordance with Senate Rule 6, sec. 8 -- reported favorably from
said committee, ordered to first and second report, ordered to a third
reading, amended and ordered reprinted, retaining its place in the
order of third reading -- again amended and ordered reprinted, retain-
ing its place in the order of third reading
AN ACT to amend the financial services law, in relation to civil penal-
ties for certain fraud or misrepresentation of a material fact with
respect to a financial product or service
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 1 of subsection (a) of section 408 of the finan-
2 cial services law is amended and a new subsection (c) is added to read
3 as follows:
4 (1) not to exceed five thousand dollars per offense, for:
5 (A) (i) any [intentional] fraud [or intentional misrepresentation]
6 with respect to a financial product or service or involving any person
7 offering to provide or providing financial products or services; or
8 (ii) any representation or omission of a material fact with respect to
9 a financial product or service or involving any person offering to
10 provide or providing financial products or services that misleads or is
11 likely to mislead a consumer when the consumer's interpretation of the
12 representation or omission is reasonable under the circumstances; [or]
13 (B) any violation of state or federal fair debt collection practices
14 or federal or state fair lending laws; or
15 (C) any act or practice that:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05052-09-6
S. 3789--C 2
1 (i) causes or is likely to cause substantial injury to consumers which
2 is not reasonably avoidable by consumers; and
3 (ii) such substantial injury is not outweighed by countervailing bene-
4 fits to consumers or to competition; and
5 (c) This section shall not be construed to limit any other criminal or
6 civil liability such entity may be subject to under law.
7 § 2. This act shall take effect immediately.
