STATE OF NEW YORK
________________________________________________________________________
3789--B
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
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 to read as follows:
3 (1) not to exceed five thousand dollars per offense, for:
4 (A) (i) any [intentional] fraud [or intentional misrepresentation]
5 with respect to a financial product or service or involving any person
6 offering to provide or providing financial products or services; or
7 (ii) any representation or omission of a material fact with respect to
8 a financial product or service or involving any person offering to
9 provide or providing financial products or services that misleads or is
10 likely to mislead a consumer when the consumer's interpretation of the
11 representation or omission is reasonable under the circumstances; [or]
12 (B) any violation of state or federal fair debt collection practices
13 or federal or state fair lending laws; or
14 (C) any act or practice that:
15 (i) causes or is likely to cause substantial injury to consumers which
16 is not reasonably avoidable by consumers; and
17 (ii) such substantial injury is not outweighed by countervailing bene-
18 fits to consumers or to competition; and
19 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05052-06-6
