Sen. Gounardes’ Consumer Debt Uniformity Act Passes State Senate
Bill updates consumer laws to protect New Yorkers struggling with medical debt, rent arrears, tuition debt, and utility bills
FOR IMMEDIATE RELEASE: JUNE 2, 2026
New York State Senator Andrew Gounardes issued the following statement after his Consumer Debt Uniformity Act passed the New York State Senate:
“As the cost of living goes up, New Yorkers are struggling with medical debt, rent arrears, tuition debt and utility bills. But our outdated consumer protection laws let far too many New Yorkers fall through the cracks. We all want a court system that treats New Yorkers with fairness and respect. But when it comes to debt cases, that’s not what we’re getting.
“My Consumer Debt Uniformity Act does a simple thing: extend existing protections to all types of debt cases. That means less confusion and stronger protections for all New Yorkers.”
Background:
New York gives consumers important protections when they’re sued over credit card and other consumer debts, but those protections are tied to the outdated term “consumer credit transaction”—a category that doesn't reflect how federal law, most other states, or the debt collection industry actually work. As a result, those protections often don't apply to medical debt, rent arrears, tuition debt, utilities, and other everyday consumer debts.
Consumer debt cases overwhelmingly involve represented plaintiffs suing unrepresented consumers. Without clear pleadings, notices, and fair deadlines, consumers often don't understand what they are being sued for or how to respond.
Senator Gounardes’ Consumer Debt Uniformity Act (S9760/A10182) extends basic protections already used in consumer credit cases to all consumer debt cases, including requirements that the complaint provide basic information about the alleged debt, along with additional notices in English and Spanish, clearer notice on summary-judgment motions, and more time to raise improper service. These protections help unrepresented consumers identify the debt, understand the case against them, and respond before losing by default.
Clearer complaints and uniform rules also benefit creditors by making the process more predictable, improving consistency across courts, and helping consumers identify and resolve valid debts earlier in the case.
The proposal has widespread support from consumer advocates, legal services organizations, New Yorkers for Responsible Lending, the New York City Bar Association, The Pew Charitable Trusts, the National Consumer Law Center, and the Receivables Management Association International.
Press Contact:
Billy Richling
Communications Director
State Senator Andrew Gounardes
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