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Senate bill · S4271 (2025-26)

Relates to licensing consumer debt collectors

Latest action Jun 1, 2026

New York State Senate

Sponsor

Brian Kavanagh

State Senator, District 27 · Democratic

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Summary

Relates to licensing consumer debt collectors; sets minimum standards and regulations; establishes penalties for violations.

Summary from NY Open Legislation. How we handle summaries

Amends the Banking Law.

From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 1, 2026. About our data

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Purpose, from the sponsor's memo

The purpose of this bill is to protect consumers against unfair and deceptive debt collection practices and maintain a high level of integ- rity and professionalism in the debt collection industry, by requiring third party debt collectors and debt buyers to obtain a license from the Department of Financial Services.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Where it stands

Passed one of the two chambers; it still needs the other.

  1. Introduced
  2. In committee
  3. Up for a vote
  4. Passed one chamber
  5. Passed
  6. Enacted

Committee

Banks · New York State Assembly

Also referred to Banks · New York State Senate.

Cosponsors

Robert Jackson

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

Read on NY Senate (opens in a new tab)
  • Democratic1

Shown in neutral colors by design; Agora is non-partisan.

The sponsor's argument

Why Brian Kavanagh says this is needed

Federal and state laws regulate how debt collectors may communicate with debtors and prohibit the use of certain threatening, deceptive and unfair collection practices. Despite these legal protections, there continue to be frequent consumer complaints regarding debt collection practices. Due to the sensitive nature of the information used in the course of debt collection agencies' work, and the vulnerable position consumers may find themselves when dealing with these agencies, it is incumbent upon the legislature to ensure that agencies that engage in unscrupulous or abusive practices shall not continue to operate in New York. To protect the interests, reputations, and financial well-being of the residents of this state from unwarranted harm, this bill would prohibit debt collection agencies from operating without a license. Licensure would enable the state to hold debt collection agencies accountable and would provide a mechanism for investigating improper behavior. Third party debt collection agencies are currently required to be licensed in thirty states, as well as the cities of Buffalo and New York. This bill would not preempt Buffalo's or New York City's licensing requirements, but would provide all New York consumers with protections against unfair and deceptive debt collection practices.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Recorded votes

  • Vote: Committee vote · Banks

    Senate BanksApr 28, 2026Result: passed

    (5) (2) (0) (0)

  • Vote: Floor vote

    NY SenateJun 11, 2025Result: passed

    (47) (12) (0) (4)

  • Vote: Committee vote · Finance

    Senate FinanceMay 28, 2025Result: passed

    (20) (2) (0) (0)

  • Vote: Committee vote · Banks

    Senate BanksMay 5, 2025Result: passed

    (5) (2) (0) (0)

Full history

  1. Jun 1, 2026

    Amend and Recommit to Finance

    AMEND AND RECOMMIT TO FINANCE

    NY Senate

  2. Apr 28, 2026

    Reported out of committee

    REPORTED AND COMMITTED TO FINANCE

    NY Senate

  3. Jan 7, 2026

    Died in Assembly

    DIED IN ASSEMBLY

    NY Assembly

  4. Jan 7, 2026

    Referred to committee

    REFERRED TO BANKS

    NY Senate

  5. Jun 11, 2025

    Sent to the executive

    DELIVERED TO ASSEMBLY

    NY Senate

Show full history (7 earlier events)
  1. Jun 11, 2025

    Passed a chamber

    PASSED SENATE

    NY Senate

  2. Jun 11, 2025

    Referred to committee

    REFERRED TO BANKS

    NY Assembly

  3. Jun 4, 2025

    Advanced to Third Reading

    ADVANCED TO THIRD READING

    NY Senate

  4. May 29, 2025

    2ND Report CAL.

    2ND REPORT CAL.

    NY Senate

  5. May 28, 2025

    1ST Report CAL.1352

    1ST REPORT CAL.1352

    NY Senate

  6. May 5, 2025

    Reported out of committee

    REPORTED AND COMMITTED TO FINANCE

    NY Senate

  7. Feb 3, 2025

    Referred to committee

    REFERRED TO BANKS

    NY Senate