The latest edition of the Consumer Finance State Roundup highlights recently enacted measures of potential interest from two states:
New Jersey
- Effective immediately upon approval by Governor Phil Murphy on January 12, Assembly Bill 4841 amends the Law Against Discrimination to prohibit discrimination based upon “source of lawful income used for rental or mortgage payments,” among other bases. The measure – which focuses principally on discriminatory practices relating to the sale, rental, lease, assignment, or sublease of real property – defines “source of lawful income” as any source of income lawfully obtained or any source of rental or mortgage payment lawfully obtained including, but not limited to, any federal, State, or local public assistance or housing assistance voucher or funds, including Section 8 housing choice vouchers, temporary rental assistance programs or State rental assistance programs; rental assistance funds provided by a nonprofit organization; federal, State, or local benefits, including disability benefits and veterans’ benefits; court-ordered payments, including, but not limited to, child support, alimony, or damages; and any form of lawful currency tendered, without regard to whether the currency is tendered in the form of cash, check, money order, or other lawful means.
New York
- Effective March 19, Senate Bill 1353-B adds a new article to the New York General Business Law to address actions involving coerced debt (meaning “debt incurred as a result of economic abuse, including but not limited to, by means of fraud, duress, intimidation, threat, force, coercion, manipulation, or undue influence, the non-consensual use of the debtor’s personal information”). The measure: (a) prohibits all collection activities on a coerced debt once a creditor is notified that a debt may be considered coerced; (b) requires a creditor to review the debtor’s claim of coerced debt using the information in the notification within 30 days of receiving the notification; and (c) after completion of the review, required a creditor to inform the debtor within five days regarding whether it intends to continue collection activities. Further, the measure provides that a debt being coerced is also an affirmative defense in any action by a creditor to collect the debt.
- Effective June 3, Assembly Bill 1820-A adds Section 327-a to the New York Real Property Law, requiring the removal of any covenants, conditions, or restrictions on recorded instruments that discriminate against any protected classes (except lawful restrictions arising under state and federal law) before a transfer of the property may be recorded. Specifically, the new section requires that a seller of real property must: (a) have the unlawful restriction removed; (b) provide the purchaser or title insurance applicant with a copy of the modified document prior to or at the closing of title; and (c) record the modified document. The measure further imposes obligations on condominium, cooperative, and homeowners association leadership with respect to the deletion of amendment of any covenants or restrictions that so discriminate, as well as on any holder of an ownership interest in real property subject to an unlawfully restrictive covenant.
