On March 18, the governor of New York signed S. 8830, substantially amending the state’s coerced debt statute enacted in December 2025 (covered by InfoBytes here). Among the most significant changes, the amended law narrows the definition of “coerced debt” by replacing the broader “economic abuse” framework with a standard tied to duress, intimidation, threat, force, coercion, manipulation, or undue influence within defined relationship categories, including family relationships and those involving elderly individuals. The law creates new rules for secured debt, excluding debts secured by real property from coverage, and limiting the affirmative defense for debts secured by personal property to cases involving liability for deficiencies after repossession or surrender of collateral. Additionally, the amendments establish a standalone right of action against a person who caused another to incur coerced debt, with a three-year statute of limitations and add attorney general enforcement provisions authorizing injunctive relief, restitution, and civil penalties of up to $5,000 per violation.

The amendments provide that creditors must cease collection activities within 10 business days of receiving adequate documentation instead of immediately upon receipt, and the law broadens acceptable documentation by replacing the FTC identity theft report requirement with any official report filed with a federal, state, or local law enforcement agency. The amended law introduces a 15-day cure period allowing creditors to correct violations before legal action and adds a bona fide error defense applicable in declaratory judgment actions and enforcement proceedings. Further, debtors must request reconsideration before filing suit and may proceed only if the creditor affirms its decision or fails to respond within 35 days. The amendments extend the effective date from 90 to 180 days after enactment, and the law applies only to debts incurred on or after that date.