Relates to actions for claims arising out of coerced debts; limits certain actions; established a right of action against person who causes another to incur coerced debt.

New York Assembly Bill A09460 aims to protect individuals from debts incurred under coercion. It defines 'coerced debt' as obligations resulting from threats, intimidation, or undue influence, particularly in intimate relationships or situations involving human trafficking or elder abuse. The bill allows victims to challenge such debts in court and seek damages from those who coerced them into incurring the debt. It also limits creditors' ability to collect on debts identified as coerced.

Supporters of the bill, including consumer protection advocates and organizations assisting abuse victims, praise it for providing legal recourse to those forced into debt through coercion. They highlight its potential to alleviate financial burdens on vulnerable individuals and hold perpetrators accountable. The bill's passage is seen as a significant step toward protecting consumers from financial abuse.

Critics, including some financial institutions and creditors, express concern that the bill could lead to increased litigation and complicate debt collection processes. They argue that determining whether a debt was coerced may be challenging and could result in unintended consequences for legitimate creditors. Additionally, there are worries about potential misuse of the law by individuals seeking to evade legitimate debts.