April 1, 2026

New York Senate Bill 8811 (the “Bill”) addresses how unfair and deceptive business practices are defined and enforced under state law. The Bill repeals portions of the recently enacted FAIR Business Practices Act and replaces them with a revised framework. It aligns the definition of “substantial injury” with federal standards. The Bill provides that private individuals may bring actions only for deceptive acts and practices. These actions may include claims for damages, injunctive relief, and, in some cases, enhanced damages and attorneys’ fees. The Bill also modifies procedural requirements, including adjustments to pre-suit notice timing. These provisions relate to how consumer protection standards are applied and enforced across business activities in New York.

For servicers and investors, the revised enforcement structure may: (1) reduce exposure to certain private consumer lawsuits by limiting private claims to deceptive acts and practice and (2) increase regulatory enforcement risk through broader Attorney General authority over unfair and abusive practices. Therefore, companies may need to allocate attention to compliance practices across borrower communications and servicing conduct.

As a status update, the Bill was signed into law on March 27, 2026. For more information, CLICK HERE.

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If you have questions about this publication, please contact Adam Friedman, Ralph Vartolo or Michael DeRosa,
Friedman Vartolo LLP, 1325 Franklin Avenue, Suite 160, Garden City, NY 11530, Phone: (212) 471-5100 | Fax: (212) 471-5150.