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New York State Recovers Over $245 Million for Consumers in 2024
Table of Contents
- 1. New York State Recovers Over $245 Million for Consumers in 2024
- 2. Key Achievements in 2024
- 3. Governor Hochul’s commitment
- 4. Department of Financial Services (DFS)
- 5. Department of Public Service (DPS)
- 6. Department of State (DOS) Division of Consumer Protection
- 7. Top Five Categories of Consumer Complaints Received by DOS in 2024:
- 8. How to Seek Assistance
- 9. What are some of the key areas where New York State agencies have focused on protecting consumer finances from deceptive practices?
- 10. Archyde Interview: Sarah Chen on New York’s $245M Consumer Recoveries
New York State agencies, led by Governor Kathy Hochul, have secured more than $245 million in recoveries adn restitution for New Yorkers in 2024. This significant achievement underscores the state’s commitment to robust consumer protection and financial fairness. the funds were recovered through the efforts of the Department of Financial Services (DFS), the Department of Public Service (DPS), and the Department of State’s (DOS) Division of Consumer Protection.
Key Achievements in 2024
- $245 Million Recovered: State agencies secured ample recoveries and restitution for New Yorkers.
- 71,000 Households Assisted: DPS and DOS assisted over 71,000 households with consumer protection matters.
- $17.3 Million Returned by DPS and DOS: An increase of more than 78 percent from $9.7 million in 2023.
Governor Hochul’s commitment
Governor Hochul emphasized the state’s dedication to consumer protection, stating, “The federal goverment might potentially be taking aim at consumer protection regulations, but New York State is doubling down — recovering more than $245 million in 2024.” She further asserted, “I’m fighting to put more money in New Yorkers’ pockets, and that means taking a hard line against fraud, deception and predatory pricing practices that make it harder for families to get by.”
Department of Financial Services (DFS)
The DFS’s Consumer Assistance Unit (CAU) plays a crucial role in safeguarding New Yorkers’ financial interests. In 2024, the CAU addressed over 46,000 complaints, directly engaging with consumers to resolve disputes, investigate claim denials, and ensure financial institutions are held accountable.
Emerging Financial Protections: Governor Hochul’s FY26 Executive Budget prioritizes addressing emerging risks in Buy Now, Pay Later (BNPL) programs and unfair overdraft fees.
- Buy Now, pay Later (BNPL) Oversight: With BNPL usage surging, the budget aims to bring BNPL providers under DFS oversight to ensure transparency and fair lending practices. U.S. consumers spent $18.2 billion through BNPL programs during the 2024 holiday season.
- Curbing Unfair Overdraft Fees: DFS has proposed new regulations to prevent consumers from being charged for minor transactions and to provide timely notifications, enhancing transparency and fairness in banking.
New York State Department of Financial Services Superintendent Adrienne A.Harris said, “At DFS, protecting consumers is at the core of what we do. Recovering record amounts for New Yorkers each year reflects our commitment to ensuring fairness,transparency,and accountability in financial services.”
Department of Public Service (DPS)
The department of Public Service (DPS) actively addresses consumer complaints related to utility services. In 2024, DPS handled approximately 20,000 consumer inquiries and complaints and returned nearly $13 million in utility consumer refunds, marking a 75 percent increase from 2023. The Public Service Commission levied $23.5 million in financial penalties against five utilities failing to meet customer service standards.
- Financial penalties: The public Service Commission levied $23.5 million in financial penalties against five utilities for failing to meet 2023 customer service standards.
- Closing the Unclaimed Funds Loophole: Governor Hochul has proposed closing a loophole that does not obligate Energy Service Companies to return unclaimed funds to New Yorkers.
New York State Public Service Commission Chair Rory M. Christian said, “The PSC and Department of Public Service are committed to protecting New Yorkers by ensuring all industries we regulate are in full compliance with consumer protection laws and regulations. Inaccurate utility billing can lead to significant customer overcharges, which the Department works to get refunded back to affected customers.”
Department of State (DOS) Division of Consumer Protection
The New York State Division of Consumer Protection offers education, advocacy, and mediation services to empower consumers in making informed decisions and protecting themselves from fraudulent and unfair business practices. In 2024, DOS assisted nearly 29,000 New York households, recovering more than $2.3 million for consumers.
Key Initiatives by DOS:
- Do Not Call Enforcement: Settlements with telemarketing companies resulted in the collection of nearly $1.2 million in fines.
- Consumer Advocacy: Represented consumers in 23 utility rate and policy proceedings.
Top Five Categories of Consumer Complaints Received by DOS in 2024:
- Refunds/Store Policy: Complaints related to refunds and store policies, including return policies and restocking fees.
- Orders/Deliveries: Issues with order fulfillment, missing items, incorrect deliveries, and late or non-shipped items.
- Merchandise/Product: Complaints about products that did not meet expectations.
- Credit Cards: Erroneous charges, billing discrepancies, card benefits, and illegal surcharges.
- Travel: Problems with travel reservations, agents, accommodations, and transportation.
To bolster consumer protection, governor Hochul has proposed legislation requiring a minimum 30-day return window for retail products and mandating disclosure of price setting based on personal data for online shoppers. The governor also seeks to simplify and ensure transparency and fairness in cancellation processes.
New York State Secretary of State Walter T. Mosley said, “The Department of State’s Division of Consumer Protection is proud to have helped return over $2.3 million to New Yorkers and will continue to protect consumers from deceptive and risky business practices in goods and services. We’re working every day to educate the public about the latest scams, how to shop smart to protect their money and stay informed of their rights in order to create a more economically affordable and equitable New York.”
How to Seek Assistance
New Yorkers seeking consumer assistance can visit dos.ny.
What are some of the key areas where New York State agencies have focused on protecting consumer finances from deceptive practices?
Archyde Interview: Sarah Chen on New York’s $245M Consumer Recoveries
Archyde News: Sarah, thank you for joining us today. New York State has recovered over $245 million for consumers in 2024. That’s a important figure. As a Senior Policy Advisor specializing in consumer protection, can you give us some insight into the main drivers behind this achievement?
Sarah Chen: Thanks for having me. Absolutely. This substantial recovery is really a testament to the coordinated efforts of several state agencies – the Department of Financial Services (DFS), the Department of Public Service (DPS), and the Department of State’s (DOS) Division of Consumer Protection. Each plays a vital role in identifying, investigating, and addressing issues that harm New Yorkers’ financial well-being. Key areas include aggressive enforcement against deceptive practices, especially concerning emerging issues like Buy Now, Pay later programs and unfair utility billing practices. These issues needed to be tackled head-on to achieve an overall positive result.
Archyde News: The report highlights increased scrutiny of Buy Now, pay Later (BNPL) programs. Why is this such a critical area of focus right now?
Sarah Chen: BNPL has exploded in popularity. while convenient,it can also be a slippery slope for consumers if not managed responsibly. The rapid growth, highlighted by the $18.2 billion spent during the holiday season alone, signals a need for better oversight. We’re concerned about clarity in terms and conditions, potential for accumulating debt, and the overall affordability for vulnerable populations.Bringing BNPL providers under DFS oversight is crucial to ensure fair lending practices and protect consumers from predatory terms.
Archyde News: The Department of Public Service (DPS) saw a 75% increase in utility consumer refunds. What contributed to this increase, and what ongoing measures are in place to prevent inaccurate billing?
Sarah Chen: The increase in refunds is largely due to a more proactive approach in identifying and rectifying billing inaccuracies. The DPS is now more rigorous in auditing utility companies and holding them accountable for adhering to customer service standards. As the Public Service Commission Chair, Rory M. Christian, mentioned, inaccurate billing can burden customers significantly. Ongoing measures include enhanced monitoring systems,tougher penalties for non-compliance,and better communication channels for consumers to report discrepancies. Additionally, closing the unclaimed funds loophole related to energy Service Companies will help ensure that money rightfully belonging to consumers is returned.
Archyde News: The Division of Consumer Protection tackled a wide range of complaints, with “Refunds/Store Policy” ranking highest. Are there plans to strengthen consumer rights regarding returns and refunds?
Sarah Chen: Absolutely. Governor Hochul has proposed legislation geared towards enhancing protections around returns and pricing transparency. Requiring a minimum 30-day return window for retail products and mandating disclosure of price setting based on personal data are significant steps forward.These measures aim to address common pain points for consumers and ensure businesses operate fairly.
Archyde news: This is all vrey encouraging. Looking ahead, what’s the single most significant thing New Yorkers can do to protect themselves from scams and deceptive buisness practices?
Sarah Chen: Data is power. Stay informed about the latest scams and deceptive practices by regularly visiting the DOS Division of Consumer Protection website (dos.ny.gov/consumer-protection). understand your rights as a consumer, be wary of unsolicited offers, and always read the fine print before making any purchase or agreement.If something sounds too good to be true, it probably is.And, if you believe you’ve been a victim of fraud or unfair business practices, report it immediately.
Archyde News: with all these initiatives in play, what’s one thing you predict will have the biggest impact on consumer finances in New York over the next year?
Sarah chen: I believe the increased oversight of buy Now, Pay Later programs will have a significant positive impact. By establishing clear rules and regulations, we can help New Yorkers avoid accumulating needless debt and ensure they’re making informed financial decisions. This is about empowering consumers to use these tools responsibly and protecting them from potential pitfalls.
Archyde News: Sarah Chen,thank you so much for your time and insights. It’s been incredibly informative.
Sarah Chen: My pleasure. Thank you.
Archyde News: We invite our readers to share their thoughts and experiences in the comments below. Have you been affected by any of these consumer protection issues? What are your biggest concerns regarding financial fairness in today’s market?
