STATE ASSEMBLYWOMAN JENIFER RAJKUMAR UNVEILS “FEE RELIEF ACT” TO END SKYROCKETING INTEREST ON FINES

 

LANDMARK BILL HALTS SKY-HIGH INTEREST ON UNPAID FEES, FINES, AND TOLLS, PROTECTING NEW YORKERS FROM FINANCIAL FREEFALL

Assemblywoman Jenifer Rajkumar today announced the introduction of the Fee Relief Act (A10912), sweeping legislation to protect New Yorkers and their hard-earned money from penalties that transform a few hundred dollars in unpaid State fees, tolls, or fines into crippling debt in the tens of thousands.

Rajkumar’s bill takes direct aim at astronomical interest rates and service fees on such debts, which quickly exceed the cost of the original amount owed. Such debt may not even be the result of intentional nonpayment, but stem from State errors such as misreading a car’s license plate or pursuing the former owner of a vehicle. Compounding the problem, interest can begin accruing after just 30 days, before someone may even discover they owe anything. If left unpaid long enough, the debt could even become a criminal matter.

Horror stories have included drivers racking up $20,000 to $100,000 over a few thousand dollars in tolls unpaid due to issues like a defective E-ZPass, a transponder not matching the plate registered, or tolls not paid by a relative who used the car. In one especially alarming case, a Brooklyn man saw his home foreclosed on due to owing $20,000 for $600 in unpaid water bills.

The Fee Relief Act ends these debt traps by setting reasonable limits on penalties. The bill caps interest to just above the rate of inflation, eliminates collection fees, and requires a full year before interest accrues.

Assemblywoman Rajkumar said, “Right now, New Yorkers who are doing everything right are still getting crushed by a system where small debts spiral into life-altering burdens. A $200 ticket can become thousands of dollars before you even know it exists. That’s not debt collection: that’s extortion. The government should never profit from confusion or delay.  This changes with my Fee Relief Act. My bill puts the brakes on runaway interest, ends these unfair fee escalations, and ensures that working families can pay what they owe without being buried by it. It’s time we stop letting debt grow faster than people’s ability to get back on their feet.”