NY Assembly “Champerty” Debt Relief Legislation Fails to Come to a Vote Before Adjourning

The New York State Assembly failed to vote on legislation that would stop "vulture" funds, protect US taxpayers and pensions as well as help reduce food and fuel prices. The “Champerty Fix Act” (S.1477, A.643-A) passed the Senate last week with an overwhelming majority and had votes to pass in the Assembly if it was allowed to go to the floor.

“We are very concerned that Speaker Heastie decided to keep the bill from going to the floor for a vote,” said Eric LeCompte, Executive Director of Jubilee USA Network. “While he has the power to bring legislators back, he bowed to special interests instead of listening to his constituents.”

The Champerty Fix Act prevents predatory hedge funds from purchasing distressed debt with the intent to litigate for full payment instead of constructively engaging in debt negotiations. The practice exploits legitimate investors, US pensions, US taxpayers and countries facing debt crisis.

A coalition of religious, business, union, anti-poverty, environmental, development and diaspora organizations support the legislation. The average developing country spends more than 45% of their revenue repaying debt.

"We won't give up. Passing this legislation is no longer a question of if it will pass, it's a matter of when," stated LeCompte who led the Jubilee coalition efforts.