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New York Assemblywoman Jenifer Rajkumar has introduced the Fee Relief Act (A10912), legislation aimed at protecting New Yorkers from mounting penalties and interest charges that can turn relatively small unpaid state fees, tolls, or fines into overwhelming debt.
According to a statement from her office, the proposed legislation targets excessive interest rates and service fees that often cause debts to grow far beyond the original amount owed. The statement noted that many such cases do not stem from intentional nonpayment, but from administrative issues such as incorrectly read license plates or efforts to collect fees from a former vehicle owner.
The statement further emphasized that interest can begin accruing within just 30 days, often before individuals are even aware they owe money. In some cases, prolonged nonpayment can eventually lead to criminal consequences.
“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,” Rajkumar said.
“This changes with my Fee Relief Act,” she added. “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.”
According to the statement, some New Yorkers have accumulated debts ranging from $20,000 to $100,000 over a few thousand dollars in unpaid tolls caused by issues such as defective E-ZPass devices, mismatched transponder registrations, or tolls left unpaid by relatives using the vehicle.
The statement also cited a case in which a Brooklyn homeowner reportedly faced foreclosure over $20,000 in debt tied to an original unpaid water bill of $600.
The Fee Relief Act seeks to limit such escalating penalties by capping interest rates slightly above inflation, eliminating collection fees, and requiring a one-year grace period before interest begins to accrue, according to the statement.
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