TESTIMONY
Susan Kassapian on the Decline of Consumer Protection for Homeowners and Tenants
5:17:59
·
4 min
Susan Kassapian discusses how changes at the Office of Administrative Trials and Hearings (OATH) since 2016 have adversely affected consumer protection in New York City.
- Kassapian outlines a policy change at OATH in 2016 that required attorneys for consumer restitution hearings, previously unnecessary, leading to the Department of Consumer Affairs ceasing to bring such cases.
- She highlights the lack of enforcement on home improvement contracts and an underutilized $15 million fund for consumer restitution, expressing deep concern for New Yorkers left without necessary protections.
- Kassapian criticizes OATH's policies for not allowing homeowners and apartment owners to present their own cases, identifying it as a violation of OATH's rules.
- She calls for immediate action to enable consumer homeowners to present cases again and for better utilization of the funds intended for restitution and fines.
- Kassapian describes the situation as 'outrageous' and a clear failure in the city's duty to provide consumer redress, urging the resolution of these issues to restore consumer protection.
Susan Kassapian
5:17:59
Thank you so much.
5:18:01
I have worked for the city for 35 plus years.
5:18:05
I was deputy commissioner at 0 for 6, retired in January of 22, and before that.
5:18:11
I was general counsel and assistant commissioner, principal and ministry of law judge for DCA when DCA was DCA.
5:18:21
I appreciated chief judge Rasim Rockman's comments about Otomission being to prioritize New York's access to justice, but that is not happening in a huge area of concern which I'm bringing to your committee's attention.
5:18:38
In August of 2016, the jurisdiction of hearing consumer affairs cases came to oath.
5:18:45
That's when I also came to oath.
5:18:48
And unfortunately, a decision was made.
5:18:51
To tell consumer affairs that they could no longer bring consumer restitution hearings.
5:18:58
To oath without the signing an attorney to each and every case.
5:19:01
That had never been done for 40 years.
5:19:03
For 40 years, The general council's office drafted the summons, and the consumer presented their own case.
5:19:09
And it worked just fine.
5:19:11
What happened was after a year, Consumer affairs no longer had enough attorneys to bring those cases, and they also had a second mission, the Worker Protection piece, So they stopped bringing those hearings.
5:19:24
That means that every single New Yorker who is a homeowner or an apartment owner in this city has no protection.
5:19:31
Zero protection from the Department of Consumer Affairs.
5:19:34
It is an outrage.
5:19:35
They're not enforcing any of the license laws that results in consumer restitution hearings, the most important of which are home improvement contractors.
5:19:44
There's a $15,000,000 fund.
5:19:47
That is not being used.
5:19:48
There should never be more than 2,000,000 because every 2 years the contractors pay into the fund.
5:19:54
There's $15,000,000 because these hearings haven't been heard since November of 2017.
5:20:01
And I have been dealing with consumers who have lost their homes, who have lost their minds because what consumer affairs does is they tell them go to court, take 5 years to go to court.
5:20:12
It takes 1000 of dollars to pay a lawyer.
5:20:15
It's ridiculous.
5:20:16
We are supposed to pursuant to the measure of code provide consumer redress against licenses of the Department of Consumer Affairs.
5:20:25
There are simple hearings to write up and the consumers can present those hearings.
5:20:30
And on the collectability of fines point that councilman Brove brought up, the absurdity is that the funds can pay fines and restitution, not like LLCs that just go out of business and you can't and find them.
5:20:47
This is real city money that the city coffers are not getting, and they can be getting it with legitimate contractors that pay the fines they're ordered.
5:20:58
But if the contractor doesn't pay the fines, they can invade the trust fund the and there's a second trust fund for tow truck companies, that fund is 100 of 1000 of dollars.
5:21:09
That's not being utilized.
5:21:11
It's totally absurd, and it just ends off with the mind blowing absurdity that vigilante consumers are allowed to present cases on idling of engines, and noise complaints, but both will not allow a consumer homeowner to present their own case.
5:21:30
This is in violation of Oath's own hearing division rules.
5:21:34
And I was the deputy commissioner, one of them for the hearing division.
5:21:38
It's outrageous.
5:21:39
It's lasted for over 6 years, it must stop.
5:21:44
The commissioners should talk to each other and these cases need to be on the the docket again, and and and oath cannot afford to lose.
5:21:55
Staff.
5:21:56
When I was the assistant commissioner the deputy commissioner here, we didn't have enough staff attorneys full time then.
5:22:02
So there's no way with the added burden that they can possibly do the work they're supposed to be doing.
5:22:08
No less this work with it, which they refuse to do.
5:22:12
For no reason.
5:22:13
No rule is needed.
5:22:15
Nothing is needed.
5:22:16
Someone just has to say yes.
5:22:19
Thank you so much for listening.
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Anthony Feldmesser, Chapter Leader, United Federation of Teachers (UFT), on the Office of Administrative Trials and Hearings (OATH)'s Non-compliance with Union Negotiations and Remote Work Practices
