The New York legislature passed many new laws in 2022, some of which directly affect New York debt collection.
We reported on many of these laws including:
- Cutting the statute of limitations in half to collect medical and consumer debt from six years to three years.
- Decreasing the legal rate of interest on consumer claims from 9% to 2%.
- Putting an end to the use of wage garnishments (income executions) in New York to collect medical judgments.
- Prohibiting a creditor from entering or enforcing a medical judgment by placing a lien against a debtor’s primary residence.
- The passing of the Consumer Credit Fairness Act, which requires creditors attach a list of additional documents to the pleading when filing suit within New York to recover monies owed as a result of consumer credit transactions.
- The introduction of Senate bill S2632 prohibiting confessions of judgment as part of the necessary documents when buying or selling financial services or products to consumers.
- The signing of a law preventing colleges from withholding student transcripts due to unpaid debts. Initially, the law first prohibited withholding transcripts for SUNY and CUNY students but expanded to include all higher education institutions.
Laws or Bills Introduced in 2022 That Affect Debt Collection in New York
The following are the laws or bills introduced in 2022 that affect New York debt collection.
- Bill A3081: Relates to prohibiting the registration of mortgages in default prior to the filing of a notice of pendency.
- Bill S9348: Directs the superintendent of financial services to study overdraft fees.
- Bill S9035: Granted New York City marshals power equal to sheriffs when it comes to executing on Supreme and Family court money judgments.
- Bill S7780: New York will allow for permanent access to electronic notarization, eliminating the need to run to an office or bank to find a notary. Electric notarization is extremely helpful when signing an affidavit in support of your debt collection claim.
- Bill S9466: Increased the number of judges in Supreme and Family courts, allowing for expedited appearances, hearings, and the granting of decisions and judgments.
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