New York State Courts Chief Judge Jonathan Lippman Tuesday announced the formal adoption of new rules aimed at preventing default judgments in credit card debt collection cases. Lippman claimed that the reforms “reflect the most comprehensive effort by a court system nationally to ensure a fair legal process in consumer debt litigation.”
The new rules, announced in May, focus on the documentation presented by creditors and debt collectors in court actions seeking to recover debt. The rules were written primarily with debt buyers in mind.
“While creditors have every right to collect what is legally owed to them, the Judiciary has an obligation to prevent inequitable debt collection practices in the courts,” said Judge Lippman. “The adoption by the Unified Court System of these rigorous new requirements will undoubtedly avert unwarranted default judgments in consumer debt cases and serve to protect the rights of all New Yorkers, including some of our most vulnerable citizens.”
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