New York Assembly Passes Debt Collection Bill; Also Lowers Statute of Limitations

The New York State General Assembly Tuesday passed a bill titled the Consumer Credit Fairness Act which significantly restricts the use of the legal collection channel in the state. In addition to a number of new requirements for bringing debt collection lawsuits, the bill would cut in half the statute of limitations in the state.

“There is an epidemic of unfair debt collection lawsuits in New York State,” said Assembly Speaker Sheldon Silver. “In many instances, these actions are brought against low and moderate income New Yorkers who are not aware a lawsuit has been filed against them, leaving them with little recourse and ruining their credit for many years. Unfortunately, the justice system is being abused by unscrupulous third party debt buyers and harming vulnerable New Yorkers. This bill would institute several measures to address these abusive debt collection practices and combat this menace.”