New York Drastically Changes Debt Collection Lawsuits | Weiner Brodsky Kider PC

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New York recently adopted Senate Bill (SB) 153, the Consumer Credit Equity Act, which has a significant impact on debt collection lawsuits filed by creditors or debt collectors. Here are some of the main amendments:

  • Most collection lawsuits arising from a consumer credit transaction will now have a limitation period of 3 years instead of 6 years.
  • Extensions and repeats of limitation periods on the basis of subsequent payment, written or oral affirmation and other debt activity will now be prohibited.
  • A specified “further notice of suit” must be filed by the plaintiff for the court to send to the consumer when a consumer recovery resulting from a consumer credit transaction is filed.
  • Third party debt collectors must submit affidavits in support of the original creditor and any previous assignor, with a witness to verify the chain of title to the debt.
  • Complaints should include the name of the original creditor, the date and amount of the last payment and the last four digits of the account number.

SB 153 comes into effect on May 7, 2022, with the exception of the prohibition on reactivation or extension of the limitation period, which comes into effect on April 7, 2022.


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