The New York Consumer Credit Fairness Act has adopted significant changes that could have an impact on New York residents struggling with consumer debt. These consumer-friendly changes will determine if there is legal remedy available for a creditor against a debtor. Here are a few of the most significant changes:
- The period a creditor is permitted to bring a debt collection (known as the statute of limitations) has been reduced from 6 years to 3 years as of April 2022.
- Payments made towards a debt after the three- year period has expired will no longer extend or revive the statute of limitations.
- If the current account owner is not the original creditor, the current account owner must provide additional documents confirming when the sale(s) of debt took place, name(s) of previous owners of the accounts and dates of assignments to that owner, and the amount due at the time of the sale by the original creditor.
If you have any questions about the new laws, please feel free to give us a call