New Debt Collection Law Passed in New York

A recently-passed law in New York places additional requirements on creditors and collectors that sue consumers for unpaid debts.

By , Attorney

On November 8, 2021, Governor Kathy Hochul signed the Consumer Credit Fairness Act (S.153/A.2382) into law to address predatory debt collection practices in New York. This new law regulates debt collection lawsuits by setting a three-year statute of limitations for most debt collection actions (previously, it was six years) and says a payment on a debt doesn't restart or revive the statute of limitations. It also requires creditors to give consumers detailed information about debt-related lawsuits and provide information about ways to defend against debt collection lawsuits. In addition, complaints (suits) based on consumer credit transactions must include a copy of the underlying contract or loan agreement, or the charge off statement if a cause of action is based on a defaulted credit card.

The statute of limitations provisions go into effect April 7, 2022, while the law's other provisions go into effect 180 days after enactment, on May 7, 2022.

If a collector or creditor violates the law, you can file a complaint with the New York Bureau of Consumer Frauds & Protection, lodge a complaint with the Consumer Financial Protection Bureau (CFPB), or file a lawsuit. To get help initiating a lawsuit and to learn more about your options, talk to a debt relief lawyer.

Effective date: April 7, 2022, May 7, 2022