Assembly Approves Bill That Curbs Abusive Debt Collection Practices

The New York State Assembly passed the Consumer Credit Fairness Act, a bill designed to protect low-income and elderly New Yorkers from aggressive debt collection practitioners.

According to a report by the Post Star News, the primary purpose of the Consumer Credit Fairness Act, introduced by Assemblywoman Helene Weinstein, is to curb abusive debt collection lawsuits by the following means:

• Requiring notice of a pending consumer credit action to be mailed to the defendants by the clerk of the court;
• Requiring court filings to include more information about the debt targeted in a lawsuit, such as identifying the debt or account and providing proof that the debt is owed to the plaintiff;
• Lowering the statute of limitations for consumer credit transactions from six years to three years, and eliminating the right to collect the debt once the statute of limitations is expired; and
• Terminating the ability of debt buyers to sue on expired debt.

Weinstein explained the importance of the legislation as well as its impact on domestic violence victims.

“Abusive debt collection lawsuits exploit gaps in our state’s laws. This bill takes important steps to close these loopholes to protect consumers and helps to address the long-term impact of economic abuse, including identity theft, which is often suffered by domestic violence victims at the hands of their abusers.”

Weinstein’s work on the bill received high praise from Claudia Wilner, an attorney at NEDAP (Neighborhood Economic Development Advocacy Project) who expressed hopes that it will be passed in the New York State Senate.

“We now call upon the Senate to pass the CCFA this legislative session to put an end to abusive debt collection practices. New Yorkers, particularly those who are low-income, elderly, disabled or domestic violence survivors, have been harassed by these unscrupulous debt collectors for far too long.”