Guest usctrojanalum

NY Passes "Consumer Credit Fairness Act"

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Guest usctrojanalum

Effective January 1st 2011

Key points:

:eek: Statute of Limitations is reduced from 6 years to 3 years on all consumer credit transactions. After 3 years have expired the debt is considered extinguised, and it can no longer be collected on. Collection includes but is not limited to phone calls and letters from a collection agency.

:p Additional mailing of notice in an action arising out of a consumer credit transaction. At the time of filing with the clerk of the proof of service of the summons and complaint, the plaintiff is to submit a postage paid envelope addressed to the defendant. This notice must include:

- A lawsuit has been filed against you based on money for an unpaid credit card or other consumer credit debt

- You should go to the courthouse as soon as you receive this letter.

- If you do not respond your wages may be garnished, your personal property may be taken and part or all of your bank account may be garnished.

This letter must be sent in English and Spanish. (I actually hate this provision, this is America there is no reason for our legal system to require notices in Spanish)

:-) Consumer credit actions must now have in the complaint the original creditor, the last four digits or the original account number, the date and amount of last payment, a chain of title in the account, and a breakdown of the amount including a breakdown of principal, interest, and attorneys fees.

:p For debt purchasers - an affidavit from the OC is required stating the amount of debt and the date of default they must also provide an affidavit of sale, also an affidavit from a representative from each JDB if the debt has been sold multiple times.

And boooom goes the dynamite. Good job NYS. Except for the part about notices being in Spanish. I'm Italian, I do not want any notices sent to me in Spanish.

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Isn't there a law in NY that prohibits banks from accepting judgment orders on bank accounts with less than $2,500 in them?

As for that 3 year SOL, maybe Capital One will relocate to Ohio and force cardholders to accept Ohio's 15 year SOL. :p

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Guest usctrojanalum
Isn't there a law in NY that prohibits banks from accepting judgment orders on bank accounts with less than $1,700 in them?

FYP,

and yes that was passed in 2009. But an indirect consequence of that law is that wage garnishments have absolutely gone through the roof. And protections and exemptions on wage garnishments here are terrible. 10% of gross anything greater than $217.50.

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As for that 3 year SOL, maybe Capital One will relocate to Ohio and force cardholders to accept Ohio's 15 year SOL. :p

:complainer: Are you laughing at my pain?!?! :shock:

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:complainer: Are you laughing at my pain?!?! :shock:

If you want pain, read the GA debt collection laws.

Short of them being caught beating me to a pulp in public view, the law offers me no protection from them.

:lol:

Edited by jkg3

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Effective January 1st 2011

Key points:

:eek: Statute of Limitations is reduced from 6 years to 3 years on all consumer credit transactions. After 3 years have expired the debt is considered extinguised, and it can no longer be collected on. Collection includes but is not limited to phone calls and letters from a collection agency.

:p Additional mailing of notice in an action arising out of a consumer credit transaction. At the time of filing with the clerk of the proof of service of the summons and complaint, the plaintiff is to submit a postage paid envelope addressed to the defendant. This notice must include:

- A lawsuit has been filed against you based on money for an unpaid credit card or other consumer credit debt

- You should go to the courthouse as soon as you receive this letter.

- If you do not respond your wages may be garnished, your personal property may be taken and part or all of your bank account may be garnished.

This letter must be sent in English and Spanish. (I actually hate this provision, this is America there is no reason for our legal system to require notices in Spanish)

:-) Consumer credit actions must now have in the complaint the original creditor, the last four digits or the original account number, the date and amount of last payment, a chain of title in the account, and a breakdown of the amount including a breakdown of principal, interest, and attorneys fees.

:p For debt purchasers - an affidavit from the OC is required stating the amount of debt and the date of default they must also provide an affidavit of sale, also an affidavit from a representative from each JDB if the debt has been sold multiple times.

And boooom goes the dynamite. Good job NYS. Except for the part about notices being in Spanish. I'm Italian, I do not want any notices sent to me in Spanish.

S T A T E O F N E W Y O R K

________________________________________________________________________

7558--A

2009-2010 Regular Sessions

I N A S S E M B L Y

April 14, 2009

___________

Introduced by M. of A. WEINSTEIN -- read once and referred to the

Committee on Judiciary -- committee discharged, bill amended, ordered

reprinted as amended and recommitted to said committee

AN ACT to amend the civil practice law and rules, in relation to consum-

er credit transactions

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-

BLY, DO ENACT AS FOLLOWS:

1 Section 1. Short title. This act shall be known and may be cited as

2 the "consumer credit fairness act".

3 S 2. Subdivision 2 of section 213 of the civil practice law and rules,

4 as amended by chapter 709 of the laws of 1988, is amended to read as

5 follows:

6 2. an action upon a contractual obligation or liability, express or

7 implied, except as provided in section two hundred thirteen-a OR TWO

8 HUNDRED FOURTEEN-F of this article or article 2 of the uniform commer-

9 cial code or article 36-B of the general business law;

10 S 3. The civil practice law and rules is amended by adding a new

11 section 214-f to read as follows:

12 S 214-F. CERTAIN ACTIONS ARISING OUT OF CONSUMER CREDIT TRANSACTIONS

13 TO BE COMMENCED WITHIN THREE YEARS. AN ACTION ARISING OUT OF A CONSUMER

14 CREDIT TRANSACTION WHERE A PURCHASER, BORROWER OR DEBTOR IS A DEFENDANT

15 MUST BE COMMENCED WITHIN THREE YEARS, EXCEPT AS PROVIDED IN SECTION TWO

16 HUNDRED THIRTEEN-A OF THIS ARTICLE OR ARTICLE 2 OF THE UNIFORM COMMER-

17 CIAL CODE OR ARTICLE 36-B OF THE GENERAL BUSINESS LAW. WHEN THE PERIOD

18 WITHIN WHICH AN ACTION MAY BE COMMENCED UNDER THIS SECTION HAS EXPIRED,

19 THE RIGHT TO COLLECT CONSUMER CREDIT DEBT IS EXTINGUISHED AS WELL AS THE

20 REMEDY.

21 FOR PURPOSES OF THIS SECTION, "THE RIGHT TO COLLECT CONSUMER CREDIT

22 DEBT" SHALL MEAN ANY ATTEMPTS BY THE CREDITOR, THIRD PARTY PURCHASER, OR

23 OTHER AUTHORIZED THIRD PARTY TO COLLECT SUCH DEBT INCLUDING, BUT NOT

24 LIMITED TO, CALLS, MAIL OR OTHER ATTEMPTS TO COLLECT.

25 S 4. The civil practice law and rules is amended by adding a new

26 section 306-c to read as follows:

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD11087-04-9

A. 7558--A 2

1 S 306-C. ADDITIONAL MAILING OF NOTICE IN AN ACTION ARISING OUT OF A

2 CONSUMER CREDIT TRANSACTION. 1. AT THE TIME OF FILING WITH THE CLERK OF

3 THE PROOF OF SERVICE OF THE SUMMONS AND COMPLAINT IN AN ACTION ARISING

4 OUT OF A CONSUMER CREDIT TRANSACTION, THE PLAINTIFF SHALL SUBMIT TO THE

5 CLERK A STAMPED ENVELOPE ADDRESSED TO THE DEFENDANT TOGETHER WITH A

6 WRITTEN NOTICE IN CLEAR TYPE OF NO LESS THAN TWELVE-POINT IN SIZE, IN

7 BOTH ENGLISH AND SPANISH, AND CONTAINING THE FOLLOWING LANGUAGE:

8 NOTICE OF LAWSUIT

9 (DATE)

10 (NAME OF COURT)

11 (COUNTY)

12 (STREET ADDRESS, ROOM NUMBER)

13 (CITY, STATE, ZIP CODE)

14 (NAME OF DEFENDANT)

15 (ADDRESS OF DEFENDANT)

16 PLAINTIFF:__________________________________

17 DEFENDANT:__________________________________

18 NAME OF ORIGINAL CREDITOR, UNLESS SAME:______________________________

19 INDEX NUMBER:_______________________________

20 ATTENTION: A LAWSUIT HAS BEEN FILED AGAINST YOU CLAIMING THAT YOU OWE

21 MONEY FOR AN UNPAID CREDIT CARD, MEDICAL, STUDENT LOAN OR OTHER DEBT.

22 YOU SHOULD GO TO THE COURT CLERK'S OFFICE AT THE ABOVE ADDRESS AS SOON

23 AS POSSIBLE TO RESPOND TO THE LAWSUIT. YOU MAY WISH TO CONTACT AN ATTOR-

24 NEY. IF YOU DO NOT HAVE AN ATTORNEY, HELP IS AVAILABLE AT THE COURT.

25 IF YOU DO NOT RESPOND TO THE LAWSUIT, THE COURT MAY ENTER A JUDGMENT

26 AGAINST YOU. ONCE ENTERED, A JUDGMENT IS GOOD AND CAN BE USED AGAINST

27 YOU FOR TWENTY YEARS, AND YOUR MONEY, INCLUDING A PORTION OF YOUR

28 PAYCHECK AND/OR BANK ACCOUNT, MAY BE TAKEN. ALSO, A JUDGMENT WILL HURT

29 YOUR CREDIT SCORE AND CAN AFFECT YOUR ABILITY TO RENT A HOME, FIND A

30 JOB, OR TAKE OUT A LOAN.

31 YOU CANNOT BE ARRESTED OR SENT TO JAIL FOR OWING A DEBT.

32 IT IS IMPORTANT THAT YOU GO TO THE COURT CLERK'S OFFICE LISTED ABOVE AND

33 BRING THIS NOTICE WITH YOU. ADDITIONAL INFORMATION CAN BE FOUND AT THE

34 COURT SYSTEM WEBSITE AT: WWW.COURTS.STATE.NY.US

35 2. THE FACE OF THE ENVELOPE SHALL BE ADDRESSED TO THE DEFENDANT AT THE

36 ADDRESS AT WHICH PROCESS WAS SERVED, AND SHALL CONTAIN THE DEFENDANT'S

37 NAME, ADDRESS (INCLUDING APARTMENT NUMBER) AND ZIP CODE. THE FACE OF THE

38 ENVELOPE ALSO SHALL STATE THE APPROPRIATE CLERK'S OFFICE AS ITS RETURN

39 ADDRESS.

40 3. THE CLERK PROMPTLY SHALL MAIL TO THE DEFENDANT THE ENVELOPE

41 CONTAINING THE ADDITIONAL NOTICE SET FORTH IN SUBDIVISION ONE OF THIS

42 SECTION. NO DEFAULT JUDGMENT BASED ON THE DEFENDANT'S FAILURE TO ANSWER

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Guest usctrojanalum

I really hate the notice in Spanish part lol I consider it an insult.

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This is going to sound really silly, but does this mean that on 1/1/11 - I can breathe a sigh of relief? Many of my negative tradelines are in the 4+ year range........? Would I just send letters to both the CB's and OC's explaining this?

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You are going to have to keep bumping this along as this bill will die a slow painful death in committee. It was only passed by the assembly, so it is not law as far as I can discern.

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You are going to have to keep bumping this along as this bill will die a slow painful death in committee. It was only passed by the assembly, so it is not law as far as I can discern.
I think that's right. It appears stuck in committee. A search of the NY law comes up empty.

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Consumer Credit Fairness Act: Bill is stuck in Senate Codes and Senate Finance Committees. I can't recall if 2010 voting session is over. If it is, 2011 for further action on the bill.

Too Bad, but that's Albany!

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It is interesting that laws can go year to year in NY without ever dying. Here in MN, if the law is not passed at all during the biennium, it is considered dead and has to be reconsidered by both houses once the newly elected legislators take over.

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Geeezz...when will this piece of legislature ever see the light of day ?

Just as soon as they strip all the teeth from it and turn into another paper tiger.

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:roll:

Isn't there a law in NY that prohibits banks from accepting judgment orders on bank accounts with less than $2,500 in them?

As for that 3 year SOL, maybe Capital One will relocate to Ohio and force cardholders to accept Ohio's 15 year SOL. :p

You know they will see that here:p

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so this stupid thing has not passed yet?

ugh!! disclaimer alert, where is it. i thought it said effective January 1, 2011 i was wondering why i havent seen it

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