New York State Creates New Consumer Debt Collection Rules

On September 16, 2014, New York courts announced rules banning collecting consumer debts which were: a.) not incurred; b.) previously paid; or c.) subject to statute of limitations defenses.

The new rules require:

a.) creditors submitting affidavits for default judgments with detailed proof;

b.) that default applications contain the debtor's original credit agreement, a detailed accounting of each stop in the debt's chain of ownership and documentation that identifies the target of the default judgment as the correct debtor;

c.) an affidavit from the creditor's attorney that the statute of limitations has not expired;

d.) verification of the efforts made to notify the debtor of the impending default.

Click here to read Wayne Greenwald's full article...