A federal district court judge in the Southern District of New York ruled late last week that three credit unions had successfully established a likelihood of success on their claims that the retroactive application of New York’s recently-passed rate reduction law constitutes a regulatory taking in violation of the U.S. Constitution and preliminarily enjoined state sheriffs’ offices from enforcing the law.… Continue Reading
judgment
Credit unions seek injunction blocking enforcement of NY law reducing debt judgment interest rate
By Elanor A. Mulhern on
Posted in State regulation
Three credit unions have filed a federal class action lawsuit in the Southern District of New York seeking to halt the enforcement or implementation of New York’s recently passed S.B. 5724A which would retroactively and prospectively lower the statutory annual interest rate on consumer debt judgments from 9% to 2%. The credit unions allege that the change in rates – set to take effect April 30, 2022 – violates the United States Constitution’s due process and property protections and should be struck down in its entirety.… Continue Reading
New York reduces judgment rate on consumer debts to 2%
By Ballard CFS Group on
Posted in State regulation, Usury
On December 31, 2021, New York Governor Hochul signed into law S5724-A which reduces the annual rate of interest on judgments arising out of a consumer debt where the defendant is a natural person from 9% to 2%. The laws take effect 120 days from the Governor’s signature, which is April 30, 2022.… Continue Reading