The New York state legislature is currently considering a pair of companion bills which would impose detailed notice and records requirements upon student loan servicers. New York Senate bill S5136B, which was passed by the New York Senate earlier this year, and New York House bill A6226B, which is currently under consideration with the New York Legislature’s Consumer Affairs and Protection Committee, would require “creditors and debt collectors” to provide certain written disclosures to borrowers or cosigners of private education loans at the time of the first collection communication (or within five days after the first communication). … Continue Reading
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Credit unions obtain preliminary injunction blocking enforcement of NY law reducing debt judgment interest rate
By Elanor A. Mulhern on
Posted in Litigation and Court Decisions, State regulation
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
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
New York enacts significant changes impacting debt collection lawsuits
By Ballard CFS Group on
Posted in Debt Collection, State regulation
On November 8, 2021, New York Governor Hochul signed into law the “Consumer Credit Fairness Act” (S.153). The Act contains a series of amendments to the New York Civil Practice Law and Rules that significantly impact debt collection lawsuits filed in New York state courts by creditors or debt collectors.… Continue Reading
NYDFS publishes notice of proposed regulation on consumer-like disclosures for commercial financing transactions
By John Sadler & Ballard CFS Group on
On October 20, 2021, the New York Department of Financial Services published a notice in the New York State Register announcing that it has issued a proposed regulation to implement S 5470–B, which requires consumer-like disclosures for “commercial financing” transactions of $2.5 million or less. Comments on the proposal must be submitted by December 19, 2021.… Continue Reading
New York enacts requirements for check processing by banks; Ballard Spahr to hold Sept. 13 webinar on overdraft practices
By Jennifer E. Aguilar on
At the end of last month, former New York Governor Cuomo signed into law a bill that amends the state’s Banking Law to require banks to follow certain check processing practices. The amendments become effective on January 1, 2022.
The new law applies to “consumer checking accounts” offered by “banking institutions.”… Continue Reading
New York enacts commercial financing disclosure law
By John L. Culhane, Jr. on
On December 23, 2020, New York Governor Andrew Cuomo signed into law S 5470–B, which requires consumer-like disclosures for “commercial financing” transactions of $500,000 or less. New York’s commercial financing law (NYCFL) states that it takes effect on the 180th day after becoming law, which is June 21, 2021.… Continue Reading
This week’s podcast: New York City’s Department of Consumer Affairs adopts new language proficiency requirements for debt collections: what you need to know
Recent amendments to NYC’s debt collection rules impose new requirements relating to consumers’ language proficiency. Following an overview, we take a close look at the specific requirements and their applicability to first- and third-party collections, discuss the DCA’s authority, availability of federal preemption, and compliance challenges, and offer thoughts on best compliance practices.… Continue Reading
Industry trade groups send letter to NYC DCA proposing FAQs and related extension of effective date of debt collection language proficiency requirements
By Ballard CFS Group on
Posted in Debt Collection, Regulatory and Enforcement
Several industry trade groups have sent a letter to the New York City Department of Consumer Affairs (DCA) in which they set forth proposed FAQs to assist compliance with the new requirements relating to consumers’ language proficiency that were recently added to NYC’s existing debt collection regulations and request that the effective date of the new requirements be extended until three months after the DCA publishes the FAQs. … Continue Reading
Enforcement grace period expected for amendments to New York City debt collection regulations adding language proficiency requirements
By Ballard CFS Group on
ACA International has reported that after discussions last week with the New York City Department of Consumer Affairs (DCA), the DCA is expected to announce a 60-day enforcement grace period for the new requirements relating to consumers’ language proficiency that were recently added to NYC’s existing debt collection regulations. The new requirements currently are set to take effect on June 27, 2020.… Continue Reading