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
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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
New York City amends debt collection regulations to include language proficiency requirements
By Christine Emello & Ballard CFS Group on
New debt collection rules creating requirements relating to consumers’ language proficiency are set to take effect in New York City on June 27, 2020. The new rules amend NYC’s existing debt collection regulations applicable to creditors collecting their own debts as well as third-party collection agencies. Accordingly, the new rules appear to have implications for creditors and debt collectors alike with respect to any collection activities involving NYC consumers.… Continue Reading
Final regulations implementing New York student loan servicing law effective Oct. 16
By John L. Culhane, Jr. on
Final regulations adopted by the New York Department of Financial Services (NYDFS) to implement the state’s new student loan servicing law became effective on October 16, 2019 upon the publication by the NYDFS of a Notice of Adoption in the State Register. The new law, known as Article 14-A, was enacted on April 1, 2019. … Continue Reading