New York Court System Proposes Consumer Debt Collection Reforms


On April 30, the New York Unified Court System proposed new rules for consumer credit collection cases. If adopted, the rules would (i) require creditors to submit affidavits based on personal knowledge that meet the substantive and evidentiary standards for entry of default judgments under state law; (ii) expand to all state courts an existing requirement applicable to cases in New York City courts that an additional notice of a consumer credit action be mailed to debtors; and (iii) provide unrepresented debtors with additional resources and assistance. The proposal attaches copies of the potential affidavits, which the court system states are necessary to address so-called “robosigning.” Last October, New York State Department of Financial Services Superintendent Benjamin Lawsky urged these and other changes as part of the court’s initial public comment period. Comments on the proposal are due May 30, 2014.


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