New York State Court Proposes Debt Collection Rules

more+
less-

Courts in New York proposed amendments to court rules aimed at “reform[ing]” consumer credit collection cases in order to “prevent unwarranted default judgments and ensure a fair legal process.” The amendments would require that creditors submit “affidavits of facts” based on personal knowledge detailing the date and amount of the last payment and the itemization of how the amount was calculated. The affidavits of facts must include a copy of the original credit agreement. The amendments would require creditors to submit affidavits of the non-expiration of the statute of limitations and debtors without representation would be given resources and assistance in responding to debt collection complaints. The amendments also contain requirements for debt buyers bringing collection actions in court. Comments on the amendments are due May 30, 2014.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this informational piece (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

 

Topics:  Affidavits, Amended Regulation, Creditors, Debt Collection, Default Judgment

Published In: Civil Procedure Updates, Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Goodwin Procter LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »