New York recently enacted Senate Bill (SB) 153, the Consumer Credit Fairness Act, significantly impacting debt collection lawsuits filed by creditors or debt collectors. A few of the key amendments include:
- Most collection lawsuits arising out of a consumer credit transaction will now have a 3-year statute of limitations rather than 6 years.
- Extensions and revivals of statutes of limitations based on subsequent payment, written or oral affirmation, and other activity on the debt will now be prohibited.
- A specified “additional notice of lawsuit” must be filed by the plaintiff for the court to mail to the consumer when a collection against a consumer arising out of a consumer credit transaction is filed.
- Third-party debt collectors must submit supporting affidavits from the original creditor and any prior assignors, with a witness to verify the debt’s chain of title.
- Complaints must include the name of the original creditor, the date and amount of the last payment, and the last four digits of the account number.
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