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Consumer Credit Fairness Act clears state Assembly

ALBANY – a legislative package intended to ensure greater fairness in the debt collection process by informing debtors of their rights, enacting the Consumer Credit Fairness Act and curbing abusive debt collection practices.

The Act would codify and amplify a recent court ruling for default judgments. Additionally, the act would:

  • require notice of a pending consumer credit action to be mailed to the defendants by the clerk of the court;
  • require court filings to include specific information about the debt, such as the contract and a chain of title for the debt;
  • make a uniform three-year statute of limitations for consumer debt and eliminate the right to collect the debt once the statute of limitations expires;  
  • require debt buyers to plead that a suit is within the statute of limitations.

Attorney General Eric Schneiderman praised passage

“I applaud the Assembly for passing the Consumer Credit Fairness Act, which will ensure due process protections for consumers when debt collectors attempt to collect on debt by using the judicial process,” Schneiderman said in a statement released Friday. “If it becomes law, this legislation will provide important notice to consumers that a suit has been filed against them, and require collectors to prove that the debt is legally owed to them based on statutes of limitations and other requirements.”