What's happening
This bill increases penalties for failing to file satisfied court judgments of $5,000 or more with the court clerk.
Why it matters
Increases financial accountability for judgment creditors. By raising the penalty from $100 to $500 for failing to file proof of satisfied judgments of $5,000 or more, the bill creates a stronger incentive for creditors to promptly update court records, helping prevent unnecessary legal complications for debtors.
Helps protect consumers’ credit and legal status. When satisfied judgments are not properly filed, debtors may continue to face adverse credit effects, wage garnishments, or other enforcement actions despite having paid what they owe. This bill aims to minimize such harm by encouraging timely filing.
Distinguishes between small and large judgments. The legislation maintains the lower $100 penalty for judgments under $5,000, recognizing that higher-value cases can have bigger impacts and thus warrant stricter compliance and higher penalties.
Contains an exception for large cities. The penalty increase does not generally apply to cities with populations over one million (such as New York City), except in cases where the city fails to file even after a formal written demand, reflecting administrative realities and balancing enforcement priorities.
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Who cares
Headline styles
Increase Penalties on Unfiled Judgments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Increase Judgment Filing Penalties
Assembly Floor Calendar · Sponsor Linda Rosenthal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3318
2017-2018 Regular Sessions
IN SENATE
January 20, 2017
Introduced by Sen. KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to increasing penalties for failure to execute and file satisfied judgments of $5,000 or more with the court clerk
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (c) of section 5020 of the civil practice law and rules, as amended by chapter 575 of the laws of 1975, is amended to read as follows:
(c) When [the] a judgment for less than five thousand dollars is fully satisfied, if the person required to execute and file with the proper clerk pursuant to subdivisions (a) and (d) [hereof] of this section fails or refuses to do so within twenty days after receiving full satisfaction, then the judgment creditor shall be subject to a penalty of one hundred dollars recoverable by the judgment debtor pursuant to [Section 7202 of the civil practice law and rules] section seventy-two hundred two of this chapter or article eighteen of either the New York City civil court act, uniform district court act or uniform city court act. When a judgment for five thousand dollars or more is fully satisfied, if the person required to execute and file with the proper clerk pursuant to subdivisions (a) and (d) of this section fails or refuses to do so within twenty days after receiving full satisfaction, then the judgment creditor shall be subject to a penalty of five hundred dollars recoverable by the judgment debtor pursuant to section seventy-two hundred two of this chapter or article eighteen of either the New York city civil court act, uniform district court act or uniform city court act; provided, however, that such [penalty] penalties shall not be recoverable when a city with a population greater than one million persons is the judgment creditor, unless such judgment creditor shall fail to execute and file a satisfaction-piece with the proper clerk pursuant to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05347-01-7
S. 3318 2
subdivisions (a) and (d) [hereof] of this section within twenty days after having been served by the judgment debtor with a written demand therefor by certified mail, return receipt requested.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the civil practice law and rules, in relation to increasing penalties for failure to execute and file satisfied judgments of $5,000 or more with the court clerk
Purpose or general idea of bill
This bill would increase the statutory damages (from $100 to $500) on creditors who do not execute and file satisfied judgments with the court clerk for judgments in excess of $5,000. The goal is to encourage individuals to file so that it will be less likely that someone will have false strikes on their credit report.
Summary of specific provisions
Section one amends subdivision (e) of section 5020 of the civil practice law and rules to raise the fine for failing to execute and file a satisfied judgment with the proper clerk from one hundred to one thousand dollars.
Section two sets out the effective date.
Justification
This bill amends Civil Practice Law and Rules and affects every civil judgment. Under current law, an individual who receives a satisfied judgment from the court must file a satisfaction of judgment. Most entities such as credit card companies do this as a matter of standard business practice because such satisfactions (or lack thereof) are picked up by credit bureaus. If the entity does not file a satisfaction (even if they got one) and the credit bureau picks it up, then the credit rating of the individual involved in the dispute is affected.
At issue now is the fact that judgments in housing court and elsewhere are starting to be picked up by credit rating agencies, However, many landlords often fail to file a satisfaction of judgment and so judgments can end up on a tenant's credit report as unpaid, even if that is not true. This bad credit rating disproportionately affects low-income citizens because it means that they must pay more for things such as credit cards, car loans and mortgages.
This legislation will most likely affect housing disputes since most other businesses automatically file a satisfaction of judgment. The goal is to increase fines and therefore give landlords and other entities a greater incentive to remember to file satisfactions of judgment. This will result in a decrease in the number of individuals whose credit ratings are affected by a claimant's failure to file a satisfaction of judgment.
Fiscal implications
None.
Effective date
This act shall take effect on the one hundred twentieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.