What's happening
This bill prohibits any attempts to collect consumer credit debt once the statute of limitations has expired.
Why it matters
Stronger Consumer Protections. By completely extinguishing the right to collect on consumer credit debt after the statute of limitations expires, the bill prevents debt collectors from harassing or pressuring individuals about very old debts, offering significant peace of mind to consumers.
Limits on Collection Tactics. The bill explicitly covers all forms of collection attempts (calls, mail, and other methods), closing loopholes that might allow collectors to continue outreach through non-legal means even after legal remedies lapse.
Reduces Risk of "Zombie Debt". Prevents the revival and sale of old, uncollectible debts to third-party collectors, limiting the common practice where expired debts resurface and consumers are again pursued, sometimes for debts they don’t recognize or already paid.
Legal Clarity. By clearly stating that both the right and the remedy to collect are extinguished, the bill removes ambiguity, making it easier for courts and consumers to understand when a debt is truly uncollectible, potentially reducing unnecessary litigation or disputes.
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Who cares
Consumers with time-barred credit debt
The bill would extinguish the right to collect their debt once the deadline to sue has expired, including collection attempts by phone or mail.
Consumer credit lenders
Creditors would lose the right to pursue collection, not just the ability to sue, after the time limit expires.
Debt buyers
Third-party purchasers would be barred from attempting to collect consumer credit debt after the deadline for an action has passed.
Third-party debt collectors
Authorized third parties would have to stop calls, mail and other collection attempts once the time to sue has expired.
Headline styles
End Old Debt Collection
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2239
2019-2020 Regular Sessions
IN SENATE
January 23, 2019
Introduced by Sen. SANDERS -- 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 the expiration of right to collect consumer credit debt
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The civil practice law and rules is amended by adding a new section 214-g to read as follows:
§ 214-g. Expiration of right to collect consumer credit debt. When the time for an action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant has expired the right to collect consumer credit debt is extinguished as well as the remedy. For purposes of this section, "the right to collect consumer credit debt" shall mean any attempts by the creditor, third party purchaser, or other authorized third party to collect such debt including, but not limited to, calls, mail or other attempts to collect.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05440-01-9
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 the expiration of right to collect consumer credit debt
Purpose
When the time for an action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant has expired the right to collect consumer credit debt is extinguished as well as the remedy
Summary of provisions
Relates to the expiration of right to collect consumer credit debt
Existing law
This is a new law.
Justification
The right to collect consumer credit debt shall mean any attempts by the creditor, third party purchaser or other authorized third party to collect such debt including, but not limited to, calls, mail or other attempts to collect
Legislative history
02/17/15 - Referred to Judiciary
01/06/16 - Referred to Judiciary
Fiscal implications
None
Local fiscal implications
None
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.