What's happening
This bill increases the penalty from $100 to $500 for failing to file satisfaction of judgments of $5,000 or more.
Why it matters
Creates a stronger incentive for judgment creditors (usually the party owed money) to promptly file official proof when a judgment of $5,000 or more has been paid. helping debtors clear their records and avoid ongoing negative credit or legal consequences.
Significantly increases the financial risk for failing to update court records after large debts are satisfied. , which may reduce administrative errors, lingering judgments, and potential abuses by creditors who delay releasing satisfied debts.
Maintains a lower penalty for smaller debts. (under $5,000), suggesting the legislature views timely satisfaction filings for larger debts as more critical and possibly more prone to problematic delays.
Continues to exempt New York City (and other large cities) from the penalty unless a formal written demand is served. , meaning governmental creditors are not automatically penalized, which could be relevant for those dealing with municipal debts.
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Who cares
Headline styles
Increase Judgment Penalty Fees
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Signed chap.227
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.47
- Substituted for A1026
- Referred to codes
- Delivered to assembly
- Passed senateVote 49–11
- Advanced to third reading
- 2nd report cal.
- 1st report cal.142
Show 12 earlier actions
- Referred to judiciary
- Returned to senate
- Died in assembly
- Ordered to third reading cal.276
- Substituted for A1026
- Referred to codes
- Delivered to assembly
- Passed senateVote 53–8
- Advanced to third reading
- 2nd report cal.
- 1st report cal.468
- 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
2719
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
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.
LBD02594-01-9
S. 2719 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 indi- viduals 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 satis- fied 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 enti- ties such as credit card companies do this as a matter of standard busi- ness 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.
Legislative history
2009-2010: S.5219/A.7922 Rosenthal - Judiciary 2011-2012: S.438-B/A.1889-B Rosenthal - Judiciary 2013-2014: S.3133/ A.3416 Rosenthal - Judiciary 2015-2016: S.2827/A.646 Rosenthal - Judiciary 2017- 2018: S.3318/A.3510 Rosenthal - Judiciary
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.