Considered one of the groundbreaking consumer protection laws, the Fair Debt Collection Practices Act (FDCPA) prevents third party debt collectors from using abusive language or making physical threats for the purpose of collecting outstanding consumer debts.
The FDCPA also prohibits debt collectors from implementing deceptive techniques, such as sending fraudulent collection notices. In addition to the FDCPA, New York has enacted several new regulations concerning the collection of consumer debts that took effect in August of 2015.
The new regulations apply to third party debt collectors, not original creditors. If Collection Bureau of Hudson Valley violates one or more of the new regulations, you have the legal right to contact an attorney to file a claim against the debt collection agency.
What is the Statute of Limitations for Debt Collectors in New York
Statute of limitations means third party debt collectors have a specified period for collecting consumer debts. New York law starts debt collection statute of limitations on the date of a credit account default, which is 30 days after a consumer made the last payment on a debt.
Under New York law, third party debt collectors have six years following the date of default to collect most consumer debts. For store credit card accounts, debt collectors must file a judgment within four years of the credit account default date.
Clearly Defined Fees and Interest Charges
New York consumer protection law requires debt collectors to provide consumers with the name of the original creditor, as well as a detailed description of the debt owed. The detailed description includes the amount of the debt purchased by a third party debt collector such as Collection Bureau of Hudson Valley and the payments a consumer has already made on a credit account.
Third party debt collectors must also list the amount of interest charged to a credit account and any fees added on after the purchase of a debt from the original creditor.
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New York Wage Garnishment Laws
New York uses a different wage garnishment formula than the wage garnishment formula used by most other states. In New York, a debt collector can garnish 10% of your gross wages or 25% of your disposable income, whichever is the lesser amount.
Disposable income is the wage left over after taking out all taxes and expenses such as alimony and child support.
Work with a FDCPA Attorney
A New York licensed FDCPA attorney can help you file a claim to seek actual damages for violations of the landmark law. If Collection Bureau of Hudson Valley contacts you regarding a debt, you should ask for legal assistance to ensure the debt collection agency has complied with the statute of limitations and New York wage garnishment laws.
Additional Resources
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Collection Bureau of Hudson Valley or any other third-party collection agency, you may not be entitled to any compensation.