Member Alert

New York City - DBA & ACA Join Forces to Seek Clarification on the New York City Regulations on Debt Collection

New York State Court of Appeals on Statute of Limitations

April 29, 2010

DBA and ACA have met with the New York City Department of Consumer Affairs in an effort to seek an extension on the effective date to the new debt collection regulations. Although an extension was not granted, DBA and ACA sent the attached letter to the Department of Consumer Affairs seeking a delay in enforcement and clarification of the new regulations. DBA and ACA will continue to discuss with the Department and will update their members as news becomes available.

In a decision issued this week by the New York Court of Appeals, the Court held that the statute of limitations on a consumer debt depends on where the cause of action accrues or where the creditor was incorporated in the case of Portfolio Recovery Associates, LLC v. King, 2010 NY Slip Op 03470 (NY Ct. Appeals, April 29, 2010).

Members are advised to review their New York files and suits in relation to this decision, and to seek advice of counsel.

For a copy of the letter to the Department of Consumer Affairs, click here, and the King decision, click here.

This Alert is in no way intended to be legal advice and members are encouraged to consult with counsel of their choice.