Virus spread prompts extension of New York debt collection suspension
Written by Site Hub on April 25, 2020
On Friday, April 17, Governor Andrew Cuomo and Attorney General Letitia James informed the public that a previous suspension of certain debt collections and associated interest and fees initiated for 30 days starting on March 17 had been extended to May 17 because of the SARS-CoV-2 pandemic. They also explained that another extension is possible in 30 days.
Suspended debt collections include any collections related to property damage, fees owed to state-run agencies, and oil spill cleanup and removal. Additionally, they include collections normally handled by the attorney general’s office, such as when patients owe money to the state and state-owned and veterans’ hospitals, and students have SUNY system debts.
As AG James explained: “New Yorkers need to hold on to every dollar they have and focus on keeping their families safe and healthy. Millions across the country, including more than a million right here in New York, have filed for unemployment and are struggling to get by. While we battle this public health crisis, the last thing my office will do is add undue stress or saddle our neighbors with unnecessary financial burden.”
On Saturday, April 18, AG James also prevented debt collectors from freezing or seizing funds from Coronavirus Aid, Relief, and Economic Security Act (CARES Act) stimulus payments. James informed debt collectors, as well as banks and other creditors, that stimulus payments are exempt from normal garnishment proceedings. James will treat any attempt at garnishment as an illegal violation of consumer protection laws.
https://cnycentral.com/news/coronavirus/ag-james-to-debt-collectors-hands-off-the-stimulus-payments
