Debt collection is a strenuous procedure for many reasons. For the creditors and collection agencies it creates a deep dent on the budget and utilities valuable resources, it takes up a lot of time and there is always a chance of losing the debt money altogether. For the indebted, debt collection is like the bane of their existence because it is an endless cause of stress for them and a means of constant worry and perhaps even irritation.
To make certain that this admittedly exhausting procedure is carried out in the most conciliatory and smooth manner for all parties involved, a set of laws and regulations is mandatory.
Debt Collection Laws in New York
If you are a resident of the state of New York or your debt incurred in this state, then you should have accurate knowledge regarding debt collection laws in NY. Mentioned below are the two set of acts that govern debt collection:
Facts About Debt Collection in New York
According to the recently amended set of the New York debt collection regulations:
Statute of Limitations on Debt Collection in New York
The statute of limitations for debt collection in New York is 6 years for most consumer debts. Contrary to other states, the time period does not start from when the original debt incurred. In fact, it begins when the last payment is made. For example, if you incurred a debt in 2015 but made the first payment in 2017, then the 6 years of the statute of limitations will be counted from 2017!
This is an incredibly important factor to be well aware of as it has the potential to drag on a particular debt for years and years.
In the state of New York, debt collection is slightly more tricky and therefore provides a window for fraudulent and malicious creditors to exploit the indebted. But, by simply being knowledgable about the
laws and facts regarding debt collection you can easily safeguard yourself as well as your assets.