June 4, 2020: In 2015, in the matter of Madden v. Midland Funding, LLC, the Second Circuit made news in the lending and debt buying industries when it held a non-bank purchaser of bank-originated credit card debt was subject to New York State’s usury laws. See, Madden v. Midland Funding, LLC., 786 F.3d 246, 250-51 […]
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State Updates: Updated Regulatory Guidance and Recovery Loan Programs
Connecticut
No Action Position Regarding Temporarily Working from Home Due to COVID-19 Extended
On May 20, 2020, the State of Connecticut’s Department of Banking issued an announcement indicating it would continue to allow consumer collection agencies to operate […]
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State Updates: Debt Collection Suspension Status and Regulatory Guidance
New York
Suspension of State Debt Collection Renewed
New York State: On May 15, 2020, recognizing many New Yorkers are still suffering physically and economically from the impact of the COVID-19 pandemic, New York […]
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State Updates: New York Court of Appeals, New York State Court System and New York City County Clerks
New York
New York Court of Appeals Adopts Electronic Filing
On Monday May 11, 2020, the New York Court of Appeals (Court) issued a Notice to the Bar announcing rule changes intended to […]
May 12, 2020: On March 18, 2020, Maine Governor Janet Mills signed into law LD 1053 by Rep. Janice Cooper (Chapter 622 of the Laws of 2020). This new law, which takes effect on September 1, 2020, will reduce the statute of limitations on judgment liens from 20 years to 10 years with a […]
State Updates: As States Extend State of Emergency Orders, Debt Collection Remains in Focus
Iowa
As previously reported, on April 24, 2020, the Governor of Iowa extended the State of Public Health Disaster Emergency in response to the ongoing state of […]
April 30, 2020:
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State Updates: As States Extend State of Emergency Orders, Debt Collection Remains in Focus
Iowa
On Friday April 24, 2020, Iowa Governor, Kim Reynolds issued an Order extending the State of Public Health Disaster Emergency in response […]
April 24, 2020:
California Exempts CARES Act Payments from Garnishment
On April 23, 2020, California’s Governor Newsom, signed an Executive Order that exempts garnishment for any individuals receiving federal, state or local government financial assistance in response to the COVID-19 pandemic. This means, effective immediately, any federal, state or local government financial assistance made available to […]
April 23, 2020: Under Indiana law, the Indiana Supreme Court has supervisory authority to issue Orders to protect the public interest on an emergency basis. Earlier this month, the Indiana Supreme Court invoked this authority to prohibit Indiana courts from issuing new writs of attachment, civil bench warrants, or body attachments until the expiration of […]
April 20, 2020:
New York
On Saturday April 18, 2020, New York’s attorney general said banks and debt collectors cannot freeze or seize stimulus funds.
Under New York law, certain types of property — including public benefits like public assistance, social security, and veterans’ and retirement benefits — are exempt from execution, levy, attachment, garnishment, or other […]