A NEW YORK SUCCESS STORY
Earlier this morning, the New York Legislature adjourned for the year after working through the night. In the new political dynamic where control of the State Senate is solidly in the hands of a progressive Democratic majority, the receivables industry faced unprecedented attacks. No less than 54 legislative proposals, causing various challenges for the industry, were introduced with real chances for passage.
The most harmful bill, which also had the greatest chance of passage, was AB 6909/SB 4827. This bill would have:
- Reduced the statute of limitations (SOL) from 6 to 3 years,
- Expunged all debt at the expiration of the SOL, and
- Required credit card accounts to be itemized starting at the date of default rather than the charge-off date.
Clearly, this bill would have been absolutely devastating to the industry if adopted and came exceedingly close to passage yesterday in the waning hours of the legislature.
RMAI has been fighting this bill for over 10 years but knew with the changing political landscape, passage was likely in 2019. Based on this assessment, RMAI helped organize a coalition effort to oppose this bill which included RMAI, ACA International, National Creditors Bar Association, New York Creditors Bar Association, and industry participants Cavalry, Encore Capital, and PRA Group. This coalition, along with four lobbying firms retained by coalition members spent months attempting to either amend or defeat this bill; which included round the clock coalition calls that strategized last ditch attempts to prevent bill passage.
RMAI wishes to express our sincere gratitude to our New York members who on short notice made calls and emails to key Senators and Assembly Members – you’re help made the difference!
While our efforts were successful this time, RMAI would implore the industry to not let this hard fought victory weaken our resolve for next year, as the battle will continue. Our opposition saw our strength and will come that much more prepared for the fight in the future. Please consider a one-time contribution to the RMAI Legislative Fund to help us restore our depleted reserves which helps pay for the high quality lobbyists we retain to fight for our industry.
This Alert is intended for Members of RMAI and is for informational purposes only and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.