Signed by Governor Kathy Hochul

Vote Smart's Synopsis:

Vote to pass a bill that establishes the Consumer Credit Fairness Act.

Highlights:

• Amends the civil practice law and rules and the judiciary law, in relation to consumer credit transactions (Sec. 1).

• Establishes that certain actions arising out of consumer credit transactions will be commenced within 3 years. An action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant must be commenced within 3 years (Sec. 1).

• Specifies additional mailing notice at the time of filing with the clerk of the proof of service of the summons and complaint in an action arising out of a consumer credit transaction, the plaintiff must submit to the clerk a stamped, unsealed envelope addressed to the defendant together with a written notice in clear type of no less than 12-point in size, in both English and Spanish (Sec. 2).

• Establishes that in an action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant, the contract or other written instrument on which the action is based must be attached to the complaint, however, if the account was a revolving credit account, the charge-off statement may be attached to the complaint instead of the contract or other written instrument, and the following information will be set forth in the complaint (Sec. 2):

• The name of the original creditor;

• The last 4 digits of the account number printed on the most recent monthly statement recording a purchase transaction, last payment or balance transfer;

• The date and amount of the last payment or, if no payment was made, a statement that the purchaser, borrower or debtor made no payment on the account; and

• If the complaint contains a cause of action based on an account stated, the date on or about which the final statement of account was provided to the defendant.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes the Consumer Credit Fairness Act.

Highlights:

• Amends the civil practice law and rules and the judiciary law, in relation to consumer credit transactions (Sec. 1).

• Establishes that certain actions arising out of consumer credit transactions will be commenced within 3 years. An action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant must be commenced within 3 years (Sec. 1).

• Specifies additional mailing notice at the time of filing with the clerk of the proof of service of the summons and complaint in an action arising out of a consumer credit transaction, the plaintiff must submit to the clerk a stamped, unsealed envelope addressed to the defendant together with a written notice in clear type of no less than 12-point in size, in both English and Spanish (Sec. 2).

• Establishes that in an action arising out of a consumer credit transaction where a purchaser, borrower or debtor is a defendant, the contract or other written instrument on which the action is based must be attached to the complaint, however, if the account was a revolving credit account, the charge-off statement may be attached to the complaint instead of the contract or other written instrument, and the following information will be set forth in the complaint (Sec. 2):

• The name of the original creditor;

• The last 4 digits of the account number printed on the most recent monthly statement recording a purchase transaction, last payment or balance transfer;

• The date and amount of the last payment or, if no payment was made, a statement that the purchaser, borrower or debtor made no payment on the account; and

• If the complaint contains a cause of action based on an account stated, the date on or about which the final statement of account was provided to the defendant.

Full Bill Text