By: Robert J. Nahoum
The New York Consumer Credit Fairness Act (CCFA) is a major reform to the state’s debt collection laws designed to protect consumers from unfair, deceptive, or outdated collection practices. Enacted in 2021, the law gives consumers stronger rights when faced with debt collection lawsuits—especially cases filed by junk debt buyers who purchase old debts for pennies on the dollar.
Why the Law Was Needed
For years, thousands of New Yorkers were sued for debts they didn’t recognize, couldn’t verify, or had long since expired under the statute of limitations. Many of these lawsuits ended in default judgments—court orders entered automatically when consumers failed to respond—often because they never received proper notice or didn’t know how to respond.
The CCFA was designed to fix that system and make it fairer to the average consumer.
Key Protections Under the CCFA
- Shorter Statute of Limitations:
The time limit for filing most consumer debt lawsuits is now three years (down from six). This means collectors can’t sue over very old debts that have gone stale. - Stronger Notice Requirements:
Debt collectors must now give consumers clear, understandable information about the lawsuit, including who owns the debt, how much is allegedly owed, and how to respond. - Proof of the Debt Is Required:
Collectors must attach specific documents proving the debt’s validity—such as the original contract and a chain of ownership—so consumers know exactly what they are being sued for. - Mandatory Notices of Rights:
Along with the summons and complaint, collectors must include a “Notice of Consumer Rights” that explains in plain language what the lawsuit means and what steps consumers can take. - Default Judgment Protections:
Before a default judgment can be entered, creditors must present detailed evidence proving that the consumer was properly served and that the claim is legitimate.
How the CCFA Protects You
For everyday New Yorkers, the CCFA levels the playing field. It ensures that debt collectors can’t rely on missing paperwork, expired claims, or vague allegations. Most importantly, it gives consumers the time, information, and tools needed to respond before a court judgment is entered against them.
If you’ve been sued for a debt in New York, take the time to review the lawsuit carefully. Check whether the collector followed the new rules under the CCFA. If anything seems off, you may have strong defenses available.
Need Help With a Debt Collection Lawsuit?
The Law Offices of Robert J. Nahoum, P.C. helps New York consumers fight back against unlawful or unfair debt collection practices. If you’ve been sued for a debt or received a default judgment, contact us to learn your rights under the New York Consumer Credit Fairness Act.
Contact:
Law Offices of Robert J. Nahoum, P.C.
📞 (845) 232‑0202 | www.nahoumlaw.com