Advertiser Disclosure

Advertiser Disclosure

The credit card offers that appear on are from credit card companies from which this site possibly receives compensation. This compensation may impact how and where credit card offers appear on this site. This site possibly does not include all available credit card offers.


The Statute Of Limitations For Most Debt Collections In NYS Will Be Cut In Half! Effective April 7th

- May 1, 2022 Debit, News1 comment

On November 8, 2021, New York Governor Kathy Hochul signed into law the Consumer Credit Fairness Act (the “CCFA”) which goes into effect on April 7th, 2022 and May 7th, 2022.  The Act contains a series of new regulations that significantly impact debt collection lawsuits filed in New York state courts. One of the biggest changes is the reduced statute of limitations for most debt collection. 

What is the statute of limitations?

Statute of limitations is a law that dictates the length of time collectors have to take legal action to collect the debt.

Once the statutory limitation period passes, debt collectors cannot attempt to take any legal action against debtors. After the statute of limitation passes, the debt is dropped and no claim can be filed against involved parties.

That’s why the news of the statute of limitation times being cut is a cause for celebration!

Statute Of Limitations Cut In Half In NYS

Watch on YouTube! Subscribe for more great credit content

Watch Now

The changes

Effective April 7th, 2022, the CCFA reduced the statute of limitations for most debt collection lawsuits (arising out of consumer credit transactions), from six years to three years! This time period runs from the date the first missed payment was due. 

Additionally, consumer payments toward the debt, or a consumer’s written or oral affirmation of ownership of the debt will no longer reinstate or extend the limitations period. 

It should be noted that this does NOT shorten the 7 year period that a consumer debt may be reported on your credit report.


Even if a debt collection complaint is filed against you after the statute of limitations for the debt  has expired you MUST answer the complaint and state in your answer that the statute of limitations has expired. It should be noted that this does NOT shorten the 7 year period that a consumer debt may be reported to a Credit Reporting Agency and listed on your credit report.

Some more changes

Effective May 7th, 2022, the CCFA imposes the following additional requirements on original creditors and third party debt collectors (“Plaintiff”) whom wish to collect a debt by filing a complaint:

  • A debt collector must attach to the complaint the contract upon which the complaint is based.
  • The complaint must also include, among other things, the name of the original creditor, the last four digits of the account number, and the date and amount of the last payment.
  • A debt collector must provide a completed “additional notice of lawsuit” to the court clerk when filing the proof of service for the complaint, which the clerk will then mail to the consumer.
  • If a third-party debt collector seeks a default judgment, it must submit supporting affidavits from the original creditor, any prior assignors or sellers of the debt, and a witness for the collector who can verify the chain of title for the debt.

All debt collectors requesting a default judgment must also include an affidavit, stating that the statute of limitations to enforce the debt has not expired.

Was this article helpful?

Sam Sam has nearly a decade's worth of experience educating his many readers on everything credit. Sam spends his days checking out credit cards for a full report, from the minute benefit details to the shebang of welcome bonuses. Plus studying the ins and outs of building proper credit. It’s his favorite pastime and he loves sharing it with others.

Leave A Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.

1 Comment

  1. It great that this happen but also they should shorten the time frame from 7 years to 1 year only if the debt was paid and is zero balance so for this why keep it on file for 7 years


Recent Posts

Follow us

Click here to subscribe to
our WhatsApp channel

best offers

Ink Business Preferred Credit Card

Earn 100,000 points after spending $15,000 within the first 3 months.

more info

New Business Card! Ink Business Premier(SM) Credit Card

Earn $1,000 after spending $10,000 within the first 3 months.

more info

The Platinum Card from American Express

Earn 80,000 points after spending $6,000 within the first 6 months (terms apply).

more info

American Express Gold Card

Earn 90,000 points after spending $4,000 within the first 6 months. Plus, earn up to $200 statement credits on purchases within the first 3 months (you will get back what you swipe), up to $200 in credits. Expires 06/07/2023. (terms apply)

more info

You May Also Like

Did Passover Leave You With High Credit Card Bills?

Did Passover Leave You With High Credit Card Bills?

With Passover behind us, other than good feelings and memories, you’re likely left with plenty of debt on your credit card from all of the season’s expenses. The good news is that you can independently tackle your card balances by performing some balance...

read more
How To Get Cash From A Credit Card [5 Great Ideas]

How To Get Cash From A Credit Card [5 Great Ideas]

The purpose of a balance transfer is to transfer your balance from a credit card with a high APR to a credit card with a lower APR. There are many credit cards that have 0% APR balance transfer offers for as many as 21 months. For savvy consumers, taking advantage of...

read more
The 10 Best 0% APR Credit Cards [2022]

The 10 Best 0% APR Credit Cards [2022]

Having a credit card with a 0% APR period can ease up your financial pressure a bit. 0% APR cards can provide the space you may need to get a look at your purchases and balances before you need to get your act together to pay down those balances, once the 0% APR...

read more

Download link sent

Got it * please check your promotional inbox

Error sending download link

Try Again