| Applicable
Cities: |
Albany, Buffalo, Mount Vernon,
New Rochelle, New York, Rochester, Schenectady,
Syracuse, Utica, and Yonkers. |
| Interest Rate
Charged: |
Legal -> 16%
Judgement -> 9%
|
| Statute of Limitations
(in years): |
- Open Account -> 6 yearsWritten Contract -> 6 yearsPromissory Note -> 6 yearsDomestic Judgement -> 20 years
- Foreign Judgement -> 20 years
|
| Bad Check Law: |
-> Considered as Civil Penalty
-> Check value + 2 times value of check;
maximum of $400 on NSF checks, $750 for fake
account checks. |
| Wage Garnishment Exemptions: |
90% of disposable earnings; minimum of $127.50/week |
-
i) Open
Account: An open account is a revolving
line of credit that has varying balances over
the course of its life. Example of an open-ended
account is a credit card. For example, the statute
of limitations period that debt collectors have
to collect credit card debts owed in the state
of Alabama is 3 years.
- ii) Written Contract: A written contract, as the name states,
is a loan agreement that is signed by both you and
your lender, stating the terms of the loan e.g repayment
date, applicable interest rate, any late payment
penalties, etc.
- iii) Promissory
Note: A promissory note is very similar
to a written contract, the only big difference is
that the scheduled amortization of payments and
applicable interest rates is all defined within
the promissory note. A mortgage agreement is an
example of a promissory note.
- iv) Domestic Judgement: A domestic judgement allows the creditor
to collect debts owed in the State where the loan
agreement (written contract) was signed. Once a
debt collection judgement is received from the court,
collectors can recover their debts from the state
where the judgement was issued or the state where
you (the person owing the debt) reside.
Example: You live in California where the
statute of limitations for Open-Ended accounts is
2 years. You have a debt collector trying to collect
his debts owed from you in the State of California
by following the statute of limitations law. If
the statute of limitations period is over, the creditor
can sue you in another related state where the actual
transaction occured. For example, if you repaired
your car in the State of Alabama, the creditor can
be granted a "Domestic Judgement" clause
in the state of Alabama allowing him to collect
debts owed by you in the State of Alabama, where
the car was actually repaired.
- v) Foreign Judgement: A foreign judgement is a court issued judgement
from any state, OTHER than the state where the debtor
currently resides in. For example, if Peter who
owes $5000 debt resides in Arizona, a debt collector
can ask for a Foreign Judgement from any state OTHER
than Arizona to pursue his/her debt collection efforts.
- vi) Civil Penalty: A
civil penalty is a type of fine levied against a
wrongdoer who has committed a civil crime and must
pay the state a penalty. This penalty is in the
form of monetary value ($$$). A civil penalty is
NOT a criminal punishment, it is merely a form of
compensation to the state for wrongdoing carried
out by a person. For example, if a person dumps
toxic waste in a park owned by the government, that
person could be charged a civil penalty or monetary
fine to compensate the state for cleaning up the
mess created by that toxic waste.
|
