A new law went into effect in New York today that clarifies how collectors and creditors can attempt to collect debts from deceased individuals.
The bill, S3491A, was passed by the New York legislature and signed into law by Gov. Andrew Cuomo last December.
Under the law, creditors or collection agencies seeking to collect on a debt owed by an individual who is deceased must affirmatively inform surviving family members or next-of-kin that they are not legally obligated to repay the deceased individual’s debts. Neither creditors nor collection agencies can make any representations that a surviving family member is required to pay the debt of a deceased individual “in a way that contravenes with established fair debt collection practices.”
Said Gov. Cuomo, in a statement: “Grieving New Yorkers should not have to suffer the indignity and insult of being hounded by unscrupulous debt collectors. This new law puts debt collectors in check and creates important consumer protections that make it clear that an individual’s surviving family members are not obligated to pay their loved one’s debts.”
The bill was launched following the publication of an article in The New York Times
This is a law in search of a violation. Reputable collectors already do this. Disreputable collectors don’t and won’t, and likely violate FDCPA in the process.
I look for Gov. Cuomo to toss his hat into the already crowded field of 2020 candidates seeking the Democratic presidential nomination.