Even though it has begun to relax some of the restrictions put in place in response to the coronavirus pandemic, the Attorney General and Governor of New York have re-extended a 30-day moratorium on debt collection activities that are owed to the state, including student loans and medical debts.
The new 30-day moratorium will remain in place until July 16. At that time, the AG and the Governor said they will re-assess the situation and either extend the deadline for another 30 days or allow the debt collection activities to resume.
Among the types of debt that are not to be collected are:
- Medical debt owed to one of five state hospitals and five state veterans’ homes
- Student loans owed to SUNY campuses
- Debt related to oil spill cleanup, removal, property damage, breach of contract, and other fees owed to state agencies by certain individuals, small business owners, and homeowners
“As we continue our work to stop the spread of the virus, we recognize that New Yorkers are still struggling with both emotional pain and economic hardship as a result of this crisis,” Gov. Cuomo said in a statement. “By renewing the suspension on the collection of student and medical debt that is referred to the attorney general’s office for an additional 30 days, we are helping to lessen the burden faced by so many individuals, families and businesses whose livelihoods have been affected by the pandemic.”
Many states enacted restrictions aimed at protecting consumers who may have been impacted by the COVID-19 pandemic. But in recent weeks, most of those states have begun to undo those protections and allow businesses, including companies in the credit and collection industry, to operate under pre-pandemic rules.
