LIEB BLOG

How current events impact business & real estate

Showing posts with label consumer debt. Show all posts
Showing posts with label consumer debt. Show all posts

Monday, January 10, 2022

Consumer Debt Interest Rate Reduced in 2022

Starting on April 30, 2022, the annual interest rate on money judgments arising out of consumer debt will be reduced from 9% to 2%.


The new law amends New York Civil Practice Laws and Rules §5004.


It's important to note that if the previous 9% interest rate applied to an ongoing judgment, the creditor has up to sixty (60) days from 4/30/2022 to issue and amend the interest rate to 2%. Any money collected in excess of the judgment amount shall be returned to the debtor. However, if the money was collected prior to 4/30/2022 to satisfy the debt in in full or in part, then the debtor has no right to a refund or remedy.